The global ammunition market size is projected to surpass USD 27.70 billion by 2027, according to a new report by Vision Research Reports.
The global ammunition market size was estimated at USD 20.45 billion in 2019 and is expected to exhibit a CAGR of 4% from 2020 to 2027.
The rising demand for defense equipment in militaries owing to increasing geopolitical tension across the globe is expected to drive the demand for ammunition.
The Indian Army is planning to increase the number of artillery and mortar platforms over the next ten years through indigenous development programs and foreign procurement thereby contributing to the demand for ammunition over the forecast period. In addition, rising hostilities in Middle East nations are expected to supplement the regional demand.
Advancements in ammunition technologies, such as the replacement of brass-case bullets using polymer-case bullets are projected to offer notable growth opportunities to the market. The use of polymer material is projected to reduce the weight of ammunition by 40%, while maintaining its impact, thereby making it lighter and consistent as compared to conventional bullets.
Rising warlike situations supplemented by heightening geopolitical pressures across the globe is leading to an exponential rise in stockpiling trends in the global ammunition market. This strategy is expected to offer notable cost savings, since the ammunition can be purchased in high volume at cheap prices, thereby posing positive growth trends for the market.
Small caliber ammunition held the dominant market share of 50.5% in 2019, owing to vast applications such as rifles, revolvers, shotguns pistols, and assault rifles. It is expected to witness the fastest growth over the forecast period, on account of rising demand from homeland security forces to restrain the rising instances of armed conflicts.
The medium caliber ammunition segment is expected to witness notable growth owing to rising procurement by the U.S. Army and its alliances for a broad spectrum of applications including land, sea, and air. Besides, the development of medium caliber ammunition with enhanced capability to penetrate light armor and materials is expected to further boost the demand.
The Rockets and missiles segment is expected to witness a notable CAGR of 3.8% during the forecast period, as U.S. and Russia—the two key defense spenders in the world—are moving toward the strategic nuclear renewal. The U.S. defense sector is focusing on upgrades and enhancements of its nuclear warhead, thereby positively influencing the growth of the rocket and missiles segment.
Furthermore, the U.S. defense sector has also proposed a novel space force and also intends to develop an expanded program for ballistic missile defense over the next decade. The aforementioned trends are projected to heighten the demand for the design, development, and manufacturing of advanced weapons, thereby creating growth opportunities for the market.
The defense sector accounted for 88.7% of the overall revenue share in 2019 and is expected to dominate the market over the forecast period. Rising geopolitical tension has fueled the demand for ammunition in the defense segment. In addition, the military forces across major economies are continuously modernizing their weaponry, hence boosting the ammo sales.
Hollow-point ammunition is highly preferred by the military and law enforcement personnel owing to their high precision, rapid expansion property, and excellent stopping power. Air-force tends to use hollow-point ammunition owing to its greater accuracy, whereas full metal jacket ammunition is used at a larger scale in military handguns.
The civil and commercial segment is expected to witness a substantial CAGR of 4.5% in the forthcoming years, owing to rising demand for applications such as hunting, and shooting. The industry exhibits a vast product line of ammunition for shooting sports, wherein the selection of the product is dependent on the type of sport. It also plays a vital role in maintaining optimal performance and firearm safety.
Rimfire ammunition is expected to register a CAGR of 3.5% over the forecast period on account of rising demand from amateur shooters owing to the limited recoil feature offered by the product. In addition, the aforementioned product segment incurs lower production costs owing to its structure that features thin casting coupled with a flattened primer.
Centerfire ammunition dominated the global ammunition market, accounting for 70.4% of the overall market in 2019. Centerfire ammo is defined as a universal standard across all defense forces including homeland security, military, and other security forces in the majority of countries owing to its ability to reuse casings and withstand high pressures. Centerfire ammunition structure features a strong base that allows it to withstand high pressure, thereby offering higher energy and velocity to the bullet. This type of ammunition is highly used in military operations due to its thicker metal casing, which can withstand rough handling without much damage, and also they are comparatively safer to handle.
North America recorded a revenue of USD 6.73 billion in 2019 and is projected to register exponential growth during the forecast period, on account of defense expenditure in the U.S. In December 2019, the U.S. Senate passed a USD 738 billion defense policy which includes the creation of a novel space force, thereby creating growth opportunities for the overall market.
Also, the Industrial Security Index signed between the U.S. and India in December 2019, is expected to facilitate the partnership between U.S. defense companies and the Indian private sector. This in turn is projected to lead to clear the pipeline for several multi-million dollar deals of defense equipment, thereby driving the market growth.
Asia Pacific is projected to register a CAGR of 4.8% over the forecast period owing to a rise in spending on up-gradation of defense capabilities in countries, such as India and China to handle heightening geopolitical pressures. Besides, intensifying competition between China and the U.S. in terms of advancing technologies and acquisitions is projected to boost the development of the defense system in China.
The government of India is continuously making efforts to enhance its military capabilities through increasing defense expenditures and privatization of ordnance factories. Also, the government is employing efforts to reduce the procurement lead time of defense equipment for militaries, thereby providing aid to the regional market growth.
The ammunition market is dominated by a few globally established players such as Northrop Grumman Corporation (US), CBC Global Ammunition (Brazil), BAE Systems (UK), Thales Group (France), and General Dynamics Corporation (US), among others.
7.62 x 51 mm
7.62 x 39 mm
9 x 18 mm
9 x 19 mm
Rockets, Missiles and Other
Civil & Commercial
Central & South America
Middle East & Africa
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