Ammunition Market Size, Share, Trends and Forecast 2022, 2028

Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars, and Others), Application (Defense and Commercial), Guidance (Guided and Non-Guided), Lethality (Non-Lethal and Lethal), and Caliber [Small Caliber Ammunition (5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, .45ACP, 338LM, 22LR, .223 Rem, and .308 Winchester), Medium Caliber Ammunition (20mm, 30mm, 40mm, and Others), and Large Caliber Ammunition (60mm, 105mm, 120mm, 150mm, and Others)]

Publication Month : Aug 2022

  • Report Code : TIPRE00004778
  • Category : Aerospace and Defense
  • Status : Published
  • No. of Pages : 280
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The Ammunition Market is expected to grow from US$ 43.04 billion in 2022 to US$ 69.75 billion by 2028; it is estimated to grow at a CAGR of 8.4% from 2022 to 2028.

The Ammunition Market players are majorly focusing on the development of new and innovative ammunitions to replace different traditional brass cartridges. For instance, Nammo, an international aerospace and defense company, is looking for new lightweight materials that could replace brass cartridges that would benefit individual soldiers by lowering the overall weight and easy transportation of ammunition boxes as well. As a result, the company has invested in MAC LLC, which manufactures ammunition for small arms, to continue the research & development of such products. Further, missile manufacturers have been using composite materials for the last few years for making missiles lightweight, which can allow them to cover extended ranges than those covered by missiles made from conventional materials.

As several country governments have been pushing their capabilities to increase their firepower and strengthen their armed forces, the demand for advanced weaponry systems has been on the rise, thereby driving the Ammunition Market growth. In 2019, a country in Asia Pacific awarded a US$ 30 million contract to Elbit Systems for the procurement of STYLET-guided mortar ammunitions. Similarly, in 2022, Bharat Dynamics Limited (BDL) won a contract worth US$ 394 million to supply Konkurs-M anti-tank guided missiles to the Indian Army. Moreover, in 2022, the US Navy awarded a US$ 217 million contract to Raytheon Technologies for the procurement of Tomahawk guided cruise missiles.

The development of precision-guided grenades by the US armed forces is likely to transform the line infantry attack dynamics worldwide. In 2017, the US Army announced that it would produce 105 XM25 Counter Defilade Target Engagement (CDTE) weapons, which are precision-guided grenade launchers, to assign them to specially trained soldiers. The US Army has already tested the weapon in combat in Afghanistan. The weapon received mixed reviews from soldiers who were using it. Ranger units found the XM25 cumbersome for the battlefield. They were also concerned that the limited basic load of 25mm rounds was insufficient to justify taking an M4A1 carbine out of the mission. However, continuous efforts for improving such ammunitions are likely to generate new opportunities for market players during the forecast period.

Ammunitions Market -

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Ammunition Market: Strategic Insights

ammunition-market
Market Size Value inUS$ 43.04 Billion in 2022
Market Size Value byUS$ 69.75 Billion by 2028
Growth rateCAGR of 8.4% from 2022 to 2028
Forecast Period2022-2028
Base Year2022
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Impact of COVID-19 Pandemic on Ammunition Market Growth

 

Massive demand for ammunition and firearms in 2020 resulted in the shortage of ammunition as the manufacturers faced challenges in continuing their operations amid the social restrictions imposed in response to the COVID-19 pandemic due to disrupted supply chains, which led to raw material shortages, increased prices, and inventory shortfalls. The defense sector did not experience any significant impact from the pandemic; however, the vendors that produce ammunitions for commercial applications faced many challenges in the procurement of raw materials. The demand for ammunition reduced significantly in 2020 in commercial applications due to the suspension of shooting sports events and hunting activities amid lockdown situations. However, commercial application is a secondary preference for ammunition manufacturers, as their priority is to cater to military demands. Currently, they are focused on grabbing contracts from defense authorities of different countries to remain competitive in the Ammunition Market due to the rise in expenditure by different countries.

