Ammunition Market Size

Ammunition Market Size

Ammunition Market size surpassed USD 29.3 billion in 2021 and is projected to expand at around 4.7% CAGR from 2022 to 2030.

Consistent rise in terror attacks worldwide and increased spending on defense modernization programs will augment the demand for various types of ammunition. According to the latest Global Terrorism Index (GTI), in 2021, the number of attacks had surged by 17% compared to the previous year. The rise in attacks represents the need for law enforcement and military agencies to maintain a robust arsenal for national security.

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In regions such as North America and Europe with strong defense capabilities, the adoption of modern equipment and infrastructure is growing. For instance, the Russia-Ukraine war in 2022 urged Germany to introduce a USD 112 million security fund to support the modernization of its military capabilities. Similar investments across the globe will boost the manufacturing of advanced weaponry and fighter aircraft, expanding the medium & large caliber ammunition industry share.

Government efforts to curb gun violence and public outrage against domestic attacks could act as barriers to the industry growth. A few countries in Latin America are looking to adopt stringent laws on gun ownership including nations where gun possession by civilians is legal. Increasing crime rates in developing countries may further impact weapon laws, hampering ammunition demand.