Ammunition Market Size By Caliber (Small Caliber, Medium Caliber, Large Caliber, Artillery, Mortar), By Application (Defense, Civil), Industry Analysis Report, Regional Outlook, Growth Potential, Regulations, Competitive Market Share & Forecast, 2016 – 2025

Published Date: Jan 2017  |  Report ID: GMI261  |  Authors: Kiran Pulidindi, Hemant Pandey

Report Format: PDF   |   Pages: 110   |   Base Year: 2015




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Ammunition Market size valued at USD 9 Billion in 2015 and is estimated to grow at 2.8% CAGR from 2016 to 2025.
 

U.S. Ammunition Market, By Caliber, 2015 & 2025, (USD Million)

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Increasing cross border disputes across the globe will primarily drive the ammunition market size over the forecast period. The military organizations are expanding their artillery reserves to face conflicts with the neighbouring nations. In January 2019, the U.S. Army announced to increase the battlefield troops by around 1,500 units to be stationed in Germany and Baumholder. Upsurge in military troop size will induce significant growth potential in the industry landscape.
 

Rising participation of private industry participants will boost the market growth. In December 2016, the Ministry of Defense (MoD), India announced to encourage the private sector to manufacture ammunition under the Make in India initiative. The organization issued Request for Information (RFI) for participation in the USD 400 million program for manufacturing ammunition for T-72 and T-90 tanks, Strella air defense system, grenade launchers, rocket launchers, armoured vehicles and howitzers.
 

Industry participants are expanding their manufacturing capability and service network to serve larger consumer base. According to the Stockholm International Peace Research Institute (SIPRI), in 2017, the arms sales by the Russian manufacturers surged by over 8% as compared to 2016. The defense organizations are adopting advanced arms and ammunitions to modernize the armed forces thereby driving the industry growth.
 

Increasing defense spending to strengthen the forces and gain advantage will enhance the ammunition market share. According to SIPRI, in 2018, the global military expenditure rose to over USD 1,800 billion with an increase of around 2.5% as compared to 2.5%. Implementation of new arms procurement programs in the countries including the U.S., China, Saudi Arabia and India will drive the product demand over the study timeframe.
 

Ammunition Market Report Coverage
Report Coverage Details
Forecast Period 2016 to 2025 CAGR: 2.8% Value Projection: 11.5 Billion (USD)
Pages: 110 Tables, Charts & Figures: 148
Geographies covered (17): U.S., Canada, UK, Germany, France, Italy, Russia, Japan, China, India, South Korea, Mexico, Brazil, Saudi Arabia, UAE, Israel, Africa
Segments covered: Caliber, Application and Region
Companies covered (16): Ruag Ammotech, BAE Systems, CCI, Denel, Federal Premium Ammunition, General Dynamics Corporation, Global Ordnance, Hornady Manufacturing, Magtech, Maxam, Nammo AS, Nexter Munition, Olin Corporation, Orbital ATK Inc., Poongsan Corporation, Remington Arms Company
Growth Drivers:
  • Rising terrorism
  • Escalating arms race in Asia Pacific, MEA
  • Increasing recreational & leisure activities like hunting and shooting
Pitfalls & Challenges:
  • Stringent government norms
  • Environmental concerns

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By Caliber

Rising demand for smart weapons is anticipated to propel medium calibre ammunition market size over the forecast period. Factors including armor penetrating incendiary, target practice tracer, high explosive dual purpose with self-destruction grenades are driving the segment growth. Increasing incidences of cross border intrusions, terrorist activities, surging defense budget & FDIs, and indigenization of defense and military armoires will expand the industry landscape.
 

Growing popularity of sport-shooting and hunting will propel the small calibre product demand. Increasing application scope of these ammunition for civil and defense purposes is anticipated to industry growth. In addition, growing demand for personal and home defense firearms is expected to augment the segment size.
 

Increasing upgradation initiatives undertaken by various governments will drive segment growth. Defense organization are continuously focusing on upgradation of existing firearms and the introduction of newly advanced models including self-propelled howitzer. These factors are likely to support ammunition market growth.
 

Mortar segment will foresee substantial growth with the ongoing product advancements. For instance, Mortar AntiPersonnel Anti-Materiel (MAPAM) concept offers superior fragmentation effect in the case of high explosive ammunition. Further, the U.S. Army Armament Research, Development & Engineering Center introduced Ammunition Resupply Projectile that can be packed with ammunition of 5.56mm rounds for the Army's M4A1 carbine.
 

By Application

China Ammunition Market, By Application, 2015, (USD Million)
China Ammunition Market, By Application, 2015, (USD Million)

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Rising conflicts among neighbouring countries will drive the ammunition market growth. The military organisations are establishing contract with ammunition suppliers to ensure maintenance of reserves. In July 2019, UK Ministry of Defence (MoD) signed agreement with Rheinmetall for infantry ammunition. Moreover, growing demand for guns, artillery, rockets, and missiles, is estimated to escalate the ammunition demand.
 

Civil segment holds significant share owing to increasing product portfolio. In January 2019, Black Hills Ammunition introduced sharp edged ammunition for handguns for personal use. Increasing arms ownership by individuals to ensure safety will drive the segment penetration. Further, rising personal conflicts and political tension will escalate the industry size.
 

By Region

Europe Ammunition Industry Size, By Country, 2025, (USD Million)
Europe Ammunition Industry Size, By Country, 2025, (USD Million)

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Europe holds significant share owing to presence of major arms manufacturers. As per SIPRI, in 2017, the Western European manufacturers accounted for over 23% share in the arms sales. In 2017, the weapon sales of industry participants such as BAE Systems surged by over 3% as compared to 2016. Asia Pacific holds substantial share and will foresee strong growth with regional tension with Middle Eastern countries.
 

Increasing defense spending across the region will drive the North America ammunition market growth over the study timeframe. In 2015, the U.S. Government allocated around USD 600 Billion for military spending in the National Priorities Project. Presence of major arms manufacturers such as Lockheed Martin in the region will drive the product demand. Further, emergence of regulations to ensure safe usage of arms and ammunitions positively influence the industry size.
 

Competitive Market Share

Major ammunition industry participants include Raug Ammotech, BAE Systems, CCI, Denel, Federal Premium Ammunition, General Dynamics Corporation, Global Ordnance, Hornady Manufacturing, Magtech, Maxam and Naxtar Munition. Industry participants are expanding the product portfolio to meet surging demand. For instance, In November 2016, Federal Premium Ammunition announced to spend over USD 30 million for expanding and upgrading the Anoka facility.
 

Industry Background

Federal and state regulation govern the manufacturing, distribution and licensing of the ammunition. For instance, U.S. Firearms and Ammunition Law regulates the shipping, transportation, receiving and possession of firearm and ammunition. Further, it validates the license and permit for hunting and sporting purpose. Restriction on possession of arms and ammunition to reduce causalities will hinder the product adoption.
 


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