Ammunition Industry | Forecast 2030
Ammunition Industry Data Book – Small Caliber Ammunition, Medium Caliber Ammunition and Large Caliber Ammunition Market
The economic value generated by the ammunition industry was estimated at approximately USD 49.94 billion in 2022. This economic output is an amalgamation of businesses that are involved in the manufacturing of ammunition materials, distribution & supply, and end-use of ammunition. Developments and enhancement of military capabilities across various countries are anticipated to increase the procurement of small to large-size weapon systems, this is likely to increase the demand for ammunition.
The North America ammunition market is expected to witness significant growth, owing to high demand from the U.S. The defense budget in North America has increased in the recent past which is heavily influencing the regional market. The long-term competitive strategy of the U.S. Department of Defense for the development of technologies and new concepts of warfare is expected to aid the market growth.
Small Caliber Ammunition Market Insights
The global small caliber ammunition market size was valued at USD 12.09 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of – 0.7% from 2022 to 2030. The market is expected to be driven by growing military expenditure and rising hunting as well as sporting activities across the world. The majority of the countries have initiated efforts to expand their military capabilities to counter terrorism and secure their geographical border from rising geopolitical competition. Moreover, some countries are focusing on strengthening their law enforcement agencies to control internal conflicts within the country. These trends are expected to drive the demand for arms and ammunition, thereby bolstering the market growth.
Small caliber bullets accounted for the largest revenue share in the U.S. bullets market n 2021 owing to the increasing utilization of .22LR (long rifle). Furthermore, the U.S. military exhibits the largest demand for 5.56mm caliber bullets for use in M4A1 and M249 weapons, which on average is estimated to be 300 million rounds per year.
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Small & Medium Caliber Ammunition Market Insights
The global small & medium caliber ammunition market size was valued at USD 9.18 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% from 2020 to 2027. Increasing geopolitical tensions and increasing military expenditure are expected to drive market growth over the forecast period. Commercially, the ammunition is available in the market through direct supply or third-party distributors. However, manufacturers can only sell their products to an entity with a federal license that can either be a retailer, wholesaler, or user. Moreover, strict laws and regulations are followed for the trade and different countries have their distinct legislations or the arms act to monitor the same.
The market in India is expected to exhibit high growth over the projected period on account of armed forces development and the adoption of the latest technological weapons. Moreover, ongoing geopolitics with China coupled with the repetitive disputes with Pakistan forces over the borderline is expected to increase product procurement.
Large Caliber Ammunition Market Insights
Large caliber ammunition includes ammunition with 105mm caliber and 120mm caliber. Large caliber cartridges are generally projectiles. These cartridges are designed for long-range tank engagement and are used for anti-armor weapons. Large caliber ammunition can be classified into spin-stabilized, fin-stabilized, and rocket-assisted, which is a combination of spin-stabilized and fin-stabilized. A majority of the guns use spin-stabilized large caliber cartridges as they offer flight stability using spinning, whereas fin-stabilized projectiles obtain stability through the fins located at the end of the projectile. These cartridges are also used for gunnery training in tank-mounted gun cannons.
Russia’s invasion of Ukraine has substantially raised the global security concerns thus opening the growth opportunities for the large caliber ammunition segment. As a result, the large caliber ammunition manufacturers based in the U.S., which is the major hub of munition manufacturing, have ramped up production exponentially, thus positively influencing the target market growth.
Table of Contents – Sectoral Outlook Report
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
1.3. Information Procurement
1.3.1. Purchased Database
1.3.2. GVR’s Internal Database
1.3.3. Secondary Sources & Third-Party Perspectives
1.3.4. Primary Research
1.4. Information Analysis
1.4.1. Data Analysis Models
1.5. Market Formulation & Data Visualization
1.6. Data Validation & Publishing
Chapter 2. Executive Summary
2.1. Industry Snapshot
2.2. Segmental Outlook
2.3. Competitive Outlook
- Northrop Grumman Corporation
- FN Herstal
- Olin Corporation
- General Dynamics Corporation
- BAE Systems, Inc.
- Rheinmetall Defense
- Nexter KNDS Group
- Hanwha Corporation
- ST Engineering
- Remington Arms Company LLC
- Vista Outdoor Operations LLC
- Chemring Group Plc
- MaxamCorp Holding SL
- Denel SOC Ltd