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Market Insights – Ammunition Market

Based on region, the Ammunition Market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America. North America is expected to account for the largest Ammunition Market share in 2022 and is expected to continue to be a dominant shareholder during the forecast period. Also, Europe is expected to account for second largest Ammunition Market share in 2022 followed by Asia Pacific. Further, Asia Pacific is expected to register the highest CAGR in the Ammunition Market during the forecast period.

Guidance Insights – Ammunitions Market

Based on guidance, the Ammunition Market is bifurcated into guided and non-guided. The guided segment is expected to dominate the Ammunition Market in 2022, and it is also projected to retain its dominance during the forecast period as well. The growth of the guided ammunitions segment is attributed to huge demand for precision guided missiles and large adoption of guided mortar systems. Advancements in positioning system technologies, such as semi-active lasers, radar homing, inertial navigation systems (INS), and global positioning systems (GPS), are favoring the guided Ammunition Market growth. In addition, the compatibility of the positioning system with the missile's nuclear warhead is likely to boost its inclusion in ammunition. For instance, in May 2022, EMCORE Corporation received its first order to provide multiple SDI170 MEMS inertial measurement units (IMUs) for precision-guided ammunition by a major international weapons system manufacturer. In November 2021, HALCON, a part of the EDGE Group that is a leading manufacturer and supplier of precision-guided weapons, received a contract worth US$ 880 million from the UAE Armed Forces for its Thunder and Desert Sting range of precision-guided munitions.

The Ammunition Market is highly fragmented due to the presence of large number of Ammunition Market players across the world. Thales Group, Raytheon Technologies, Elbit Systems Ltd., Northrop Grumman Corporation, and BAE Systems are among the prominent Ammunition Market players operating worldwide. The top five players account for ~25% of the total market, wherein the other 3 quarters of the market has been acquired by more than 300 vendors.

The Ammunition Market players are witnessing a rise in demand for across several commercial as well as defense applications. Therefore, many companies focus on expanding their product offerings to private and public end users. For this, they are partnering with different companies to develop sustainable solutions for the public and private sectors.

  • In May 2022, Nammo signed a contract with the Swedish Defence Materiel Administration (FMV) to be the sole supplier of 12.7mm ammunitions to Swedish armed forces until 2029.
  • In March 2022, the defense ministry of Saudi Arabia inked 23 contracts for US$ 3.4 billion with local and international enterprises. During the same period, the Saudi Arabian Military Industries (SAMI) also signed 5 contracts for US$ 1.6 billion to purchase military vehicles, ammunition, and communication devices.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product, Application, Guidance, Lethality, and Caliber

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


What is the estimated global market size for the ammunition market in 2022?

The estimated global market size for the ammunition market in 2022 is expected to be around US$ 43.04 billion

What are the driving factors impacting the ammunition market?

Rise in global military spending promotes procurement of ammunitions
Introduction of lightweight ammunitions

What is the future trend in the ammunition market?

Technological advancements across firearms industry

Which are the key players holding the major market share of the ammunition market?

Thales Group, Raytheon Technologies, Elbit Systems Ltd., Northrop Grumman Corporation, and BAE Systems are the key market players expected to hold a major market share of the ammunition market in 2022

Which is the fastest growing regional market?

Asia Pacific is expected to register the highest CAGR in the ammunition market during the forecast period (2022-2028)

Which countries are registering a high growth rate during the forecast period?

India, China, and Japan are expected to register high growth rates during the forecast period

Which country is holding the major market share of the ammunition market?

The US is expected to hold a major market share of the ammunition market in 2022

Which is the leading ammunition product segment in the ammunition market?

Aerial bomb segment is expected to hold a major market share of the ammunition market in 2022

What will be the global market size of the ammunition market by 2028?

The global market size of the ammunition market by 2028 will be around US$ 69.75 billion

What is the incremental growth of the ammunition market during the forecast period?

The ammunition market is expected to register an incremental growth value of US$ 26.70 billion during the forecast period

The List of Companies - Ammunitions Market

  1. Northrop Grumman Corporation
  2. BAE Systems
  3. Elbit Systems Ltd.
  4. Raytheon Technologies Corporation
  5. Vista Outdoor Operations LLC
  6. AMTEC Corporation
  7. NAMMO AS
  8. Rheinmetall AG
  9. RUAG Group
  10. Thales Group

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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