The Asia-Pacific Ammunition Market size is estimated at USD 2.57 billion in 2024, and is expected to reach USD 3.26 billion by 2029, growing at a CAGR of 4.83% during the forecast period (2024-2029).
In recent years, defense expenditures in Asian countries such as China, India, South Korea, and Japan have significantly grown. Increasing political disputes among neighboring countries, rising cross-border conflicts between China, India, and Pakistan, and increasing terrorist activities lead to a growing focus on strengthening defense capabilities, which in turn creates the demand for weapons and ammunition.
An increased demand for advanced weapons and ammunition helps improve defense capabilities and soldiers’ security. Small-caliber ammunition is widely used for civilian applications such as hunting, sports shooting, and personal protection, while medium-and large-caliber ammunition is used for defense applications.
Asian countries are highly investing in modernizing their armed forces and upgrading their weaponry and ammunition. As military technology evolves, there is a need for compatible ammunition that can be used with advanced weapon systems. The allocation of defense budgets by various Asian countries directly impacts ammunition procurement. Higher defense budgets can lead to increased ammunition purchases to maintain and enhance military capabilities. On the other hand, technological limitations for production and stringent government regulations hampers market growth.
The Asia-Pacific ammunition market is semi-consolidated, with several local and global players holding significant shares in the market. Some of the major players in the market are Rheinmetall AG, BAE Systems PLC, Poongson Corporation, Singapore Technologies Engineering Ltd, and General Dynamics Corporation.
The companies are currently focusing on designing and developing advanced ammunition for defense forces. In August 2022, the Indian Navy received the first-ever fully made-in-India 30-mm ammunition. Economic Explosives Ltd developed the ammunition expected to be used in the AK-630 guns fitted on warships. Countries like China, India, South Korea, Singapore, and Indonesia support local players to facilitate the requirements of their armed forces and law enforcement agencies, driving the market's growth.
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