APAC Medium & Large Caliber Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

APAC Medium & Large Caliber Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Asia-Pacific Medium And Large Caliber Ammunition Market size is estimated at USD 1.34 billion in 2024, and is expected to reach USD 1.69 billion by 2029, at a CAGR of 4.79% during the forecast period (2024-2029).

Geopolitical conflicts and border tensions among neighboring countries drive regional military expenditures. This surge in military spending leads to investments in new land, air, and sea platforms, subsequently boosting demand in the medium- and large-caliber ammunition markets.

The medium and large caliber ammunition market is poised for growth, primarily fueled by armed forces' procurement and upgrade activities to counter emerging threats. Several contracts are underway for naval vessels, military aircraft, helicopters, infantry fighting vehicles (IFVs), and armored personnel carriers (APCs) equipped with medium caliber turret guns. Furthermore, many new contracts will be awarded during the forecast period, creating a parallel demand for medium-caliber ammunition.

However, challenges such as high procurement costs and concerns like arms trafficking could dampen the market's potential. New technologies, particularly innovative concepts, come with steep costs, making them economically unfeasible without widespread adoption. Emerging technologies like programmable ammunition and loitering munitions hold the promise of radically shifting market dynamics.

Asia-Pacific Medium And Large Caliber Ammunition Market Trends

Large Caliber Segment is Expected Witness Highest Growth During the Forecast Period

The study focuses on ammunition ranging from 40mm to 155mm calibers. This encompasses all lethal and non-lethal types, including artillery and rockets, calibrated explicitly at 40mm, 52mm, 60mm, 80mm, 120mm, 130mm, and 150mm, and extending up to 155mm.

Political tensions, territorial disputes, and the ambition for global dominance among military powers are reshaping the geopolitical landscape. In response, governments typically ramp up military spending to bolster national security. Driven by the procurement of howitzers and artillery, the large caliber segment is seeing a surge in government investments. Meanwhile, Asia-Pacific nations are partnering with leading ammunition manufacturers to enhance their domestic defense capabilities.

Due to increased military activity along the Indo-Chinese and Indo-Pakistan borders, India has been deploying artillery and mortar weapons. In line with this, in November 2023, a tender under the 'Make in India' initiative was announced, seeking 200 new mounted howitzers with 105 mm caliber guns from Indian firms. Furthermore, in June 2022, Thales Australia and EXPAL Systems S.A. inked a deal to develop large-caliber naval munitions and fuses, bolstering support for the Australian defense force.

Japan, embroiled in long-standing island disputes with China and South Korea, is enhancing its naval capabilities. In January 2024, Japan secured a contract for 200 Block IV Tomahawks, 200 Block V Tomahawks, and 14 Tactical Tomahawk Weapon Control Systems, including training, maintenance, and ancillary services. These advancements and system procurements will drive segment growth in the coming years.

China To Dominate the Market Share During the Forecast Period

Growing military spending, fueled by geopolitical tensions and border disputes between China and its neighboring countries, drives investments into procuring various defense equipment, including ammunition. According to the data provided by the Stockholm International Peace Research Institute (SIPRI), China was the second-largest spender on its military in 2023, spending USD 296.4 billion.

China is the second-largest global military spender on arms and munitions and the largest spender in Asia-Pacific. The country has multiple state-owned and home-grown defense manufacturers that cater to the country's defense needs. Aviation Industry Corporation of China (AVIC), China Electronics Technology Group Corporation (CETC), China North Industries Group Corporation (NORINCO), and China South Industries Group Corporation (CSGC) are some of the significant domestic defense companies that provide China with the weapons and munitions that are required to carry out the country's military activities. China has prioritized its military and economic interests, recently leading to multiple security expansions. As part of these expansions, the country is venturing into geographical areas, causing international unrest and leading to military conflicts.

In addition, the country is expanding its military security to tackle the border conflict with India starting in 2020. Therefore, the government of China is investing in developing its military strength to tackle any adversary military actions. For instance, in February 2024, China showcased its newly developed ASN-301 loitering munition in Saudi Arabia. Designed to infiltrate adversary airspace, the ASN-301's primary function is to loiter until it picks up a radar signal. Upon detection, the ASN-301 targets the signal and precisely strikes. Equipped with a warhead containing 7,000 fragments, the munition is activated by a proximity laser fuse, ensuring a lethal radius of 20 meters.

Given these developments and the deployment of sophisticated weaponry, China's trajectory appears set for accelerated growth in the foreseeable future.

Asia-Pacific Medium And Large Caliber Ammunition Industry Overview

The Asia-Pacific medium- and large-caliber ammunition market is fragmented, with many regional players supporting various armed forces. Some prominent market players are Bharat Electronics Limited (BEL), Poongsan Corporation, Rheinmetall AG, Saab AB, and Singapore Technologies Engineering Ltd.

The international players in the market are forming partnerships with governments, constructing new production facilities, and increasing their presence in the region. The growth is subjective to several associative factors, such as allocating funds to procure new equipment. It may be adversely affected by the rapid technological advances resulting in the effective life of a newly developed technology. Local players have honed their technology and product design skills over the years, enabling them to offer ammunition of comparable quality at more competitive prices. This development challenges the growth of established regional players and is anticipated to heighten market competition during the forecast period.

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