Small Caliber Ammunition Market Size
| Study Period | 2019-2028 |
| Market Size (2023) | USD 5.85 Billion |
| Market Size (2028) | USD 7.41 Billion |
| CAGR (2023 - 2028) | 4.84 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Small Caliber Ammunition Market Analysis
The Small Caliber Ammunition Market size is expected to grow from USD 5.85 billion in 2023 to USD 7.41 billion by 2028, at a CAGR of 4.84% during the forecast period (2023-2028).
The COVID-19 pandemic has had a very minimal impact on the small caliber ammunition market as the procurement programs of armed forces for new-generation military arms and ammunition along with the defense budget have remained unaffected.
The growth of the small caliber ammunition market is subjective to several associative factors, such as the allocation of funds for procurement of new equipment, and may be adversely affected due to the rapid technological advances resulting in a short-effective life of newly developed technology.Increasing investments in defense for military modernization programs to procure better equipment to replace its existing arsenal is also acting as one of the key market drivers of the small-caliber ammunition market.
The stringent laws on gun ownership act as a key restrain for the growth of the small caliber ammunition market during the forecast period. The growing emphasis on gun control measures to reduce accidental gun deaths and injuries, domestic violence-related deaths, homicides, and suicides may even make the licensed rifle purchasing processes difficult during the upcoming period. This is expected to deter the growth of the market during the forecast period.
Small Caliber Ammunition Market Trends
This section covers the major market trends shaping the Small Caliber Ammunition Market according to our research experts:
The Military Segment Accounted for a Major Market Share
The growing threats due to terrorism, territorial conflicts, and geopolitical tensions have forced the countries to increase their defense spending. global defense expenditure continued to increase in 2020 and 2021. According to SIPRI, the global military expenditure in 2021 rose to USD 2113 billion, an increase of 7% from 2020. billion. Global spending in 2021 was 19% higher than in 2012. The growing defense budgets have facilitated the increasing investments in military modernization programs aimed at procuring better weapons to supplement or replace the existing weapons arsenal. The impact of military modernization on the ammunition market is being witnessed in countries like Germany, France, India, China, and Russia, which are spending significantly on enhancing the capabilities of their ground forces by inducting state-of-the-art small arms. The need to maintain a sufficient ammunition inventory with the militaries worldwide and the increasing demand for training ammunition is also anticipated to impact the small military caliber ammunition segment positively.
Also, several militaries have been involved in peacekeeping missions and counter-insurgency operations in foreign countries and require a continuous supply of ammunition for continuing their operations. This has been one of the primary growth factors for the segment. However, as the US-led troops moved out of the conflict zones, such as Afghanistan, Iraq, and Somalia in 2021, the market for small military caliber ammunition is expected to register lower growth in the years to come, compared to the growth observed in the last decade. Militaries are increasingly moving towards higher calibers like 7.62 mm projectiles, as the existing widely used calibers like the 5.56 mm are becoming ineffective in piercing the tougher armors. Countries like the United States and India are also developing firearms based on new calibers like the 6.8 mm ammunition, which are expected to witness higher demand in the years to come.
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North America is the Largest Market for Small Caliber Ammunition
The US has one of the largest armed forces in the world, with 1.83 million total military personnel. The US is also the largest military spending country in the world. In 2021, the United States spent around 800.67 billion U.S. dollars on its military. The United States had around 750 bases in at least 80 countries worldwide as of July 2021. In addition to active combat, US personnel are typically deployed as part of several peacekeeping missions, and military attachés, or are part of the embassy, consulate security, and several other classified missions. Such deployments have significantly contributed toward the growth of the procurement of arms and ammunition by the US armed forces. The United States launched the Next Generation Squad Weapon (NGSW) program, aiming to replace the 5.56x45mm caliber M4 Carbine, M249 SAW (Squad Automatic Weapon), and 7.62x51mm caliber M240 machine guns with rifles that utilize a common 6.8mm caliber cartridge. The contract for the NGSW rifle is anticipated to provide weapon suppliers (among True Velocity and Sig Sauer, Inc.) by the end of 2022.
On the other hand, civilians in the US alone account for more than about 45% of the worldwide total of civilian-held firearms. Government initiatives aimed at creating personal safety awareness programs drive the country's civilian small arms and ammunition demand. Programs like the Civilian Marksmanship Program promote firearm safety training and rifle practice for citizens, focusing on youth. However, as the gun-related violence in the country increased over the past few years, the government has been making strict gun policies to regulate gun prefoliation.
