Mortar Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Mortar Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mortar Ammunition Market was valued at USD 74.25 million in 2021 and is projected to grow to USD 120.98 million by 2031 registering a CAGR of 4.9% during the forecast period (2022-2031).

The impact of COVID-19 on the overall market revenue is deemed to be less. However, the lockdown imposed by the governments in the major countries has caused disruptions in the supply chain which led to manufacturing delays in 2020. On the other hand, although the overall global defense spending is on an increasing trend till 2020, developing countries that are facing an economic crisis might opt for a reduction in defense spending levels in the coming years, which might hamper the procurement of new mortar systems and related ammunition.

Several countries are expending significant resources toward augmenting their current military prowess, by procuring new weapon systems or modernizing their existing deployed systems with advanced ammunition rounds. The growth in territorial issues has also propelled the procurement of mortar systems by the land forces over the years.

Mortars are now witnessing rejuvenated demand due to new technology integration and enhanced scope of deployment by both infantry and artillery units of global armed forces. Several new mortar development programs are underway to develop lighter but deadlier mortar ammunition with an enhanced range. Furthermore, investments are being made into development of precision guided mortar ammunition. Such investments are anticipated to open new prospects for the market in the coming future.

Key Market TrendsHeavy Caliber Segment is Expected to Witness Highest Growth During the Forecast Period

The heavy-caliber segment of the market is expected to witness the highest growth during the forecast period. Mortar ammunition with a caliber size of 100 mm and above are classified as heavy caliber mortars. Conventional heavy-caliber mortars have a range of 7,200m to 9,500m and can carry an explosive payload of 1.2kg to 4.2kg, depending on the size of the mortar. Heavy mortars are generally used to level enemy strongholds and decommission armored vehicles. Several nations across the globe have procurement programs underway as part of their extensive weaponry modernization program. For instance, in November 2021, the Estonian National Defense Investment Centre announced that it has ordered an undisclosed number of 120mm mortar systems from the sole bidder Elbit Systems of Israel, under a framework agreement worth up to USD 17.27 million. As part of the contract, Elbit will also provide lifecycle support for the systems with the Estonian Army. The rise in demand has fostered extensive innovations in the heavy caliber mortar segment. For instance, in March 2021, Israel unveiled a laser-guided mortar system that could reduce civilian collateral damage, according to the company. The Iron Sting system, developed by the Israeli military with local firm Elbit Systems, will use laser and GPS technology to provide maximal accuracy to 120mm mortar rounds. Such developments and procurement orders of advanced munitions is expected to accelerate the growth of this segment during the forecast period.

Asia-Pacific Accounted for a Major Share in the Mortar Ammunition Market in 2021

The Asia-Pacific region is currently dominating the market and is expected to continue its dominance during the forecast period. Countries in the region such as China, India, and South Korea among others have been rapidly increasing their military spending over the past few years due to the ongoing geopolitical tensions in the region. China and India have increased their military expenditures by more than 25% and 30%, respectively during the period of 2015 – 2020. With such a growth in defense expenditure, these countries have been investing in the development and procurement of newer generation mortar systems and related ammunition. In March 2021, the Indian Army decommissioned two of the longest-serving artillery systems, the 130mm self-propelled M-46 catapult guns and 160mm Tampella Mortars from service, to make way for newer equipment employing the latest technologies. The procurement of new mortar systems is also expected to generate demand for related ammunition during the forecast period. The growing focus on indigenous development of mortar systems is projected to drive the growth of the market in the region. In July 2021, the Republic of Korea Army (RoKA) has begun deploying an upgraded version of its locally developed 81 mm mortar system. The mortar system uses advancec technologies like laser and Global Positioning System (GPS) to identify the target locations and calculate the mortar settings, thereby increasing the speed and accuracy with which rounds can be delivered. Along with the procurement of advanced mortar systems, countries are also acquiring advanced ammunition for the mortar systems. In April 2019, Elbit Systems announced that it was awarded a contract worth USD 30 million to supply STYLET, a precise Guided Mortar Munition (GMM), to an undisclosed customer in Asia-Pacific region. The deliveries of the munitions were completed in 2022. STYLET is a multimode GPS/INS guided 120 mm GMM with a range of 1,000-8,500 m that is designed for tactical combat units and Special-Forces. Such investments and procurement of advanced precision guided mortar ammunition is anticipated to bolster the growth of the market in Asia-Pacific region during the forecast period.

Competitive Landscape

The major players in the mortar ammunition market are Elbit Systems Ltd, BAE Systems plc, Nammo AS, General Dynamics Corporation, and Saab AB. Companies are collaborating on the development of new ammunition and exploring new market opportunities. For instance, companies like Singapore Technologies Engineering Ltd, SAMI, and Hanwha Defense have entered into collaborations in recent years for producing different kinds of ammunitions including mortars. Such collaborations are expected to help them increase their market presence and share in global markets during the forecast period. Advancements in mortar ammunition capabilities, like range, precision, and lethality are the major factors for manufacturers to attract new customers, while the partnership with other manufacturers to locally produce munitions will allow them to enter new markets during the forecast period. Local players from several countries are expected to enter the market in the coming years, driven by the growing push for the localization of military equipment. This is expected to increase the competition in the market in the years to come.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Elbit Systems Ltd
General Dynamics Corporation
Nexter Systems SA
BAE Systems PLC
Rheinmetall AG
Saab AB
Nammo AS
Denel SOC Ltd
Hirtenberger Defence Systems GmbH & Co. KG
Singapore Technologies Engineering Ltd
Mechanical and Chemical Industry Company (MKEK)
ARSENAL JSCo.
Hanwha Corporation

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