Ammunition or ammo is gunpowder which is used to project force against a chosen target. It is used in weapons, propellants, explosives, high explosive projectiles, cartridge systems, carrier projectiles, small arms ammunition, grenades, mines, pyrotechnics, terminally guided munitions, and improved conventional munitions, among others. The ammunition market can be classified on the basis of ammunition types such as large-caliber ammunition, medium caliber ammunition, small caliber ammunition, aircraft ammunition, and artillery ammunition among others. Different ammunition products include missiles, small arms ammunition, torpedoes, warheads, and grenades among others.
Market Statistics:
The global ammunition market is expected to surpass US$ 11,489.3 Mn in terms of value by the end of 2028.
Market Drivers
Increase in the military budget by Russia and Middle Eastern countries is expected to propel the global ammunition market
For the purpose of security, Russia, the Middle East, and the Asian region have started investing a considerable amount in ammunition. In 2013, the Russian Parliament announced that it would increase its spending on nuclear weapons by 50% by 2016. It is expected that the country would spend approximately US$ 1.4 billion on nuclear weapons in 2016. Moreover, Asian countries such as Japan would also boost their military expenditure by 5% in the coming five years. In December 2013, Japanese Prime Minister Shinzo Abe sanctioned US$ 203,940 trillion to be spent on military hardware in the coming years. Countries safeguard themselves from future conflicts by such ammunition investments. Hence, these factors are expected to drive growth of the global ammunition market during the forecast period.
Market Opportunity
Development of lightweight ammunition can present lucrative growth opportunities
Earlier, ammunition was very heavy to carry for long durations and this affected the fighting capabilities of soldiers. There was a need to decrease the size of the caliber so that more ammunition could be carried which would make shooting more comfortable. As a result, lighter and smaller bullets were made which decreased the bullet performance. New cartridges such as the 6.5 mm Grendel were developed to meet these inadequacies. They used larger case than 5.56 and also maintained the overall length. Hence, without completely redesigning the gun, it could be fired out of AR15 platforms. Caseless ammunition had also been experimented with. The MetalStorm system and the Heckler & Koch G11 rifle using the 4.73x33 mm ammunition are examples of caseless ammunition.
Global Ammunition Market: Recent Developments:
In April 2021, Rheinmetall and Northrop Grumman enters into a partnership to co-operate on the field of precision-guided enhanced range artillery ammunition.
In January 2021, a NATO has awarded a contract to Rheinmetall for the manufacturing of modern artillery ammunition.
In July 2020, Northrop Grumman Corporation was recently awarded a contract from the U.S. army to supply XM813 Bushmaster Chain Guns as part of the Stryker Medium Caliber Weapon System 30mm Lethality Upgrade program.
Market Restraint
Changing economic, political, and legal regulations is expected to hamper the global ammunition market growth over the forecast period
Countries around the world have different political, economic, and legal regulations when it comes to ammunition trade. Since these regulations vary according to each country and are subject to change, the demand for ammunition may fluctuate. Hence, these factors are expected to hamper the global ammunition market growth over the forecast period.
Global Ammunition Market - Impact of Coronavirus (Covid-19) Pandemic
The Covid-19 pandemic has adversely impacted the ammunition market. In United States of America, from 3 January 2020 to 5:36pm CEST, 13 September 2021, there have been 40,675,578 confirmed cases of COVID-19 with 653,099 deaths, reported to WHO. As of 9 September 2021, a total of 379,082,955 vaccine doses have been administered. Restricted movement and lockdowns have led to decrease in sales in hunting and gun shops. As a result, the manufacturing of guns and ammunition has faced a negative impact.
Key Takeaways:
- The global ammunition market was valued at US$ 10,239.5 Mn in 2020 and is forecast to reach a value of US$ 11,489.3 Mn by 2028 at a CAGR of 1.31% between 2021 and 2028.
- The larger caliber ammunitions segment was valued US$ 3446.96 Mn in 2020 and is expected to witness a CAGR of 1.39% over the forecast period.
Market Trends
North America Trends
Among regions, North America is expected to witness significant growth in the global ammunition market during the forecast period. This is owing to rising military ammunition programs in Canada. Furthermore, rising terrorist activities across the region are expected to boost the regional market growth over the forecast period.
Europe Trends
Europe is expected to register a robust growth rate in the global ammunition market over the forecast period. This is owing to rising procurement of new generation ammunition by law enforcement agencies. Furthermore, rising cross-border conflicts are expected to accelerate the regional market growth in the near future.
Competitive Section
Key players operating in the global ammunition market are Poongsan Corporation, Alliant Techsystems, Inc., MaxamCorp Holding, S.L., BAE Systems plc, Nexter Group, Denel SoC Ltd., Rheinmetall AG, Diehl Stiftung & Co. KG, CBC Group, and Hellenic Defense Systems S.A. (EBO-PYRKAL).
