Ammunition Market Forecasts to 2028 – Global Analysis By Calibre (Small Calibre, Medium Calibre and Other Calibres), Product (Grenades, Mortars and Other Products), Component (Projectile, Cases and Other Components), Guidance (Non-guided and Guided), Leth

Ammunition Market Forecasts to 2028 – Global Analysis By Calibre (Small Calibre, Medium Calibre and Other Calibres), Product (Grenades, Mortars and Other Products), Component (Projectile, Cases and Other Components), Guidance (Non-guided and Guided), Lethality (Less-lethal and Lethal), End User and Geography

According to Stratistics MRC, the Global Ammunition Market is accounted for $23.51 billion in 2022 and is expected to reach $31.87 billion by 2028 growing at a CAGR of 5.2% during the forecast period. Ammunition is any substance that is fired, scattered, dropped, or exploded by any weapon, such as bombs or rockets, and particularly shot, shrapnel, bullets, or shells fired by guns. Ammunition is usually coloured in a specific way to aid in identification and to avoid the incorrect ammunition types from being used accidently. Ammunition is both a disposable weapon and the component elements of other weapons that provide the desired effect on a target. It is available in a wide variety of sizes and types, and is frequently designed to work solely in specific weapon systems. However, certain ammunition types have internationally recognised standards that allow them to be used in a variety of weapons and by a variety of users.

According to SIPRI, worldwide military spending surpassed USD 1,800 Bn in 2018, also an increase of around 2.5 percent over previous year.

Market Dynamics:

Driver:

Growing personal safety concerns and increasing shooting ranges

Ammunition is typically used in pistols, shotguns, and rifles of various calibres. The increasing procurement of small calibre munitions by people for personal safety, as well as the growing number of shooting ranges, will boost market expansion. Increased terrorist activity and major shootings are increasing personal safety, which is driving demand for firearms. Expansion of the shooting ranges industry owing to terrorism raised concerns about stronger gun control regulations, and political hyperbole would drive market expansion.

Restraint:

Imposing gun control legislation from different government agencies

The strict government laws and regulations governing the use of firearms are a major impediment to the global market's expansion. Following the Christchurch shooting, New Zealand's government changed its firearms restrictions. It established strong gun-control restrictions, such as requiring only licence holders to acquire firearms and conducting extensive background checks. Furthermore, following the Port Arthur Massacre mass shooting incident that murdered 35 people, the Australian government banned civilian ownership of semi-automatic and fully automatic rifles. The market's expansion will therefore be hampered by the aforementioned limitations.

Opportunity:

Political conflicts, geopolitical tensions, and cross border issues in various countries

The increasing occurrence of geopolitical tensions, political unrest, and cross-border wars, particularly in the Middle East and Asian countries, will necessitate the strengthening of military forces. Military expansion and increasing procurement of small, medium, and large-calibre ammunition would propel the global market forward. Large calibre ammunition is primarily utilised in defence forces for combat activities in various countries, including Japan, Russia, and South Korea. Furthermore, manufacturers are boosting their R&D investment in order to develop technically improved ammunition, which is fuelling market expansion.

Threat:

Proliferation of illicit ammunition manufacturers

The proliferation of illicitly made ammunition is a huge issue that concerns the security of several governments throughout the world. It entails the production or assemblage of ammunition, explosives, and other associated materials using components that have been illegally transported or do not have government insignia. Such unauthorised ammunition is frequently moved and smuggled across international borders. It not only becomes a source of terrorist operations, but it may also be used to replace branded ammunition in a variety of other uses, negatively impacting demand for branded ammunition.

Covid-19 Impact

The COVID-19 had a negative influence on the ammunition industry due to the rigorous lockdowns and social distance implemented to contain the virus's transmission. Economic instability, a partial corporate shutdown, and low consumer confidence all had an influence on demand for airborne radar systems. During the pandemic, the supply chain was disrupted, as were logistics efforts. However, due to the relaxation of regulations, the ammunition market is projected to pick up speed in the post-pandemic scenario.

