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Worldwide: 91.703.051.960 (24x7)
Industry Insights, Market Size, CAGR, High-Level Analysis: Ammunition MarketThe global ammunition market size was estimated at USD 20.40 billion in 2019 and is expected to exhibit a CAGR of 3.9% from 2020 to 2027. Rapid rise in procurement of defense equipment by militaries across the globe on account of growing hostilities and terrorist activities is expected to drive the demand. Small caliber ammunition is emerging as one of the fastest moving segment owing to rise in demand for mild sports shooting activities using pistols and rifles. In addition, technological advancements such as development of light weight bullets using polymer casing is expected to further aid the growth. High procurement of small caliber ammunition by homeland security department and civilians owing to lesser lethality as compared to other ammunition is expected to bolster the overall market growth. In addition, emergence of online sales channel for small caliber ammunition is also expected to drive the demand for ammunition in the forthcoming years. Growth in the manufacturing of light weight ammunition using advanced materials is expected to lead fuel efficient transportation, thereby notably reducing the overall transportation cost. This trend is further expected to enable soldiers to carry more rounds of ammunition with the same weight, thereby positively influencing the overall market growth. Rapid growth of illegal weapon trade is expected to supplement conflicts and are also likely to heighten civilian casualties. These factors are forcing governments to impose strict regulatory policies regarding the production, exports and imports, and use of arms and ammunition. This is expected to restrict the market growth over the forecast period. The ammunition market is characterized by the acquisitions and collaborations between the government and major players to establish long term agreements. Governments of several countries especially India are planning to expand their defense capabilities through foreign procurement and development of indigenous production facilities over the next decade.
Caliber InsightsSmall caliber ammunition held the dominant market share of 50.7% in 2019, owing to vast applications such as rifles, revolvers, shotguns pistols, and assault rifles. It is expected to witness fastest growth over the forecast period, on account of rising demand from homeland security forces to restrain the rising instances of armed conflicts. Medium caliber ammunition segment is expected to witness notable growth owing to rising procurement by the U.S. army and its alliances for a broad spectrum of applications including land, sea, and air. In addition, development of medium caliber ammunition with enhanced capability to penetrate light armor and materials is expected to further boost the demand. Rockets and missiles segment is expected to witness a notable CAGR of 3.8% during the forecast period, as U.S. and Russiathe two key defense spenders in the worldare moving toward the strategic nuclear renewal. The U.S. defense sector is focusing on upgrades and enhancements of its nuclear warhead, thereby positively influencing the growth of rocket and missiles segment. Furthermore, the U.S. defense sector has also proposed novel space force and also intends to develop an expanded program for ballistic missile defense over the next decade. The aforementioned trends are projected to heighten the demand for design, development and manufacturing advanced weapons, thereby creating growth opportunities for the market.
Application Insights of Ammunition MarketDefense sector accounted for 88.5% of the overall revenue share in 2019 and is expected to dominate the market over the forecast period. Rising geopolitical tension has fueled the demand for ammunition in defense segment. In addition, the military forces across major economies are continuously modernizing their weaponry, hence boosting the ammo sales. Hollow-point ammunition is highly preferred by the military and law enforcement personnel owing to their high precision, rapid expansion property, and excellent stopping power. Air-force tends to use hollow-point ammunition owing to its greater accuracy, whereas full metal jacket ammunition is used at larger scale in military handguns. Civil and commercial segment is expected to witness substantial CAGR of 4.5% in the forthcoming years, owing to rising demand for applications such as hunting, and shooting. The industry exhibits a vast product line of ammunition for shooting sports, wherein the selection of the product is dependent on the type of the sport. It also plays a vital role in maintaining the optimal performance and firearm safety. Superior features offered by .44 caliber lead nose bullet, such as high penetration and velocity is increasing its application in skeet shooting and trapshooting. While the Wadcutter bullets are predominantly used for practice and competition rounds owing to its high influence on precision and power, whereas semi-wadcutter bullets are preferred by personnel for self-defense.
Product Insights of Ammunition MarketRimfire ammunition is expected to register a CAGR of 3.7% over the forecast period on account of rising demand from amateur shooters owing to limited recoil feature offered by the product. In addition, the aforementioned product segment incurs lower production cost owing to its structure that features thin casting coupled with a flattened primer. Commonly used rimfire ammunition includes .17 Winchester Super Magnum, .17 Hornady Magnum Rimfire, .22 Long, and 22 Long Rifle, and others. Rimfire is used for range plinking and varmint hunting, however, it is not preferred for personal defense. Although rim ammunition is a comparatively cheaper alternative, it is limited to small calibers. Centerfire ammunition dominated the global ammunition market, accounting for 70.2% of the overall market in 2019. Centerfire ammo is defined as a universal standard across all defense forces including homeland security, military, and other security forces in majority of countries owing to its ability to reuse casings and withstand high pressures. Centerfire ammunition structure features a strong base that allows it to withstand high pressure, thereby offering higher energy and velocity to the bullet. This type of ammunition is highly used in military operations due to its thicker metal casing, which can withstand rough handling without much damage and also they are comparatively safer to handle.
Regional Insights of Ammunition MarketNorth America recorded a revenue USD 6.73 billion in 2019 and is projected to register an exponential growth during the forecast period, on account of defense expenditure in U.S. In December 2019, the U.S. senate passed USD 738 billion defense policy which includes creation of a novel space force, thereby creating growth opportunities for the overall market. In addition, the Industrial Security Index signed between U.S. and India in December 2019, is expected to facilitate the partnership between U.S. defense companies and the Indian private sector. This in turn is projected to lead to clear the pipeline for several multi-million dollar deals of defense equipment, thereby driving the market growth. Asia Pacific is projected to register a CAGR 4.8% over the forecast period owing to rise in spending on upgradation of defense capabilities in countries, such as India and China to handle heightening geopolitical pressures. In addition, intensifying competition between China and U.S. in terms of advancing technologies and acquisitions is projected to boost the development of defense system in China. Government of India is continuously making efforts to enhance its military capabilities through increasing defense expenditures and privatization of ordnance factories. In addition, the government is employing efforts to reduce the procurement lead time of defense equipment for militaries, thereby providing an aid to the regional market growth.
Market Share Insights of Ammunition MarketKey companies, such as General Dynamic Corporation, Northrop Grumman, and BAE Systems, generate majority of their revenues through military and government channels. Their primary customers include the U.S. Department of Defense and intelligence community. Moreover, they also deliver products to the 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.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Ammunition Market Research ReportThis report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global ammunition market report on the basis of caliber, product, application, and region:
Caliber Outlook (Revenue, USD Million, 2019 - 2030)
- Small Caliber
- 5.56 mm
- 7.62 mm
- 7.62 x 51 mm
- 7.62 x 39 mm
- 9 mm
- 9 x 18 mm
- 9 x 19 mm
- Medium Caliber
- 23 mm
- 30 mm
- Large Caliber
- 122 mm
- Rockets, Missiles and Other
- Tank Ammunition
- Artillery Ammunition
Product Outlook (Revenue, USD Million, 2019 - 2030)
Application Outlook (Revenue, USD Million, 2019 - 2030)
- Civil & Commercial
- Self Defense
- Law Enforcement
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation & Scope 1.2 Assumptions 1.3 Information Procurement 1.3.1 Purchased Database 1.3.2 GVR’s Internal Database 1.3.3 Secondary Sources 1.3.4 Third Party Perspective 1.3.5 Primary Research 1.4 Information Analysis 1.4.1 Data Analysis Models 1.5 Market Formulation and Data Visualization 1.6 Data Validation an | read more...