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Small Caliber Ammunition Industry Overview
The small caliber ammunition market is fragmented due to the presence of several local and global players in the market. Some prominent players in the small caliber ammunition market include CBC Global Ammunition, Northrop Grumman Corporation, General Dynamics Corporation, Nammo AS, and Olin Corporation. Most countries produce small ammunition through local production capacities and minimal orders given to foreign players to meet specific caliber shortages of ammunition of purpose with military applications. For instance, the Kenya Ordnance Factories Corporation (KOFC) is the local manufacturing company in Kenya that manufactures small-caliber ammunition and related products delivered to Kenyan armed forces, security agencies, and licensed arms dealers. It exported it to allied countries in Africa. The manufacturing facility's capacity is estimated to be at least 20,000 bullets per day. Similarly, INDUMIL, FAMAE, and Aguila Ammunition are the local manufacturers of small caliber ammunition in Colombia, Chile, and Mexico, respectively, that cater to local demand. NATO members and players in the NATO countries benefit from ammunition demand originating from other NATO members and thus have adequate market presence in the military market.
Small Caliber Ammunition Market Leaders
Northrop Grumman Corporation
General Dynamics Corporation
Nammo AS
CBC Global Ammunition
Olin Corporation
*Disclaimer: Major Players sorted in no particular order
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Small Caliber Ammunition Market News
- In December 2021, India has approved a major deal for manufacturing over 0.5 million AK-203 rifles in India. The rifles will be manufactured in India as part of the joint venture Indo-Russia Rifles Pvt Ltd (IRRPL). The Indian Army has a requirement for around 770,000 AK-203 rifles, of which 100,000 will be imported, and the rest will be manufactured in India, under a contract worth USD 674 million (INR 5,124 Crore). The Indian AK-203 will fire 7.62 x 39 mm ammunition, which is different from 7.6251 mm ammunition used by present-day AK-47 rifles of the Indian Army.
- In May 2021, India's Ordnance Factory Board (OFB) dispatched 11 million rounds of 5.56x45mm (M193) caliber bullets to the United States. This was the first major export order of OFB for small arms ammunition from the United States.
- In April 2021, PT Pindad, the state-owned enterprise, received orders from Thailand for an undisclosed quantity of 5.56 mm caliber munitions.
- In January 2021, Philippines awarded a contract to Brazilian arms manufacturer Taurus Armas to fulfill a requirement for more than 12,000 new Taurus T4 5.56 x 45mm automatic rifles. In 2019, SIG Sauer USA was awarded a contract to deliver 2,702 SIGM400 rifles
Small Caliber Ammunition Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porters Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 End-Use
5.1.1 Civilian
5.1.2 Military
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Russia
5.2.2.5 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Mexico
5.2.4.3 Rest of Latin America
5.2.5 Middle-East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 United Arab Emirates
5.2.5.3 Egypt
5.2.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles*
6.2.1 Northrop Grumman Corporation
6.2.2 General Dynamics Corporation
6.2.3 BAE Systems PLC
6.2.4 Denel SOC Ltd
6.2.5 Remington Arms Company LLC
6.2.6 CBC Global Ammunition
6.2.7 RUAG Group
6.2.8 MESKO
6.2.9 Nammo AS
6.2.10 Olin Corporation
6.2.11 CCI Ammunition
6.2.12 Elbit Systems Ltd
6.2.13 Ordnance Factory Board (OFB)
6.2.14 PT Pindad
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Small Caliber Ammunition Industry Segmentation
The Small calliber includes the range of ammunition in production and deployment that are below .50 caliber (12.7 mm), including 5.56 mm, 7.62 mm, 9 mm, 10- and 12-gauge, .22 caliber, .30 caliber, .38 caliber, .45 caliber, and .300 Winchester Magnum (WinMag). The report also includes ammunition used by military personnel and civilians. The military segment includes procurements by the military (army, navy, and air force), homeland security, local law enforcement agencies, border security forces, and special forces.
The Small Caliber Ammunition Market is segmented by End-Use, and by Geography. By End-Use, the market is segmented into Civilian and Military. By Geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East, and Africa. The market sizing and forecasts have been provided in value (USD million) for each segment.
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Small Caliber Ammunition Market Research FAQs
How big is the Small Caliber Ammunition Market?
The Small Caliber Ammunition Market size is expected to reach USD 5.85 billion in 2023 and grow at a CAGR of 4.84% to reach USD 7.41 billion by 2028.
What is the current Small Caliber Ammunition Market size?
In 2023, the Small Caliber Ammunition Market size is expected to reach USD 5.85 billion.
Who are the key players in Small Caliber Ammunition Market?
Northrop Grumman Corporation, General Dynamics Corporation, Nammo AS, CBC Global Ammunition and Olin Corporation are the major companies operating in the Small Caliber Ammunition Market.
Which is the fastest growing region in Small Caliber Ammunition Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Small Caliber Ammunition Market?
In 2023, the North America accounts for the largest market share in the Small Caliber Ammunition Market.
Small Caliber Bullets Industry Report
Statistics for the 2023 Small Caliber Bullets market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Small Caliber Bullets analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Small Caliber Bullets Market Report Snapshots
