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Ammunition market size to grow at a CAGR of 4.29% from 2022 to 2027, Prevalence of geopolitical conflicts, political tensions, and cross-border issues to drive growth, Technavio

NEW YORK, March 8, 2024 /PRNewswire/ — The ammunition market is estimated to grow by USD 5.17 billion during 2022-2027. Moreover, the growth momentum will accelerate at a CAGR of 4.29% during the forecast period. The escalation of geopolitical tensions and cross-border issues is significantly propelling market expansion within the ammunition industry. Increasing military budgets and personnel bolstering, particularly in regions impacted by conflicts like the Middle East and Asia, including nations such as South Korea, Russia, and Japan, are driving the demand for large-caliber ammunition. Moreover, heightened R&D investments and technological advancements are further fuelling revenue growth. Similarly, the surge in demand for small and medium-caliber weapons is attributed to regional unrest and conflicts. Notably, Ukraine’s recent announcement to boost military spending by USD 8.3 billion amid the RussiaUkraine war underscores the market’s trajectory towards sustained growth, fueled by heightened demand for ammunition.

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Market insights –

  • Vendors: 15+, including Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Global Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Global Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. de C.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Nexter KNDS Group, Northrop Grumman Systems Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poonfsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, Vista Outdoor Inc., among others
  • Coverage: Parent market analysis; key drivers, major trends, and challenges; customer and vendor landscape; vendor product insights and recent developments; key vendors; and market positioning of vendors
  • Segments: Product (small caliber, medium caliber, and large caliber), application (defense, civil, and commercial), and geography (North America, APAC, Europe, Middle East and Africa, and South America)

In 2017, the ammunition market was valued at USD 19.52 billion. From a regional perspective, North America held the largest market share, valued at USD 6.90 billion.

Key Companies

The global ammunition market is moderately competitive, marked by the presence of many prominent players competing for a larger market share. Technavio report analyzes the market’s competitive landscape and offers information on several market vendors, including

  • Elbit Systems Ltd. – The company offers various ammunition such as cannon ammunition, medium caliber ammunition, mortar ammunition, and tank ammunition.
  • General Dynamics Corp. – The company offers various types of small-caliber ammunition used in defense.
  • Hanwha Corp. – The company offers ammunition such as mortar ammunition and 40mm grenade munitions.
  • Mesko SA – The company offers medium caliber ammunition, small caliber ammunition, mortar ammunition, and tank ammunition.

Market Segmentation

The market is segmented by product (small caliber, medium caliber, and large caliber), application (defense, civil, and commercial), and geography (North America, APAC, Europe, Middle East and Africa, and South America). The small caliber segment will account for a significant share of market growth during the forecast period. Small caliber ammunition refers to ammunition with a caliber of less than 20 mm. The growth of this segment is attributed to factors such as a rise in the demand for weapons for defense and recreational purposes. In addition, the rise in interest in hunting and shooting sports, particularly among younger generations, is fueling the growth of this segment.

Major trends 

  • Reduction of weight of ammunition
  • Growing asymmetric warfare worldwide
  • Advancement in small caliber

The weight of ammunition has decreased significantly owing to new material developments and manufacturing methods. Bullet casings are made of lightweight metals and composite materials, and the weight of propellants has been optimized. In the aviation sector, lighter aircraft lead to longer flight times and successful missions. Moreover, ammunition storage and transportation require fewer resources, which allows for more flexible and quick military operations. Such factors are expected to fuel market growth during the forecast period.

Key challenges

  • Rise in ammunition smuggling
  • Proliferation of illicit ammunition manufacturers
  • International measures to control ammunition use

The rise in ammunition smuggling is fueled by the high demand for firearms and related goods on the black market. Smugglers are employing strategies such as concealing ammunition in vehicles, shipping containers, and items such as clothing and toys. This makes it difficult for authorities to find smuggled ammunition. Moreover, the introduction of illegal firearms can lead to other criminal activities. These factors are expected to impede market growth during the forecast period.

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The ammunition market report provides critical information and factual data, with a qualitative and quantitative study of the market based on market drivers and limitations as well as future prospects.

Analyst Review

Global defense spending continues to soar as nations prioritize bolstering their military capabilities. This surge is particularly evident in the realm of infantry support programs where weaponry advancements and newer generation ammunition play pivotal roles. With an emphasis on enhancing penetrating power and efficacy, militaries worldwide are investing heavily in advanced weapons and the small caliber ammunition segment.

In response to evolving threats, training ammunition is being refined to better prepare troops for peacekeeping missions and counter-insurgency operations. The demand for reliable rifles equipped with calibers like 6.8 mm ammunition is escalating, with the AK-203 Kalashnikov assault rifles gaining prominence, especially through initiatives like the Indo-Russia Rifles Private Limited (IRRPL).

Armed forces, including their reserve force, are increasingly reliant on research and development to innovate fire and forget type munitions, amplifying the lethality of weapons on the battlefield. As suppliers of munitions compete to extend munition range and improve domestic production capabilities, emphasis is placed on developing indigenous models.

The interplay between global defense spending and the Ammunition Market underscores the significance of technological advancements in shaping military strategies. Geopolitical tensions further fuel military spending, driving innovation in munitions to meet diverse operational needs.

Within the Ammunition Market, technological advancements are not only enhancing the performance of existing products but also fostering the emergence of Higher calibers and local manufacturing capabilities. This shift is reshaping the Ammunition Market landscape, with an emphasis on efficiency, reliability, and scalability.

In conclusion, the Ammunition Market remains a critical component of global security, where innovation and investment intersect to meet the evolving demands of modern warfare. With geopolitical tensions driving military spending, stakeholders must remain vigilant in harnessing technological advancements to stay ahead in this ever-changing landscape.

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Market Overview

In the global defense spending, the Ammunition Market stands as a vital sector, facilitating infantry support programs and the development of cutting-edge weaponry. With a focus on newer generation ammunition, military forces continually seek to enhance their penetrating power through the acquisition of advanced weapons and innovative technologies. Within this landscape, the small caliber ammunition segment plays a pivotal role, catering to the diverse needs of modern militaries. As nations invest in bolstering their armed forces, the demand for ammunition remains robust, driving innovation and competition in the market. The quest for superior performance and reliability underscores the dynamic nature of this essential component of global security.

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Related Reports:

The NATO ammunition market size is expected to increase by USD 208.24 million from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 5.13%.

The defense logistics market is estimated to grow at a CAGR of 2.05% between 2022 and 2027. The size of the market is forecasted to increase by USD 3,998.66 million.


  1. Executive Summary
  2. Market Landscape
  3. Market Sizing
  4. Historic Market Size
  5. Five Forces Analysis
  6. Market Segmentation by Product
  7. Market Segmentation by Application
  8. Customer Landscape
  9. Geographic Landscape
  10. Drivers, Challenges, and Trends
  11. Company Landscape
  12. Company Analysis
  13. Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Technavio Research
Jesse Maida
Media & Marketing Executive
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Website: www.technavio.com/

SOURCE Technavio

Originally published at https://www.prnewswire.com/news-releases/ammunition-market-size-to-grow-at-a-cagr-of-4-29-from-2022-to-2027–prevalence-of-geopolitical-conflicts-political-tensions-and-cross-border-issues-to-drive-growth-technavio-302083112.html
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