Service Handgun Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Service Handgun Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The service handgun market is projected to register a CAGR of more than 2% during the forecast period.

Key Highlights

• There is an increasing need to improve the police strength of many countries, globally. At the same time, most of the handguns used by the military personnel and the law enforcement agencies are old, outdated, and need to be replaced. The handgun procurement plans in this regard are driving the market.
• Increasing demand for light weapons and associated accessories is expected to propel the growth of the market for the service handguns in the coming years.

Key Market TrendsThe Pistols Segment to Dominate the Market in the Years to Come

The pistols segment is expected to have a larger market share in the service handgun market during the forecast period. Pistols generally have a larger bullet holding capacity of up to 17 rounds on a standard magazine, compared to revolvers, which have a very low bullet holding capacity. Also, pistols are more accurate compared to revolvers. These are the main reasons for the greater preference of militaries and law enforcement agencies for pistols over the revolvers. With the existing military handguns of the Armies dating back to the cold war times, the armies are replacing those handguns to newer models. For instance, in October 2019, the army of Portugal announced that it had selected Glock to supply special new Gen 5 G17 models to replace the country’s dated Walther military handguns. The contract follows the NATO Support and Procurement Agency (NSPA) tender launched in early 2019 for the Walther replacement. Likewise, the .38-calibre Taurus revolvers, used by the Singapore Police Force (SPF) frontline officers, are now being replaced by the semi-automatic pistols. This move is to give the police officers more powerful and accurate firearms to tackle heightened security threats. Such procurement and related plans are the main reasons for a larger share of the segment.

North America has the Largest Share in the Market as of 2019

As of 2019, North America has the highest share in the Service Handgun Market, primarily due to the replacement contracts which were awarded to the handgun manufacturers. Much of the demand from North America for the handguns are from the United States. The US has been the leading military spender in the world. The proposed Fiscal Year (FY) 2021 budget requested USD 740.5 billion for national security, out of which USD 705.4 billion is for the Department of Defense (DoD). The increase is expected to drive the implementation of new arms procurement programs, which are mainly focused on improving and upgrading the country's armed forces. In addition, the country is also focusing on increasing the military end strength by 5,600 in FY 2021 from the FY 2020 projected levels. The US Army is replacing its age-old pistols with newer ones. In 2015, the US Army launched its long-awaited XM17 MHS competition to replace its Cold War-era M9 9mm pistol. Following this, in 2017, Sig Sauer was awarded a contract worth USD 580 million by the US Army to produce the Army's next service pistol based on the company's P320 handgun. As per the 10-year agreement, Sig Sauer will supply the Army with both the full-size and compact versions of the gun. Such procurement is driving the revenues for the market in North America currently. However, the market is projected to witness the highest growth rate in Europe due to the anticipated increase in the procurement of service handguns for the law enforcement agencies of several countries in the region. The rise in crime rates in France has influenced the government to arm all the local cops with guns. The country has already witnessed an increase in the usage of semi-automatic pistols in the last three years. Such developments are expected to drive the growth of the market in Europe.

Competitive Landscape

GLOCK GmbH, SIG SAUER, Sturm, Ruger & Co. Inc., FN HERSTAL, and CZUB are some of the major players in the market. As most of the contracts awarded in the market comprise large procurement with higher volumes, companies may benefit from higher revenues per contract. At the same time, there is intense competition between the players for service handguns contracts. Companies that provide durable products that pass every testing phase by the contracting agency will end up gaining long-term contracts in the market. In addition, ergonomics is also taken into consideration while selecting and finalizing a particular product. As such, the focus should be on building long-lasting, accurate, ergonomic products with high quality. Competitive pricing will also help the players gain new contracts, thereby enhancing their market share and market presence.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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