Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 390.84 Million |
| Market Size (2030) | USD 493.91 Million |
| Growth Rate (2025 - 2030) | 4.79% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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South America Ammunition Market Analysis by Mordor Intelligence
The South America Ammunition Market size is estimated at USD 390.84 million in 2025, and is expected to reach USD 493.91 million by 2030, at a CAGR of 4.79% during the forecast period (2025-2030).
Although the COVID-19 pandemic affected the economy of the region, it did not diminish the sales of ammunition in the region during and after 2020. In fact, in the year 2020, when COVID-19 was at its peak, Mexico's military expenditure was USD 8.68 billion, a 7.91% increase from 2020. From 2021, as the supply chain also began to reach its maximum recovery, the ammunition market further began to showcase its growth.
In South America, there is a constant supply, availability, and proliferation of ammunition to civilians, law enforcement, and the military. This may be one of the major driving factors for the ammunition market in South America during the forecast period. The countries in South America, like Mexico, Brazil, Peru, Argentina, Bolivia, and Colombia, are involved in the production and exporting of ammunition. This growth of ammunition trade in South America is another propelling factor for the growth of the market in the region. The changing laws and regulations pertaining to the use of arms and ammunition by civilians in this region are expected to open up opportunities for the market during the forecast period.
South America Ammunition Market Trends and Insights
The Military Segment to Dominate the Market During the Forecast Period
The military segment of the market is expected to record the highest CAGR during the forecast period. This region has been strengthening its military front, with a strong focus on military spending, over the years, irrespective of the economic crisis and social and political unrest. Some of the major contributors to the military expenditure growth in the region are Brazil (with a military expenditure of USD 19.1 billion in 2021) and Mexico (military expenditure of USD 8.6 billion), among others. The procurements of aircraft, armored vehicles, and naval vessels by South American countries may generate demand for ammunition and weapon systems. Additionally, the border issues between the United States and Mexico, along with the country's ongoing war on drugs, are generating demand for ammunition from border security forces and special forces in the region.
Brazil Held Highest Shares in the Market
Brazil is expected to hold the highest share of the Latin American ammunition market. Brazil is also the largest defense spender in Latin America, which constituted more than 35% of Latin America's total military spending in 2021. Also, in 2021, Brazil's defense expenditure was USD 19.1 billion, which was the highest in Latin America. Brazil has been one of the largest ammunition exporters in Latin America over the past few years, owing to its high production levels of ammunition.
According to the United Nations COMTRADE database on international trade, in 2022, Brazil's Exports of arms and ammunition, parts, and accessories were USD 442.69 million. The country increased its arms exports from USD 204 million in 2019 to USD 377 million in 2021. Additionally, in 2019, the Brazilian government relaxed the strict gun laws through a decree, in order to make it easier for Brazilians to buy guns and ammunition. According to the decree, the right to purchase cartridges per year was increased from 50 to 5,000 and to 1,000 for restricted weapons, and gun owners can keep up to four guns in their homes or offices. This step was taken to open up the Brazilian market to firearms and ammunition manufactured outside the country and increase civilian self-defense capability. The relaxation in gun laws lead to the growth in the number of legal firearms sold, by 65% in 2021. With such initiatives, the country is expected to support the local players, like IMBEL and CMC, and international players to get a significant share of the market during the forecast period.
Competitive Landscape
The South American ammunition market is moderately fragmented in nature, with the presence of several players holding significant shares in the market. The prominent players in the market are CBC, FAMAE, Aguila Ammunition, IMBEL, and CAVIM. Most of the players in the region are local players and state-owned companies that extend their support to the corresponding local border forces, military, law enforcement, and police officials. The global players, due to their brand value, may have penetration into the market and capture a significant share, as there are limited players in the market. However, the ongoing ammunition contracts and their extensions, with the existing local state-owned players, can cause an entry barrier to foreign players.
South America Ammunition Industry Leaders
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FAMAE
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CBC Defense
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Aguila Ammunition
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IMBEL
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EMGEPRON
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2022: Aguila Ammunition launched the 9mm, 124 grain Jacketed Hollow Point (JHP), which claims to be the right choice for those seeking accurate ammunition for defense purposes.
- December 2021: FAMAE unveiled the technological demonstrator of the 122 mm Rocket Launch System, as a part of the project GDD René Echeverría.
South America Ammunition Market Report Scope
Ammunition refers to any explosive material that is fired or detonated from a weapon or weapon system. Common ammunition that is used in civil and military sectors are bullets, bombs, land mines, etc.
The South American ammunition market is segmented based on type and end user. Based on type the market is segmented into small caliber, medium caliber, large caliber, mortar, and artillery Ammunition. Based on the end user the market is segmented into civilian and military. The scope of the South American ammunition market includes the manufacturing and procurement of ammunition by local law enforcement agencies and police officials in South America only. Law enforcement is included in the military segment of the market.
Ammunition Type
| Small Caliber |
| Medium Caliber |
| Large Caliber |
| Mortar and Artillery Ammunition |
End User
| Civilian |
| Military |
Country
| Mexico |
| Brazil |
| Argentina |
| Chile |
| Rest of South America |
| Ammunition Type | Small Caliber |
| Medium Caliber | |
| Large Caliber | |
| Mortar and Artillery Ammunition | |
| End User | Civilian |
| Military | |
| Country | Mexico |
| Brazil | |
| Argentina | |
| Chile | |
| Rest of South America |
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Key Questions Answered in the Report
What is the current Latin America Ammunition Market size?
The Latin America Ammunition Market is projected to register a CAGR of greater than 2% during the forecast period (2025-2030)
Who are the key players in Latin America Ammunition Market?
FAMAE, CBC Defense, Aguila Ammunition, IMBEL and EMGEPRON are the major companies operating in the Latin America Ammunition Market.
What years does this Latin America Ammunition Market cover?
The report covers the Latin America Ammunition Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Latin America Ammunition Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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