Ammunition Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, India, Russia, UK - Size and Forecast 2023-2027

Ammunition Market Forecast 2023-2027

The ammunition market size is forecast to increase by USD 5.17 billion million, at a  CAGR of 4.29% between 2022 and 2027. The growth of the market depends on several factors, including the prevalence of geopolitical conflicts, political tensions, and cross-border issues, the increase in ammunition procurement by armed forces or border security forces, and the increase in drug trafficking globally. 

What will be the size of the Ammunition Market During the Forecast Period?

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Technavio’s Exclusive Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies. 

Global Ammunition Market Customer Landscape

Key Drivers, Trends, and Challenges

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, market trends and analysis, and challenges for the market. 

Key  Driver

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.

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.

Significant Trends

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.

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.

Major  Challenge

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. 

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.

Who are the Major Market Companies?

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.

BAE Systems Plc - The key offerings of the company include  Small Arms Ammunition in 5.56mm and 7.62mm NATO calibers including ball, tracer, and blank natures.

CBC Global Ammunition - The key offerings of the company include small caliber ammunition under various brands called MEN, CBC defense, and MAGTECH.

We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:

• Adani Group
• AMMO Inc.
• BERETTA HOLDING SA
• 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.
• Lockheed Martin Corp.
• Mesko SA
• Nammo AS
• Nexter KNDS Group

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation by Product, Application, and Geography 

Product Segment Analysis: 

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. The segment showed a gradual increase in market share with USD 9.61 billion in 2017 and continued to grow until 2021. With the rise in demand for weapons for defense and recreational purposes, the small-caliber market has been experiencing steady growth in recent years. 

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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. 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.

Application Segment Analysis:

The global ammunition market continues to significantly influence the defense industry. Governments all over the world rely heavily on this sector of the economy for funding. In the area of weaponry, it also serves as a major catalyst for innovation and technological advancement. The rising demand for military hardware and ammunition is one of the primary drivers of the defense industry's expansion. Countries are making significant investments in cutting-edge weapons and ammunition as they work to bolster their national security and defend themselves against potential threats. Around the world, defense spending has increased as a result, with the US, China, and Russia setting the pace. Furthermore, the defense industry is promoting innovation in the ammunition industry in addition to meeting the rising demand for ammunition. Companies are constantly improving and developing their products, adding new features and technologies to increase the efficiency and effectiveness of their ammunition. New kinds of ammunition have been developed as a result, including guided missiles that can be remotely directed to particular targets and smart bullets that can steer themselves toward their targets. Thus, the above-mentioned factors are expected to drive the growth of the defense segment in the global market during the forecast period.

Regional Analysis:

North America is estimated to contribute 41% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape market research and growth during the forecast period.

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North America is a significant contributor to the global market. The 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.

For instance, AMMO Inc. (Ammo) announced in September 2022 that it would establish a new ammunition manufacturing facility at West Custer Street in Manitowoc, Wisconsin. With its 185,000-square-foot size and state-of-the-art technology, the new facility will enable AMMO to significantly increase its manufacturing capacity in order to meet the rapidly growing demand for its unique products. Over 300 people are currently employed by the company in Manitowoc, and another 100 team members are expected to join them in the upcoming year. Furthermore, Numerous ammunition 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.

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Market Analyst Overview

The market is experiencing substantial growth, fueled by a robust CAGR (Compound Annual Growth Rate) and the continuous increase in global defense spending. The focus on enhancing infantry capabilities is evident through widespread infantry support programs and the adoption of newer-generation ammunition known for its improved penetrating power. Militaries worldwide are investing significantly in advanced weapons, particularly in the small caliber ammunition segment. Training ammunition plays a pivotal role in preparing forces for diverse scenarios, including peacekeeping missions and counter-insurgency operations. 

Moreover, the market is witnessing a shift toward higher calibers, emphasizing the importance of local manufacturing capabilities, indigenous models, and research and development to meet evolving geopolitical tensions. The advent of fire and forget-type munitions underscores the focus on enhancing the lethality of weapons, with suppliers of munitions playing a crucial role in shaping the market landscape. Additionally, attention to factors like munition range, domestic production capabilities, and the role of reserve forces highlights the comprehensive approach taken to address global security needs in this evolving market.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook (USD Billion, 2017 - 2027)
  • Small caliber
  • Medium caliber
  • Large caliber
• Application Outlook (USD Billion, 2017 - 2027)
  • Defense
  • Civil
  • Commercial
• Region Outlook (USD Billion, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Ammunition Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Market forecasting period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.29%
Market growth 2023-2027	USD 5.17 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.12
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 41%
Key countries	US, China, India, Russia, 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., Lockheed Martin Corp., Mesko SA, Nammo AS, Nexter KNDS Group, Northrop Grumman Systems Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poonfsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc.
Market dynamics	Parent market growth analysis, market growth and forecasting, 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 the forecast period.
Customization purview	If our market analysis and 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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What are the Key Data Covered in this Ammunition Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors 

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