The global ammunition market is estimated to be valued at USD 32,103.4 Mn in 2025 and is expected to reach USD 40,050.0 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2025 to 2032.
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The global ammunition market has witnessed a rise over the past decade due to increasing defense expenditures of countries and growing internal security threats. Law enforcement agencies and national militaries across both developed and developing nations have boosted their ammunition stocking to deal with issues like terrorism, border conflicts, and political instability. Additionally, the popularity of recreational shooting and hunting has expanded the consumer segment of this industry. Innovations in ammunition design have allowed manufacturers to develop more effective and high-performance bullets. However, strict regulations on ammunition trade and sales to civilian users in some parts of the world may moderately challenge market growth going forward.
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Current Event |
Description and its Impact |
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Technological Advancements in Ammunition Manufacturing |
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U.S. Regulatory and Legislative Changes |
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Category |
Price Range |
Key Drivers |
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Small Caliber Ammunition |
$0.20 – $1 per round |
Civilian + military training demand; caliber size; casing material (brass vs. steel). |
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Medium Caliber Ammunition |
$2 – $50 per round |
Used in machine guns, vehicle-mounted weapons; influenced by modernization programs. |
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Large Caliber Ammunition |
$10,000 – $50,000 per shell |
Guided shells cost more due to GPS/laser systems; advanced electronics & materials. |
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Artillery Ammunition |
$5,000 – $20,000 per shell |
High demand in conflict zones; prices spike during wars. |
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Mortar Ammunition |
$500 – $5,000 per round |
Widely used in infantry support; cost varies by caliber. |
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Naval Ammunition |
$1,000 – $15,000 per round |
Specialized for warships; smaller market share but strategic importance. |
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Aircraft Ammunition |
$2,000 – $25,000 per round |
Includes guided bombs (> $40,000); critical for air superiority missions. |
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In terms of type, large caliber ammunitions segment is estimated to hold the highest share of the market of 33.8% in 2025 owing to its vital role in modern warfare. These munitions are used in various artillery systems and provide long-range and highly destructive fire support against targets. Their ability to deliver heavy payloads over extended distances makes them a preferred choice for military forces seeking strategic dominance on the battlefield.
For instance, in December 2024, ZVS Holding, which is part of the Czechoslovak Group, started making high-quality large-caliber ammunition and declared that Tatra vehicles would be made in Slovakia. The move comes after a record contract award, which strengthens Slovakia's defense industry and illustrates that CSG is becoming more important as a supplier of advanced artillery and armored vehicle solutions across Europe.
In terms of product, small arm ammunition segment is estimated to hold the highest share of the market of 35.9% in 2025 owing to its ubiquitous role across the military and commercial sectors. These munitions are used extensively by infantry forces worldwide in weapons like rifles, pistols, sub-machine guns, and combat shotguns. Their affordability and versatility make them a default choice for frontline troop weaponry.
For instance, in June 2025, A small arms ammunition unit is going to be set up in Amravati, Maharashtra, by TEMBO Defence, a subsidiary of TEMBO Global. The plant will make bullets for rifles and pistols with an investment of ₹1,000 crore and 100 acres of land. It is Vidarbha's first bullet-making factory, and it is working with a European company to do so. This will help India make more defense products.
In terms of application, defense segment is estimated to hold the highest share of the market of 39.1% in 2025owing to continuous geopolitical conflicts and territorial disputes worldwide. Military forces remain the largest end-user of all types of ammunition due to strategic operational needs. Most national defense budgets allot highest funding for ammunition stockpiling.
Escalating India-Pakistan tensions, South China Sea conflicts and renewed Sino-American rivalry fuel ammunition procurement. With threats of war ever-present, defense agencies prioritize maintaining ample strategic reserves. Meanwhile recent tensions in East Europe and Middle East have seen arsenal replenishment across the said regions. Unpredictable crises thus drive governments to expand ammunition manufacturing/import capacity.
For instance, in November 2025, The US provided India permission to receive missiles and ammunition, which are going to assist them get ready for war. This approval makes military stockpiles stronger and makes them more ready to act. The move shows how much India and the US are working together on defense, making sure that India has the supplies it needs to keep its capabilities up and its strategic position strong in the face of changing security threats in the region.
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North America is expected to account for the greatest revenue share, with 32.9% in 2025 In North America, the dominance in the ammunition market can be attributed to the presence of leading global players like Vista Outdoor and Olin Corporation. The region's advance defense capabilities further boost demand. With pro-gun laws and large shooting community, countries like the U.S. provide a fertile ground for market growth.