The small calibre segment is expected to be the largest during the forecast period

The small calibre segment is estimated to have a lucrative growth, due to a wide array of small-calibre ammunition applications including shotgun pistols, assault rifles, rifles, and revolvers. Furthermore, the category is expected to develop at the quickest rate throughout the projected period due to increased demand from security forces to address the rising number of violent conflicts. Also, the opening of online markets for small guns and ammunition, as well as increased acquisition of small calibre ammunition by the defence and homeland security sectors in order to reduce rising incidences of armed conflict, are all contributing to the segment's growth.

The aerial bombs segment is expected to have the highest CAGR during the forecast period

The aerial bombs segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increasing focus on upgrading air force inventory armed forces. Rising defence spending, expanding geopolitical crises, and advanced product development are propelling the worldwide ammunition industry forward. Increased awareness of security challenges, as well as the significance of bolstering military capabilities, has prompted governments to invest more in defence contracting, which is projected to fuel revenue growth in this segment.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to rising instances of terrorism and growing number of drug cartels in Central America. Furthermore, the increase in sports and hunting activities is projected to be a key contributor in growth. Due to increasing demand from the United States, the North American bullets industry is likely to increase significantly. The defence expenditure in North America has expanded, which has a substantial impact on the region's munitions market. The United States Department of Defense's long-term competitive strategy for the development of technology and new notions of warfare is projected to promote market growth.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the expansion of military forces in countries such as China, India, South Korea, and others. Rising geopolitical tensions and the growing potential of terrorist attacks are the key drivers of Asia Pacific defence industry expansion. Countries such as China and India are investing in the upgrading of their military forces in order to combat violence. To combat the rising crime rate, these countries purchase ammunition for their armed forces and law enforcement agencies. During the projected period, these factors are expected to boost market demand.

Key players in the market

Some of the key players profiled in the Ammunition Market include Jageman Stamping Co., Winchester Ammunition, Inc., Starline Brass, Inc., Hornady Manufacturing Company, Inc., Northrop Grumman Corporation, Olin Corporation, General Dynamics Corporation, BAE Systems, Inc., Hanwha Corporation, ST Engineering, Rheinmetall Defense, Nexter KNDS Group, Vista Outdoor Operations LLC, MAXAMCorp Holding, S.L., Nosler, Inc., Sierra Bullets, Ammo, Inc., CBC Ammo LLC, Nammo AS, Poongsan Corporation

Key Developments:

In May 2022, Rheinmetall AG announced to expand by supplying ammunition systems and 40mm weapons to the Spanish armed forces for four years. The contract is to supply 40mm x 53 high velocities, high explosive dual purpose ammunition, and training ammunition. These are used in Mk 19 and SB-40 LAG grenade machine guns with a velocity of 240 m/s and a range of 2200 meters for army and navy people.

In December 2020, Nammo AS signed a strategic partnership agreement with the Finnish Defense Forces (FDF) to deliver ammunition, explosives, and charges to the military. The arrangement is a continuation of the past supply understanding endorsed in 2014 and is required to stay in power until additional notification. The all-out esteem is required to be about USD 24.45 million (EUR 20 million) every year. The organizations are putting resources into the turn of events and assembling cutting-edge accuracy-directed ammo that can successfully assault the objective with restricted blow-back.

In July 2020, Northrop Grumman Corporation tied down an agreement from the US Army to convey the cutting-edge airburst cartridge for the 30mm XM813 Bushmaster Chain Gun. The Bushmaster Chain Gun will be introduced on the Stryker Infantry Carrier Vehicle (ICV).

In March 2020, BAE Systems got an agreement from the US Army to supply progressed BONUS weapons. The reward is 155-millimeter ammo intended for obliterating heavily clad targets and will be utilized by the Army’s armada of M109 self-impelled howitzers and M777 super lightweight towed howitzers. These conveyances are relied upon to begin in 2021.

Calibres Covered:
• Small Calibre
• Medium Calibre
• Large Calibre
• Rockets & Missiles
• Other Calibres

Products Covered:
• Grenades
• Mortars
• Artillery Shells
• Bullets
• Aerial Bombs
• Other Products

Components Covered:
• Projectile
• Cases
• Fuses & Primers
• Gun Powder
• Other Components

Guidances Covered:
• Non-guided
• Guided

Lethalities Covered:
• Less-lethal
• Lethal

End Users Covered:
• Civil & Commercial
• Defense

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements