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Ammunition Market - By Product Type (Small Caliber, Medium Caliber, Large Caliber, Artillery, & Mortar), By Application (Defense, Civil) & Forecast, 2024 – 2032
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Ammunition Market
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Premium Report Details
Base Year: 2023
Companies covered: 14
Tables & Figures: 49
Countries covered: 22
Pages: 135
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Ammunition Market Size
Ammunition Market was valued at USD 30.6 billion in 2023 and is anticipated to register a CAGR of 5.6% between 2024 and 2032. Increasing terrorism activities and cross-border conflicts have heightened the need for ammunition as governments and military forces require more supplies for counter-terrorism operations and enhanced border security measures. These security challenges contribute significantly to the rising demand for ammunition.
For instance, according to the latest Global Terrorism Index (GTI), in 2021, the number of attacks had surged by 17% compared to the previous year.
Rising military budgets and defense expenditures globally are significantly boosting the demand for ammunition. Driven by escalating geopolitical tensions and comprehensive military modernization efforts, countries are increasing their defense spending to enhance their military capabilities and preparedness. According to the Stockholm International Peace Research Institute (SIPRI), global military spending reached approximately $2.4 trillion in 2022, underscoring the substantial investment in defense resources. This surge in expenditure reflects a broader trend of nations prioritizing military enhancements, which includes the procurement of advanced ammunition to support operational readiness and security objectives.
Additionally, the growing interest in sport-shooting and hunting among civilians is fuelling the market. As more individuals engage in these recreational activities, the demand for ammunition increases, driven by a rising number of enthusiasts and participants.
Strict regulations and controls on the manufacture, sale, and distribution of ammunition present significant challenges for the industry. Compliance with a complex web of national and international regulations can complicate operations and increase costs for manufacturers. Each country has its own set of laws governing the production, handling, and sale of ammunition, which can vary widely and change frequently.
Ammunition Market Trends
There is a growing demand for precision-guided ammunition, which enhances accuracy and operational effectiveness. Advances in technology have led to the development of smart ammunition with integrated targeting systems, significantly improving operational efficiency and reducing collateral damage in military and law enforcement applications.
Additionally, the rise in the adoption of advanced materials for producing lightweight ammunition is expected to have a substantial impact on the market. Lightweight ammunition contributes to fuel-efficient transportation, which reduces overall transportation costs. This trend allows for the transportation of more rounds within the same weight limits, thereby positively influencing market growth. Moreover, the integration of advanced materials and new technologies in ammunition production is anticipated to create fluctuations in ammunition price forecasts over time. These advancements, while enhancing performance, may lead to variations in production costs and pricing strategies within the market.
Ammunition Market Analysis
Based on Product Type, the ammunition industry is segmented into Small Caliber, Medium Caliber, Large Caliber, Artillery, & Mortar. The Small Caliber segment dominated the market in 2023, generating a revenue of USD 13 billion, and is expected to grow at a CAGR of 5.3% during the forecast period from 2024-2032. Various applications, such as shotgun pistols, assault rifles, rifles, and revolvers, drive the demand for small caliber ammunition. Moreover, as security forces respond to escalating armed conflicts, their growing demand for small caliber ammunition is anticipated to further boost its market growth.
Based on Application, the market is classified into Defense, and Civil. The Defense segment dominated the market in 2023, acquiring a market share of 56% and is expected to grow at a CAGR of 5.2% during the forecast period from 2024-2032. Ongoing geopolitical tensions and military conflicts are driving a substantial demand for ammunition, bolstering defense operations and national security. Furthermore, global military modernization initiatives are spurring the consistent procurement of advanced ammunition, ensuring arsenals are upgraded and readiness is maintained.
North America dominated the ammunition market generating a revenue of USD 12.7 billion of market share in 2023 and is expected to grow at a CAGR of 5.1% during the forecast period from 2024-2032. The growing threat of terrorism, combined with lenient gun laws, is expected to drive increased consumption of ammunition as both defense and civilian sectors seek to enhance security and preparedness. Additionally, the surge in sports and hunting activities is anticipated to play a crucial role in market expansion. As more individuals engage in recreational shooting and hunting, the demand for ammunition is expected to rise, further contributing to the market's growth.
China dominated the Asia Pacific ammunition market in 2023 acquiring a market share of 40.7% and is expected to grow at a CAGR of 7.1% during the forecast period from 2024-2032 due to the country's focus on advanced weapon system development, driven by intensifying geopolitical competition. Increasing rivalry with the U.S. in technology acquisition and development is expected to accelerate the advancement of weapon systems within China.
Germany dominated the Europe market in 2023, acquiring a market share of 23.1% and is expected to grow at a CAGR of 5.8% during the forecast period from 2024-2032 due to the extensive use of pistols, revolvers, rifles, shotguns, and combination guns for activities such as fishing, hunting, and sport shooting. This diverse utilization is expected to drive demand for small caliber and medium caliber ammunition in the country.
Ammunition Market Share
The ammunition industry, with prominent players, such as Northrop Grumman Corporation, CBC Global Ammunition, BAE Systems, Thales Group, holds a market share of ~50%. Manufacturers are adopting strategic steps, such as mergers, acquisitions, partnerships, and collaborations, to meet the growing consumer demand and consolidate their position in the market.
Ammunition Market Companies
Major players operating in the industry include:
Ammunition Industry News
The ammunition market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2018 to 2032, for the following segments:
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Market, By Product Type
Market, By Application
The above information is provided for the following regions and countries: