Rise in Military Expenditure to Provide Growth Opportunities for Ammunition Market During 2022–2028
According to our latest market study on "Ammunition Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product, Application, Guidance, Lethality, and Caliber," the 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.
Ammunitions refer to a supply of actual munitions or exploding substances mounted in guns, cannons, launchers, and other types of platforms for launch and use. Countries procure ammunitions to justify their firepower and ensure national safety. In 2021, several vendors faced supply chain shortages and a decline in demand for guns during the pandemic period. Although ammunition shortage was witnessed in commercial applications, the Ammunition Market growth remained unaffected in the defense segment.
A rise in military expenditures across countries and an increase in tension among countries are among the major factors propelling the demand for ammunition across the world. Several countries are taking serious actions to ensure the safety of their nation for which they are collaborating with other countries to enhance the capabilities of their armed forces. For instance, after Russia’s invasion of Ukraine, the US has been taking initiatives to increase its military presence across European countries for a long by establishing its first permanent presence in Poland to reinforce the security of the country. For this, it will be deploying its several forces in the country along with required ammunitions and firearms. Such initiatives are driving the market growth across the world.
The introduction of smart weapons and ammunitions, including precision guided missiles, guided mortars, and guided artillery systems, is likely to fuel the Ammunition Market growth during the forecast period. In addition, the procurement of military aircraft, combat helicopters, artillery systems, mortar vehicles, infantry fighting vehicles, and tanks in large quantities is supporting the growth of the firearm and ammunition industry worldwide. Ammunition is also being used in various commercial activities, including hunting and shooting sports. However, several countries across the world are now against hunting activities and have been introducing new laws against these activities, which may limit the expansion of the ammunitions size. However, the rising awareness of shooting sports among sports enthusiasts is positively impacting the market growth.
In 2022, North America is expected occupy leading Ammunition Market share, with the US leading with largest Ammunition Market share in the region. The growing threat of terrorism and the leniency of gun laws promote the use of bullets in the region. According to the data published by Stockholm International Peace Research Institute (SIPRI), military expenses in the US rose from US$ 801.68 billion in 2020 to US$ 827.12 billion in 2021. Such rise in military expenditure in North American countries favors the growth of the Ammunition Market size in the region.
In the Asia Pacific region, China is expected to hold major share of the Ammunition Market in 2022. Asia Pacific has witnessed considerable growth in firearms manufacturing, price value, introduction of new weapon systems, and particularly ammunition manufacturing. Military spending in Asia Pacific is driven by major programs formulated by governments of various countries, such as India, China, Australia, and South Korea, for the procurement of ammunitions. These countries are focused on the indigenous development of firearms, which would encourage them to spend more on military ammunition in the future. Such factors are likely to boost the Ammunition Market size in the Asia Pacific region during the forecast period.
The ammunition market is segmented on the basis of product, application, guidance, lethality, and caliber. Based on product, the market is segmented into bullets, aerial bombs, grenades, artillery shells, mortars, and others. Based on application, the market is bifurcated into defense and commercial market. Based on guidance, the Ammunition Market is bifurcated into guided and non-guided. Based on lethality, the market is bifurcated into non-lethal and lethal. Based on caliber, the market is segregated into small caliber ammunition, medium caliber ammunition, and large caliber ammunition. The market for small-caliber ammunition is further segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, 338LM, 22LR, .223 Rem, and .308 Winchester. The market for medium-caliber ammunition is further segmented into 20mm, 30mm, 40mm, and others. The large-caliber Ammunition Market is further segmented into 60mm, 105mm, 120mm, 150mm, and others.
Ammunition Market - by Region, 2022
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)]
Ammunition Market Size, Share, Trends and Forecast 2022, 2028
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Thales Group, Raytheon Technologies, Elbit Systems Ltd., Northrop Grumman Corporation, and BAE Systems are among the key Ammunition Market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the Ammunition Market and its ecosystem.
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