For instance, in December 2025, The US granted Canada the go-ahead for purchasing $2.68 billion worth of aerial weapons, such as advanced air-to-air and air-to-ground weapons. The deal makes Canada's defense stronger, makes it easier for Canada to work with its allies, and shows how well the US and Canada work together in NATO. It also strengthens regional security and military readiness by providing important ammunition.
The Asia Pacific region exhibits the fastest growth, driven by increasing defense spending of major economies like China and India. Growing geopolitical risks and modernization of armed forces is prompting governments to strengthen their ammunition stockpiles. Rapid economic development in Southeast Asian nations has also fueled the demand for sporting ammunition.
For instance, in December 2025, the US provided Taiwan a huge arms package that included missiles, ammunition, and defense systems. The deal makes Taiwan's military stronger, makes it harder for regional threats to happen, and shows that the US is committed to Taiwan's security. Ammunition is an essential element of the package that makes defenses stronger and more flexible.
The U.S. market continues to be leading global force underpinned by Second Amendment rights and new product innovations from key suppliers. Companies such as Remington Outdoor are enhancing their product lines to leverage opportunities. For instance, in December 2025, Through CBC USA, CBC Global Ammunition sells small, medium, and large-caliber ammunition to the military, police, and civilians. It makes NATO and SAAMI-standard rounds and sells them in 100 countries around the world. This makes it a top international maker of defense and commercial ammunition solutions.
China's market is expanding rapidly in line with the country's assertive defense policies. Domestic player, Norinco, is investing heavily to localize production and supply military programs. For instance, in August 2025, The PHL-16 multiple rocket launcher from China is similar to the US HIMARS and gives China more long-range strike power. It makes China's regional deterrence in East Asia stronger by using large-caliber rockets and guided munitions. The system shows that Beijing is focused on getting ready for modern warfare with advanced artillery platforms and ammunition.
Indian continues to lead ammunition procurement in South Asia supported by large-scale defense modernization drives. Companies like OFB and Solar are stepping up activities to fulfill requirements of security forces. For instance, in October 2025, India's Defense Ministry permitted private companies make missiles and ammunition, which is going to assist the country make more defense products. The move makes South Asia's defense system stronger, encourages new ideas, and makes the region less dependent on imports. India wants to improve its capabilities, readiness, and strategic manufacturing base by working with private businesses.
Germany's market is fueled by demand from law enforcement and export opportunities in Europe. Major players like Rheinmetall and Ruagare leveraging their engineering capabilities. For instance, in August 2025, Germany's Rheinmetall has opened a new factory to make more artillery shells and other weapons. The facility helps fill gaps in supplies caused by the war in Ukraine, makes NATO's supply chains stronger, and makes Europe's defenses stronger. It is a strategic step toward getting reliable ammunition for security needs in the area.
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| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 32,103.4 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 3.2% | 2032 Value Projection: | USD 40,050.0 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Poongsan Corporation, Alliant Techsystem, Inc., MaxamCorp Holding, Olin Corporation, Nammo AS, CBC Group, BAE Systems, and Rosoboronexport |
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| Growth Drivers: |
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| Restraints & Challenges: |
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With rising geopolitical tensions and security threats across various regions, many countries are significantly ramping up their defense spending in recent years. The focus on modernizing armed forces with latest weapons and platforms has led to growing demand for ammunition. The U.S., for instance, has witnessed steady growth in its defense budget over the past decade due to lengthy military campaigns in West Asia and renewed strategic competition with China and Russia. It is expected to remain one of the largest ammunition importers globally to sustain ammunition stockpiles of its army units.
Shooting sports and hunting significantly boost ammunition market demand by driving consistent consumption of cartridges and rounds. Enthusiasts and hunters require regular supplies for practice, competitions, and seasonal activities. This sustained usage fuels growth, encourages innovation in specialized ammunition, and strengthens the commercial sector of the global defense industry.
The global ammunition market has a huge untapped opportunity in the development of less lethal and non-lethal ammunition. With growing emphasis on safety and restraint, military and law enforcement agencies are showing interest in adopting alternative ammunition that can temporarily incapacitate a target without risk of serious injury or death. Leading manufacturers can gain a competitive edge by investing in R&D to create innovative ammunition like rubber bullets, tear gas shells, acoustic hailing devices, etc. catering to this niche segment.
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About Author
Suraj Bhanudas Jagtap is a seasoned Senior Management Consultant with over 7 years of experience. He has served Fortune 500 companies and startups, helping clients with cross broader expansion and market entry access strategies. He has played significant role in offering strategic viewpoints and actionable insights for various client’s projects including demand analysis, and competitive analysis, identifying right channel partner among others.
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