Ammunition Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

INTRODUCTION

Ammunition is an object that can be fired from a weapon, such as bombs or bullets. It consists of the propellant, a projectile, and a primer, which ignites the propellant. It is made from a number of materials, including steel, brass, and others. Small and medium-sized projectiles are mostly utilized for civilian purposes, such as shooting sports and self-defense. The large-caliber projectile, with calibers ranging from 50mm to 240mm, is mostly employed for military applications. The market is driven by an increase in the acquisition of ammunition by defense forces, border security forces, and local law enforcement agencies as a result of increased terrorist activity, political upheaval, and geopolitical tensions. In addition, the increased demand for tiny caliber projectiles by citizens and the homeland security department due to their lower lethality would promote market expansion. The global ammunition market is expected to grow at the CAGR of 3.610% in the forecasted period.

The COVID-19 pandemic is expected to have a minor impact on ammunition market revenues. The increase in global defense spending and the launch of infantry benefit programs to create more complex and lethal weaponry and ammunition are expected to boost the adoption of newer generation ammunition with greater penetrating capability, propelling the ammunition market forward. Several new weapon and ammunition research efforts are also ongoing in order to generate lighter but more lethal ammunition with a greater range. Such improvements are being aided by the rapid expansion of technology.

GROWTH DRIVERS

The market will develop as consumers purchase more small caliber ammo for personal safety and as the number of shooting ranges increases. As terrorist attacks and mass shootings become more common, people are becoming more concerned about their personal safety, which is fueling demand for firearms. Fears of tougher gun control regulations grew as the shooting range sector expanded as a result of terrorism fears, and political rhetoric fueled the market's expansion.

The increasing occurrence of geopolitical tensions, political upheaval, and cross-border wars, particularly in the Middle East and Asia, will necessitate the strengthening of armed forces. Military expansion and increasing procurement of small, medium, and large-caliber ammunition would fuel global market growth. Large caliber ammunition is primarily utilized in defensive forces for combat activities in a number of countries, including Japan, Russia, and South Korea. Moreover, producers are increasing R&D investment to develop technically sophisticated ammo, fueling market expansion.

The strict government laws and regulations governing the use of firearms are a major impediment to the global market's expansion. Import-export regulations, technological transfers, and anti-corruption laws varies from country to country. Noncompliance with these standards can have a significant impact on market participants' activities, hence, lowering market revenue globally. Following the Christchurch shooting, New Zealand's government changed its firearms restrictions. It established strong gun-control restrictions, such as requiring only license holders to acquire firearms and conducting extensive background checks.

Most countries' revenues have declined as a result of the global spread of coronavirus. Because of the lockdown, ammo manufacturing businesses ceased production, resulting in a drop in gun and ammo sales. As a result, market expansion has taken a major hit.

AMMUNITION MARKET SEGMENTATION

By Application

·         Defense

·         Military

·         Homeland Security

·         Civil & Commercial

·         Sporting

·         Hunting

·         Self-defense

·         Others

 

By Caliber

·         Small

·         9mm

·         5.56mm

·         7.62mm

·         12.7mm

·         .338 Lapua Magnum

·         .338 Norma Magnum

·         14.5mm

·         Others (Small Caliber)

·         Medium

·         20mm

·         25mm

·         30mm

·         40mm

·         Large

·         60mm

·         81mm

·         120m

·         155mm

·         Others (Large Caliber)

·         Others

 

By Product

·         Bullets

·         Aerial Bombs

·         Grenades

·         Artillery Shells

·         Mortars

 

By Guidance Mechanism

·         Non-guided

·         Guided

 

By Lethality

·         Lethal

·         Less Lethal

 

By Region

·         North America

·         Europe

·         Asia Pacific (APAC)

·         Latin America

·         Middle East & Africa

 

REGIONAL OUTLOOK

During the projection period, North America is expected to be the largest market. This increase can be ascribed to increased R&D spending and the procurement of sophisticated ammunition from the United States Army. People are feeling more insecure as a result of COVID-19, which could lead to an increase in ammo and gun purchases in the United States. In February 2021, the FBI's National Instant Criminal Background Check System (NICS) recorded a 30 percent monthly increase in background checks for handguns and long weapons. As a result, the market in North America will increase at an exponential rate by the progressing years. Ammo sales are occurring through shop hoarding, although ammo manufacture has ceased in several states owing to lockdown.

During the projection period, Asia-Pacific would experience significant market expansion. The rise of armed forces in countries such as China, India, South Korea, and others is credited with the increase. In addition, rising defense spending and military modernization initiatives in nations like India, Japan, and China will propel the industry forward throughout the region.

Increased expenditure of firearms and projectiles in nations such as Russia, Germany, the United Kingdom, and others in Europe would drive the market across the area due to increased demand for defense and commercial uses. Due to increased defense spending in countries such as Saudi Arabia, Israel, and others, the Middle East will experience tremendous growth. During the forecast period, the remainder of the world will increase at a moderate pace. This increase is due to several countries in the region raising their defense spending and strengthening their armed forces.

KEY COMPANIES IN AMMUNITION MARKET

The research report offers a competitive analysis of prominent companies operating in the global ammunition market. Some of the leading players profiled in the market research report include:

·         BAE Systems PLC

·         Rheinmetall AG

·         Elbit Systems Ltd

·         Nexter Group

·         General Dynamics Corporation

·         Nammo AS

·         RUAG Group

·         Singapore Technologies Engineering Ltd

·         Denel SOC Ltd

·         Northrop Grumman Corporation

·         MESKO SA

·         CBC Global Ammunition

·         Indian Ordnance Factories

·         Saab AB

·         Hanwha Corporation

·         ARSENAL JSCo.

·         ASELSAN AS

·         Other Players