Small Caliber Ammunition Market is expected to reach US$ 10,241.57 Mn by 2028

Increasing Defense Budgets and The Rising Concern For Personal Defense to Provide Growth Opportunities for Small Caliber Ammunition Market during 2021–2028

According to our latest market study on “Small Caliber Ammunition Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Ammunition Size (5.56mm, 7.62mm, 9mm, 12.7mm, and 14.5mm, 45 ACP, .338LM, .22LR, 223 REM, .308 Winchester),  End-User (Military, Homeland Security, and Law Enforcement Agencies) and Gun Type(Pistols, Rifles, Shot Guns)” the market was valued at US$ 5,923.61 million in 2020 and is expected to reach US$ 10,241.57 million by 2028; it is anticipated to grow at a CAGR of 7.5% from 2021-2028.   

Increased federal expenditure on military modernization programmes to purchase better arms to replace the current arsenal is one of the key driving factors for the growth of the global small caliber ammunition market. Threats from insurgency, territorial disputes, and regional tensions have compelled countries to increase military spending. According to the Stockholm International Peace Research Institute (SIPRI), gross global military spending increased by 2.6% and reached to US$ 1,981 billion in 2020. This is the highest annual budget increase since 2010. Increasing defence budgets have made it easier to spend more in military modernization efforts aimed at acquiring better arms to complement or replace the current arsenal.

Military modernization is influencing the ammo industry in countries such as Germany, France, India, China, and Russia, which are investing heavily in improving their land forces' capabilities by inducting state-of-the-art small arms. For example, in January 2019, the Norwegian Defence Materiel Agency awarded a contract to German defence manufacturer Heckler & Koch for the delivery of HK416 A5 assault rifles. The HK416 A5 is an improved version of the combat-proven HK416 assault rifle, which fires NATO 5.56 x 45 mm ammunition.  Such factors drive the growth of the small caliber ammunition market across the world.

In terms of geography, the global small caliber ammunition market was dominated by the North America in 2020, which accounted for almost half of the total market share, owing to a higher demand for ammunition. With 2.26 million military officers, the US boasts one of the world's biggest ground forces. The nation spends the most on defence in the world. It spent about US$ 771.69 billion on its military in 2020, according to SIPRI. The US military is deployed in more than 150 countries across the world, with a significant number of troops stationed in conflict zones such as Afghanistan, Iraq, and Syria. In addition to active combat, the US personnel are frequently assigned to peacekeeping missions, military attachés, embassy and consulate security, and a variety of other classified missions. The acquisition of arms and ammunition by the US armed forces increases significantly due to such deployments. 

Impact of COVID-19 Pandemic on Small Caliber Ammunition Market

The COVID-19 pandemic has had a major economic effect globally. The manufacture of ammunition and assembly lines has been harmed all over the world. Despite the need of ammunition manufacture for military purposes, supply chain bottlenecks have temporarily halted manufacturing. The degree of COVID-19 exposure a country is exposed to, the amount of production activity, and import-export limitations, among other factors, all have a part in restarting ammunition manufacturing and demand. While companies may continue to take orders, delivery timings are not guaranteed.

BAE Systems, CBC Global Ammunition, Denel Pretoria Metal Pressing, Elbit Systems Ltd., FN Herstel, General Dynamics OTS, Nammo AS, Northrop Grumman Corporation, Remington Arms Company LLC, and Winchester Ammunition are among the major companies operating in the small caliber ammunition market.

Small Caliber Ammunition Market — by Geography, 2020

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Small Caliber Ammunition Market Report – Size & Share 2028

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Small Caliber Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Ammunition Size (5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, .338mm, .22LR, 223 REM, and .308 Winchester), End User (Military, Homeland Security, and Law Enforcement Agencies), Gun Type (Pistols, Rifles, and Shot Guns), and Geography

The report segments the global small caliber ammunition market as follows:

• By Ammunition Size
  • 5.56mm
  • 7.62mm
  • 9mm
  • 12.7mm
  • 14.5mm
  • 45 ACP
  • .338LM
  • .22LR
  • 223 REM
  • .308 Winchester
• By End-User
  • Military
  • Homeland Security
  • Law Enforcement Agencies
• By Gun Type
  • Pistols
  • Rifles
  • Shot Guns
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Italy
    • United Kingdom
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • Australia
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Middle East and Africa
    • South Africa
    • Saudi Arabia
    • U.A.E
    • Rest of Middle East and Africa
  • South and Central America
    • Brazil
    • Rest of South and Central America