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The ammunition market size is forecast to increase by USD 3.9 billion, at a CAGR of 3.21% between 2023 and 2028. Market expansion hinges on various factors, including the prevalence of geopolitical conflicts, political tensions, and cross-border issues, the escalating procurement of ammunition by armed forces and border security agencies, and the global surge in drug trafficking. These factors collectively contribute to the demand for security and defense-related products and services. Heightened geopolitical tensions and conflicts often lead to increased military expenditures, driving the procurement of ammunition and other defense equipment. Additionally, the rise in drug trafficking activities necessitates enhanced border security measures, further stimulating demand for ammunition and related products. As these geopolitical and security challenges persist, the market for ammunition and security solutions is expected to witness steady growth, catering to the evolving needs of defense and law enforcement agencies worldwide. Our market growth analysis report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
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In the dynamic landscape of global conflict, the ammunition industry stands as a critical pillar, supplying the arsenal required for modern warfare. Inventories are stocked with a diverse array of munitions, from bullets to artillery shells, sustaining armed forces and bolstering war reserves. The evolving nature of warfare, marked by territorial disputes, political instability, and economic disparities, underscores the necessity for constant adaptation and modernization of armed forces. However, this evolution is also mirrored in the militarization of police forces, blurring the lines between domestic law enforcement and military action. Amidst ceasefires violated, wars waged, and the specter of cross-border terrorism, regions like Morocco grapple with geopolitical complexities, fueling the demand for military ordnance to address security challenges head-on. Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The prevalence of geopolitical conflicts, political tensions, and cross-border issues are notably driving the market growth. The need for large-caliber ammunition is growing as military budgets are being increased, military personnel is being bolstered, and conflicts in the Middle East and Asia are affecting countries like South Korea, Russia, Japan, and others. The industry's revenue growth is being fueled by technological advancements and increased R&D spending.
Further, the demand for small and medium-caliber weapons is also rising due to regional conflicts and political unrest in a number of countries. For instance, Ukraine announced in June 2022 that it would increase its military spending by about USD 8.3 billion, or nearly 20% more than in prior years, to replace weapons in the defense sector. This announcement came during the Russia-Ukraine war. Thus, such factors are expected to increase the demand for ammunition, which will drive the market growth and trends during the forecast period.
The reduction of the weight of ammunition is an emerging trend in market growth. The weight of ammunition has significantly decreased as a result of new material developments and manufacturing methods. Bullet casings are being made of new, lightweight metals and composite materials, and propellants have also undergone weight-reduction optimization. This has made it possible to create smaller, more portable rounds that are still extremely lethal. A soldier can carry more ammunition if they are carrying less weight.
Additionally, the aviation sector has also been significantly impacted by its lighter weight. Longer flight times and possibly more successful missions result from lighter aircraft, which can carry more ammunition. Particularly in military operations where air support is crucial, this has been crucial. Logistics are made easier by lighter ammunition as well. Its storage and transportation require fewer resources, allowing for more flexible and quick military operations. This is essential in contemporary warfare, where success depends on agility and effectiveness. Thus, such factors are expected to fuel the growth of the global market during the forecast period.
The rise in ammunition smuggling is a major challenge impeding the market growth. The high demand for firearms and related goods on the black market is one of the main factors contributing to the rise in smuggling. According to recent reports, the cost of ammunition has skyrocketed, with a box of 50 rounds going for as much as USD 80. This has made the criminal enterprise involved extremely profitable. Additionally, criminals are becoming more inventive with their methods of smuggling goods, employing strategies like concealing ammunition in vehicles, shipping containers, and even inside seemingly innocent items like clothing and toys. Because of this, it is challenging for the authorities to find smuggled ammunition and capture those responsible.
Moreover, the effects of such explosives are extensive. It supports the operations of criminal organizations, which in turn fuels community violence and insecurity. Ammunition poses a significant risk to public safety because it is frequently used in violent crimes like armed robberies, shootings, and acts of terrorism. Furthermore, the introduction of illegal firearms into a nation through the smuggling of ammunition is a risk that could lead to other criminal activities. As a result, there is a risk from both the ammunition itself and the potential firearms it could produce. Thus, such factors are expected to negatively impact the growth of the global market during the forecast period to some extent.
The small caliber segment will contribute a major share of the market. Small-caliber ammunition has been an essential part of the market for many years. With the rise in demand for weapons for defense and recreational purposes, the small-caliber market has been experiencing steady growth in recent years. Ammunition with a caliber of less than 20 mm is generally referred to as small caliber ammunition. The growing demand for small arms and explosives for defense purposes as well as the rising popularity of recreational shooting are the main factors driving the market.
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The small caliber segment showed a gradual increase in market share with USD 9.90 billion in 2018. The demand for small arms and ammunition has increased due to the rise in insurgencies and terrorist activities around the world, which has resulted in an expansion of the small caliber ammunition market. Additionally, the market for recreational shooting has expanded as a result of the rise in interest in hunting and shooting sports, particularly among younger generations. Small-caliber ammunition and weapons are now in demand for hunting, sporting clays, and self-defense. Hence, such factors are expected to drive the growth of the focused segment in the global market during the forecast period.
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APAC is estimated to contribute 33% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America region benefits from cutting-edge technologies and significant defense spending by its governments for reasons of national security. Numerous factors, including rising demand for defense products, an increase in the international trade in weapons, and military modernization initiatives, are driving the North American market. Additionally, the US will spend USD 842 billion on defense in 2023, making it the largest defense spender in the world. To meet the growing demand for ammunition in North America, suppliers are opening new manufacturing facilities. Furthermore, Numerous producers are also based in North America, including General Dynamics Corp. (General Dynamics), Vista Outdoor, and Olin Corp. (Olin). These businesses have increased their production capacity and made significant investments in R&D, which has increased sales on a global scale. Hence, such factors are expected to further fuel the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Global Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Global Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. de C.V., KNDS N.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Northrop Grumman Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poongsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market, integral to warfare and combat equipment, is deeply intertwined with defense budgets and the needs of armed personnel worldwide. As militaries invest in newer generation ammunition with enhanced penetrating power, competition among manufacturers intensifies. From training ammunition for peacekeeping missions to high-caliber rifles for combat, the market caters to diverse needs and calibers. Notable players like Lucky Gunner and Anthony Welch drive innovation, with advancements like the Advanced 9mm Cartridge shaping the future of defense. Companies such as NIOA and Armtec Defense Products play pivotal roles in stockpiling and supplying ammunition, ensuring readiness in times of need. As demand rises, technologies like STYLET promise to revolutionize warfare equipment, underscoring the importance of the ammunition market in global security efforts.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.21% |
Market Growth 2024-2028 |
USD 3.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.07 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Russia, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Global Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Global Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. de C.V., KNDS N.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Northrop Grumman Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poongsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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