Ammunition Market Share, Size, Trends, Industry Analysis Report, By Product (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars); By Component; By Caliber; By Guidance Mechanism; By Application; By Lethality; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jun-2024
- Pages: 117
- Format: PDF
- Report ID: PM1201
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
Ammunition Market size was valued at USD 27.65 billion in 2023. The market is anticipated to grow from USD 28.72 billion in 2024 to USD 39.31 billion by 2032, exhibiting the CAGR of 4.0% during the forecast period.
Market Overview
The growing global conflicts, specifically among neighboring countries, are boosting the need for effective defense tools, including bullets, grenades, and mortars. The increasing support from government and non-government organizations to assist countries in equipping effective defense tools is showcasing enormous growth potential for the ammunition market. For instance, in January 2024, the North Atlantic Treaty Organization Support and Procurement Agency (NATO SPA) settled to acquire 55-mm artillery shells worth 220,000, valued at USD 1.2 billion.
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Furthermore, rising investments in ammunition manufacturing along with rising concerns about nation safety are anticipated to bolster ammunition market expansion over the forecast period.
- For instance, in April 2024, Winchester received the contract to construct a manufacturing facility for Next Generation Squad Weapon – Ammunition (NGSW-A) in the United States at Lake City Army Ammunition Plant (LCAAP).
Moreover, growing bilateral agreements to boost support from the countries aiming to build advanced ammunition for their nations is likely to facilitate new growth opportunities in the coming years. Government expenditure on defense and military modernization programs is a primary driver of the ammunition market. As countries invest in enhancing their defense capabilities to address evolving security threats, there is a continuous demand for ammunition to equip armed forces with the necessary firepower.
Military modernization initiatives, aimed at upgrading weaponry, enhancing combat capabilities, and improving operational effectiveness, fuel the demand for advanced ammunition systems. This includes investments in precision-guided munitions, smart ammunition, and next-generation small arms ammunition. Apart from military and law enforcement agencies, there is a significant civilian market for ammunition, including recreational shooters, hunters, sports enthusiasts, and firearms collectors. Factors such as growing participation in shooting sports, hunting activities, and self-defense training drive demand for ammunition in the civilian market.
Growth Drivers
Rising bilateral agreements to stimulate defense equipment manufacturing
Bilateral agreements between countries often involve collaboration in defense and security matters, including joint military exercises, intelligence sharing, and defense procurement. Such agreements facilitate closer ties between nations and create opportunities for defense equipment manufacturers to supply ammunition and other military hardware.
Many countries seek to strengthen their indigenous defense manufacturing capabilities as part of national security strategies. Bilateral agreements may include provisions for technology transfer, co-production, or joint development of defense equipment, including ammunition. This encourages investment in domestic defense industries and fosters innovation and self-reliance.
Bilateral agreements can open up new markets for defense equipment manufacturers by providing access to foreign defense markets. Export opportunities arise from agreements with partner countries seeking to modernize their armed forces, replace outdated equipment, or enhance their defense capabilities. This expands the customer base for ammunition manufacturers and supports revenue growth.
Growing demand for ammunition systems
The significant uptick in ammunition system demand is significantly driving the production of ammunition systems in the global marketplace. For instance, in October 2023, Northrop Grumman Corporation announced its plan to develop a guided-ammunition system, high explosive 57mm ammunition, for the United States Navy.
The rising initiatives by governments to promote their defense manufacturing capacity are positively affecting global ammunition market growth over the study period. For instance, in March 2024, the US army partnered with the Canadian Commercial Corporation to fuel ammunition production capacity in Canada.
Restraining Factors
Huge cost of advanced ammunition systems
The higher investment in ammunition is expected to limit its adoption in the global marketplace. The huge costs of developing ammunition systems are anticipated to lower the demand for the systems in the coming years.
Report Segmentation
The market is primarily segmented based on product, component, caliber, guidance mechanism, application, lethality, and region.
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By Product |
By Component |
By Caliber |
By Guidance Mechanism |
By Application |
By Lethality |
By Region |
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By Product Analysis
Bullets segment is expected to witness the highest growth during the forecast period
The bullets segment is projected to grow at the highest CAGR during the forecast period, mainly driven by the rising prevalence of global threats. The increasing number of new defense tools is encouraging nations to acquire advanced technologies earlier to promote their army performance. For instance, in February 2024, the Indian government unveiled a missile barge, ammunition, and torpedo.
By Component Analysis
Projectiles and Warheads segment accounted for the largest market share in 2023
In 2023, the projectiles and warheads segment held the largest revenue share. The growing conflicts in space are stimulating the demand for effective projectiles and warheads by the countries. As more countries witness the prevalence of air-based wars, there will be a huge demand for warheads and projectiles in the years to come.
By Caliber Analysis
The small-caliber Ammunition segment held a significant market revenue share in 2023
The Small-Caliber Ammunition segment held a significant market share in revenue in 2023, which was positively accelerated due to its superior performance and accuracy. Rising terrorism activities among nations are creating a significant need for small-caliber ammunition, driven by its potential to travel faster than medium-caliber ammunition. Additionally, people use small-caliber ammunition for hunting, shooting, and enhancing personal safety, driving higher adoption worldwide.
Regional Insights
Asia Pacific region registered the largest share of the global market in 2023
The Asia Pacific region held the largest market share in 2023. This is due to the increasing defense expenditures among the nations with growing border conflicts in the region, specifically India and China. The Indian Ministry of Defence increased the allocation of the defense budget by one lakh crore, accounting for an 18.5% rise in 2023-24 from 2022-23. The rising investments in defense showcase government efforts to promote the nation's security. This trend is likely to facilitate new growth opportunities for the ammunition market.
The European region will grow rapidly, owing to the growing government initiatives to enhance defense equipment production and drive technological advancements. For instance, in March 2024, the European Commission announced the allotment of EUR 500 million in the future to support the Ammunition Production Act. This is expected to enable the region to produce 2 million shells annually by the end of 2025.
Key Market Players & Competitive Insights
Strategic partnerships to drive the competition
The ammunition market needs to be more cohesive. The growing investments in designing new defense equipment are positively impacting the global ammunition market. The ongoing expansion initiatives, including partnerships, acquisitions, and collaborations, are fueling competition in the marketplace. For instance, in November 2023, Belgium and FN Herstal entered into a partnership agreement to boost its defense sector by fueling ammunition supply and small arms.
Some of the major players operating in the global market include:
- BAE Systems
- CBC Global Ammunition
- Elbit Systems
- General Dynamics Corporation
- Nammo AS
- Nexter KNDS group
- Northrop Grumman Corporation
- Olin Corporation
- Rheinmetall AG
- Ruag Ammotec
- ST Engineering
- Thales Group
Recent Developments in the Industry
- In June 2023, NIOA, a defence contracting company, announced its plan to expand its partnership to supply 155mm ammunition to the Australian army.
Report Coverage
The ammunition market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, product, component, caliber, guidance mechanism, application, lethality, and their futuristic growth opportunities.
Ammunition Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 28.72 billion |
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Revenue forecast in 2032 |
USD 39.31 billion |
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CAGR |
4.0% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
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Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
Ammunition Market report covering key segments are product, component, caliber, guidance mechanism, application, lethality, and region.
Ammunition Market Size Worth $ 39.31 Billion By 2032
Ammunition Market exhibiting the CAGR of 4.0% during the forecast period.
Asia Pacific is leading the global market.
The key driving factors in Ammunition Market are rising bilateral agreements to stimulate defense equipment manufacturing
