Ammunition Market: North America Dominated And Accounted For Global Revenue
Ammunition Industry Overview
The global ammunition market size is expected to reach USD 29.68 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 3.2% from 2022 to 2030. Increasing investments in defense equipment by militaries on account of the rise in geopolitical tension across the globe are anticipated to drive the demand for ammunition in the estimated time. Increasing procurement of artillery and mortar platforms by the Indian Army over the next ten years through several development platforms is expected to raise the number of ammunition over the forecast period. Additionally, the rise in hostilities is expected to ascend the demand for ammunition in the Middle Eastern countries in the projected time frame.
Technological innovations for the replacement of brass-based bullet cases using polymer-based bullet cases are expected to offer growth prospects to the market. The application of polymer materials in bullets reduces the ammunition weight by over 40%, wherein the impact of the same is unaffected, thereby making the ammunition lighter and more accurate when compared to conventional bullets. Rising geopolitical issues, warlike situations, and increasing terrorist activities across the globe are leading to the rise in stockpiling of ammunition by prominent militaries and armed forces. This strategy is likely to offer cost savings as the ammunition is purchased in high volume at cheap prices. This is anticipated to support the market growth in the estimated time.
Ammunition Market Segmentation
Grand View Research has segmented the global ammunition market on the basis of caliber, product, end use, and region:
Based on the Caliber Insights, the market is segmented into Small Caliber, Medium Caliber, Large Caliber, Rockets, Missiles, and Other.
- The small caliber segment led the market and accounted for over 50.0% share of the global revenue in 2021. This trend is attributed to a wide array of small-caliber ammunition applications including shotgun pistols, assault rifles, rifles, and revolvers. Additionally, the segment is likely to witness the fastest growth over the forecast period on account of the increasing demand from security forces to tackle the rising number of instances of armed conflicts.
- Increasing procurement of medium caliber ammunition by the U.S. Army and its alliances such as air, land, and sea are expected to ascend the market growth in the estimated time. Moreover, the enhancements in medium caliber ammunition to penetrate light armor materials are likely to offer growth opportunities to the market.
- The medium caliber segment includes high-performance 20 mm, 25 mm, 30 mm, and 40 mm cartridges for a broad range of applications including land, sea, and air with the capability to penetrate light armor, material, and personnel target. The increasing application of guns and rifles by prominent militaries across the globe is anticipated to ascend the demand for medium-caliber ammunition.
Based on the Product Insights, the market is segmented into Rimfire, and Centerfire.
- The centerfire segment led the market and accounted for over 65.0% share of the global revenue in 2021. Centerfire ammunition is usually used for rifles, shotguns, and handguns. In centerfire ammunition, the primer is placed in the center of the casing base. This type of ammunition is reloadable and hence is the most common type of cartridge used.
- The rimfire segment is expected to register a CAGR of 3.1% in the forecast period owing to the increasing demand from shooters in light of the limited recoil offered by the product. Rimfire bullets are preferred by beginners as they offer limited recoil when they are being used. Moreover, they are cheaper as their thin casting with a flattened primer is easy to manufacture.
Based on the End-use Insights, the market is segmented into Civil & Commercial, and Defense.
- The defense end-use segment led the market and accounted for over 75.0% share of the global revenue in 2021. In addition, this segment is expected to maintain its lead over the forecast period. Increasing cross-border conflicts have fueled the growth of the bullets market across the globe. Moreover, rising geopolitical tension and terrorist activities are expected to increase the penetration of products.
- The semi-jacketed hollow-point bullets, known for their controlled penetration and high stopping power, can create a larger than average wound cavity and ensure effective results in a single shot. This bullet thus is typically used for self-defense, pistol target shooting, and backyard shooting. The rise in the procurement of enhanced products is likely to offer growth opportunities.
Ammunition Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Key companies generate a majority of their revenues through military and government channels. Their primary customers include the U.S. Department of Defense and intelligence community. Moreover, they deliver products to U.S. government customers including the Department of Homeland Security. These players are also involved in teaming and sub-contracting relationships with their competitors. Competition for major defense programs often requires teams to collaborate their broad capabilities to cater to customer requirements. Opportunities associated with these programs include roles as the provider of sub-system or component and programs integrator. Some prominent players in the global ammunition market include:
- 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
Order a free sample PDF of the Ammunition Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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