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The nato ammunition market share is expected to increase by USD 208.24 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.13%.
This nato ammunition market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers nato ammunition market segmentation by product (small caliber, medium caliber, and large caliber) and geography (North America, Europe, APAC, Middle East and Africa, and South America). The nato ammunition market report also offers information on several market vendors, including CBC Global Ammunition, Die Diehl Stiftung and Co. KG, General Dynamics Corp., Global Ordnance LLC, Nammo AS, Nexter group KNDS, Northrop Grumman system Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Rheinmetall AG, RUAG International Holding Ltd., and BAE Systems Plc among others.
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The rise in defense spending globally is notably driving the nato ammunition market growth, although factors such as the proliferation of illicit ammunition manufacturers may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the nato ammunition industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Nato Ammunition Market Driver
The rise in defense spending globally is one of the key drivers supporting the nato ammunition market growth. Growth in defense budgets will support nations to enhance their combat capabilities and help NATO countries execute their individual and collective defense strategies as planned. According to the Stockholm International Peace Research Institute (SIPRI), the total military spending by all NATO member states in 2020 was $1,981 billion. Out of this, military spending by the US alone was as much as $778 billion in 2020, while the military spending of Germany grew considerably by about 5.2% in 2020, to $52.8 billion. Military expenditure in sub-Saharan Africa increased by 3.4% in 2020 to reach $18.5 billion. The largest increases in spending were made by Chad (31%), Mali (22%), Mauritania (23%), and Nigeria (29%), all in the Sahel region, as well as Uganda (46%). Poland is also increasing its military spending, and the country has pledged to increase its military spending to 2.5% of its GDP by 2030. Such an increase in spending is driving the market growth.
Key Nato Ammunition Market Trend
Reduction in weight of ammunition is another factor supporting the nato ammunition market growth. Modernization programs adopted by several nations to empower their militaries and law enforcement agencies have resulted in a significant increase in the total weight of ammunition. The combined weight of equipment prevents personnel from being agile and effective. Hence, law enforcement and defense agencies are now focusing on acquiring lightweight ammunition. For instance, in September 2021, the BAE system developed a lightweight case for the 5.56 ammunition. This has significantly reduced the fuel consumption of vehicles carrying ammunition. Such innovation in the weight reduction of the ammo would further drive the growth of the market in the forecast period.
Key Nato Ammunition Market Challenge
The proliferation of illicit ammunition manufacturers is one of the factors hindering the nato ammunition market growth. The information on global ammunition flow is difficult to obtain. According to the UN Office of Disarmament Affairs, more than 80% of ammunition trade seems to remain outside of reliable export data. Thus, the proliferation of illicitly manufactured ammunition is a major issue that threatens the security of various countries across the world. It involves the manufacturing or assembly of ammunition, explosives, and other related materials from components that are either illicitly trafficked or do not have markings from government authorities. Such illicitly manufactured ammunition is often transferred and smuggled across international borders. It not only becomes a source of terrorist activities but can also substitute branded ammunition for several other applications, affecting the demand for branded ammunition negatively. Such threats are expected to hamper the market growth during the forecast period.
This nato ammunition market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global NATO ammunition market as a part of the global aerospace and defense market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the nato ammunition market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the nato ammunition market encompasses successful business strategies deployed by the key vendors. The nato ammunition market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.
BAE Systems Plc
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The nato ammunition market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the nato ammunition market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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54% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for NATO ammunition market in North America. Market growth in this region will be slower than the growth of the market in other regions.
Large defense spending will facilitate the nato ammunition market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 in 2020 did not have any major effect on the regional NATO ammunition market. Moreover, the declaration of the war between Russia and Ukraine in February 2022 has significantly boosted the demand for ammunition from US and NATO members countries. The US has announced an additional $350 million of military assistance from Defense Department inventories including anti-armor, small arms, various munitions, body armor and related equipment to support Ukraine frontline defenders. Thus, this would further propel the demand for the NATO ammunition market during the forecast period.
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The nato ammunition market share growth by the small caliber segment will be significant during the forecast period. The small caliber segment captured the highest share of the global NATO ammunition market in 2021. This is attributed to the increased use of small caliber ammunition by military and homeland security personnel, owing to the non-lethality of this ammunition. Moreover, open online marketplaces for small arms and ammunition and the increased procurement of small caliber ammunition by the defense and homeland security sectors to curb the rising instances of armed conflicts are also contributing to the growth of this segment. Such growing factors will drive market growth during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the nato ammunition market size and actionable market insights on post COVID-19 impact on each segment.
Nato Ammunition Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.13% |
Market growth 2022-2026 |
$ 208.24 million |
Market structure |
Concentrated |
YoY growth (%) |
4.83 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 54% |
Key consumer countries |
US, Canada, Mexico, China, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
CBC Global Ammunition, Die Diehl Stiftung and Co. KG, General Dynamics Corp., Global Ordnance LLC, Nammo AS, Nexter group KNDS, Northrop Grumman system Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Rheinmetall AG, RUAG International Holding Ltd., and BAE Systems Plc |
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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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