The global Ammunition market is projected to grow at a CAGR of 3.2% during the forecast period (2021-2027). The major aspect that drives the growth of the market includes the rising terrorists and hostilities across the globe. The rapid increase in the procurement of defense equipment by militaries due to the rising investment in defense sector, increasing hostilities among countries, and growing terrorism around the globe is expected to drive the growth of the market. Another major factor that propels the growth of the market is the increasing popularity of sports such as shooting that includes the use of rifles and pistols; which is further likely to prompt the demand for small-caliber ammunition during the forecast period.

On the other hand, various technological advancements in the existing ammunition products such as lightweight bullets made from polymer-based cases; along with the receival of various contracts by the companies have also made the companies to invest in novel product designs which is also projected to support the overall market growth during the forecast timeframe.

Segmental Outlook

The global ammunition market is segmented on the basis of product type, application and end-user. Based on the product type, the market is segmented as small caliber, medium caliber, and large caliber. Based on the application, the market is segmented as non-lethal and lethal. While, based on the end-user, the market is segmented as civilian and military.

Large Caliber Segment in the Ammunition Market to Hold a Significant Market Share 

Amongst the product type segment of the global ammunition market, the large caliber segment is projected to hold the most lucrative share in the market. The segmental growth of the market is accredited to the increasing military spending along with the terrorist activities and political tension between countries across the globe. The total global military spending increased to $1,917 billion, in 2019, as per the Stockholm International Peace Research Institute (SIPRI). The increased military spending represents a total rise of 3.6% from 2018. On the other hand, the US, China, India, Russia and Saudi Arabia are among the top five major countries that significantly invests in military spending, accounting for 62% of the total global military spending; majorly in large calibers. Thus, this is likely to contribute to the growth of the market during the forecast period. 

Global Ammunition Market, by Product Type 2020 (%)

Regional Outlook

The global ammunition market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The North American region is projected to hold a significant market share. The US and Canada are the major economies primarily contributing to the growth of the ammunition market in the region. The regional growth of the market is accredited to the significant spending of the military & defense sector in the countries in the region. As per the Stockholm International Peace Research Institute, SIPRI, the military spending in the US increased by 5.3% to $732 billion and held 38% of global military expenditure. Hence, this is likely to contribute to the growth of the market during the forecast period. Further, the Asia-Pacific region is also estimated to witness a significant value for the market, attributing to the shifting focus of the India’s and China’s government towards enhancing and upgrading the military systems.

Global Ammunition Market, by Region 2020 (%)

Market Players Outlook

The prominent players functioning in the global ammunition market include BAE Systems Plc, General Dynamics Corp., Nammo A/S, Nexter Group, Northrop Grumman Corp., Remington Arms Co., Rheinmetall AG, Sierra Bullets, and Vista Outdoor Inc. among others. These key manufacturers are adopting various strategies such as new product launches and approvals, merger and acquisition, partnerships and collaborations, and many others in order to thrive in a competitive environment. For instance, in March 2020, BAE Systems Plc received a contract by the US Army for the supplying of advanced BONUS munitions. BONUS is a 155-millimeter munition which is specifically engineered to destroy armored targets. BONUS will also be employed by the Army’s fleet of M109 self-propelled howitzers and M777 ultra-lightweight towed howitzers. These deliveries are expected to start in 2021. Such big orders from the US army is likely to contribute to the growth of the company as well as the global ammunition market during the forecast.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Ammunition market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.