Ammunition Market size is anticipated to reach USD 43 billion by 2030, according to a new research report by Global Market Insights Inc.
Growing number of cross-border conflicts and the rising gun demand for recreational shooting activities will drive the ammunition industry trend. In 2022 the invasion of Ukraine by Russia demonstrates the unstable international relations among a few countries. The rising Indo-China tensions and other conflicts in the Asian region will further create a need for reinforcing military forces. Increased spending in air force and naval expansion in the region will influence the demand for ammunition.
The global ammunition market share from the small caliber segment is projected to witness growth rate of around 4.2% through 2030, says the report. In countries including the U.S., Canada, South Africa, Mexico, and Germany, governments provide legal hunting licenses. Recreational hunting in these regions will fuel the demand for small-caliber bullets. Numerous sporting events that involve shooting will further expand product penetration.
The continuous rise in defense budgets across developed economies will augment the production of small caliber ammunition. In 2022, the U.S. Army Contracting Command handed a USD 145 million contract to Olin Winchester to produce .38, .45, and 9mm caliber bullets for the military. The agreement will be fulfilled by March 2027 and will enhance the pistol ammunition inventory for the U.S. army.
Browse key industry insights spread across 130 pages with 84 market data tables & 23 figures & charts from the report, “Ammunition Market Size By Ammunition (Small Caliber, Medium Caliber, Large Caliber, Artillery, Mortar), By Application (Defense, Civil), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Landscape & Forecast, 2022 – 2030” in detail along with the table of contents:
The research report predicts the ammunition industry revenue from defense applications to surpass USD 23 billion by 2030 due to the escalating number of cross-border encounters and regional terrorist activities. Growing tensions in the Middle East & Africa have encouraged countries to expand their fleet of fighter aircraft and required munition components. In February 2022, the U.S. State Department authorized the sale of advanced weaponry to Jordan, Saudi Arabia, and the UAE, subject to further consideration. If the deal passes final approval, Jordon will be able to purchase new fighter jets and any associated ammunition.
The Europe ammunition market share is estimated to record more than 4% gains through 2030 led by high defense budgets in countries such as Germany, France, Italy, and the UK. The Government of France recently proposed a USD 45 billion military budget for 2023. Smaller nations in the region are also bolstering their defense capabilities. For instance, in June 2022, Greece, which allocates over 2% of its GDP for defense, made a procurement request to the U.S. for 20 Lockheed Martin-made F-35 fighter jets owing to increased tensions with Turkey.
The report recognizes BAE Systems, Elbit Systems Ltd., CCI, Denel, Global Ordnance, NAMMO AS, Magtech, Nexter Group, Northrop Grumman Corporation, and Ruag Ammotech as prominent players in global ammunition industry. Increasing R&D investments, government contracts, regional expansion, mergers, and acquisitions are some of the key strategies adopted by companies to boost their revenue growth.