Ammunition Market Size to Hit $69.75 Billion, Globally, by 2028 | Exclusive Report by The Insight Partners
Ammunition Market is growing at a CAGR of 8.4% from 2022 to 2028.
Pune, India, Nov. 03, 2023 (GLOBE NEWSWIRE) — According to The Insight Partners, “Ammunition Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars, and Others), Application (Defense and Commercial), Guidance (Guided and Non-Guided), Lethality (Non-Lethal and Lethal), and Caliber [Small Caliber Ammunition (5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, .45ACP, 338LM, 22LR, .223 Rem, and .308 Winchester), Medium Caliber Ammunition (20mm, 30mm, 40mm, and Others), and Large Caliber Ammunition (60mm, 105mm, 120mm, 150mm, and Others)], and Geography,” the market is expected to grow from US$ 43.04 billion in 2022 to US$ 69.75 billion by 2028; it is estimated to grow at a CAGR of 8.4% from 2022 to 2028.
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Global Ammunitions Market: Competitive Landscape and Key Developments
Northrop Grumman Corporation, BAE Systems, Elbit Systems Ltd, Raytheon Technologies Corporation, Vista Outdoor Operations LLC, AMTEC Corporation, NAMMO AS, Rheinmetall AG, RUAG Group, and Thales Group. are among the key ammunitions market players profiled in the report. Several other essential market players were analyzed for a holistic view of the ammunitions market and its ecosystem. The report provides detailed market insights, which can help major ammunitions market players plan their growth strategies.
In July 2022, BAE Systems was awarded a five-year contract extension by the US Army for operations at the Radford Army Ammunition Plant, with a contract-value of up to US$ 1.3 billion. The contract will be valid till December 2026.
In May 2022, Elbit Systems was awarded a contract worth ~US$ 27 million by the Swedish Defence Material Administration to provide the Swedish Armed Forces with M339 rounds, 120mm ammunition, and Data Setting Units. The contract will be valid for subsequent 10 months.
Global Ammunitions Market: Lethality Overview
Based on lethality, the ammunitions market is bifurcated into non-lethal and lethal. The lethal segment is expected to dominate the ammunitions market in 2022. The segment growth is attributed to the increasing procurement of infantry fighting vehicles, tanks, rocket launchers, combat aircraft and helicopters, grenade launchers, and small/medium/large-caliber guns and launchers. ammunitions market
Global Ammunition Market Scope:
|Market Size Value in||USD 43.04 Billion in 2022|
|Market Size Value by||USD 69.75 Billion by 2028|
|Growth rate||CAGR of 8.4% from 2022 to 2028|
|Segments covered||Product, Application, Guidance, Lethality, Caliber|
|Regional scope||North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America.|
|Country scope||Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
Based on geography, the ammunitions market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America. North America is expected to account for the largest ammunitions market share in 2022 wherein the US is expected to account for the largest ammunitions market share in the North America region. The US has the largest defense budget in the world, and a large amount of budget is accolated for the adoption and procurement of upgraded technologies, safety, and security provisions, etc., which further augment the ammunitions market growth in the country. According to SIPRI, the country’s military spending was 3.7% and 3.5% of its GDP in 2020 and 2021, respectively. In 2021, the US military spending was US$ 801 billion compared to US$ 778 billion in 2020. During 2012–2021, US funding for military research and development (R&D) increased by 24%. Thus, the rise in military expenditure favors the ammunitions market growth in North America region.
According to the SIPRI data, the military expenditure of the US was ~US$ 734 billion, US$ 778 billion, and US$ 800 billion in 2019, 2020, and 2021, respectively. Similarly, China spent ~US$ 240 billion, US$ 258 billion, and US$ 293 billion on its military in 2019, 2020, and 2021, respectively. Further, the rising tension among several countries is generating awareness about increasing military power and strengthening law enforcement power across different countries. For instance, the ongoing war between Russia and Ukraine & China and Taiwan, and constantly rising tensions between countries such as India and China, India and Pakistan, the US and Russia (Cold War situation), and Germany and Russia are generating huge demand for ammunitions across North America, Europe, and Asia Pacific. Moreover, since February 2022, most European countries have already announced their intentions of doubling their military budgets. In March 2022, Germany, Belgium, Romania, Italy, Poland, Norway, and Sweden announced an increase in their defense spending for 2023 due to the invasion of Russia in Ukraine. According to several defense sources, Germany announced that it would be spending an additional US$ 112 billion in its military expenditure in 2023.
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The ammunition industry is continuously exploring ways to evolve the most common small-caliber ammunition, such as 5.56mm and 7.62mm bullets. As a result, several vendors are focusing on finding ways to use new and advanced materials that provide more strength to the product with lighter weight capabilities. These materials can also reduce overall operational costs, improve product performance, and gradually address environmental concerns, thereby addressing the concerns associated with lead contamination, as every bullet that is fired from a gun releases some amount of lead into its surroundings. Such developments are catalyzing the demand for new and innovative ammunition solutions, and thereby driving the ammunitions market growth.
The rising demand for defense equipment from the military is expected to boost demand for ammunition as geopolitical tensions rise around the world. The Indian Army plans to increase the number of artillery and mortar platforms through domestic development programs and foreign procurement over the next decade, thereby meeting ammunition demand during the forecast period. Further, the ammunitions market is fragmented due to the presence of various actors supporting the defense sector. These players are focusing on different strategies to expand their product offerings and strengthen their geographic footprint. For instance, BAE Systems and the UK Ministry of Defense (MOD) have awarded a US$ 257.92 million contract in July 2021 to advance the design and development of Tempest, the UK’s Future Combat Air System (FCAS).
Go through further research published by The Insight Partners:
Programmable Ammunition Market– Global Analysis and Forecast to 2030
Large Caliber Ammunition Market – Global Analysis and Forecast to 2030
Small Caliber Ammunition Market– Global Analysis and Forecast to 2028
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