Ammunition Market Research Report Information BY CALIBRE (Small, Medium, Large), BY PRODUCT (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars) BY COMPONENT (Fuzes & Primers, Propellants, Bases, Projectiles and Warheads, Others) BY GUIDANCE MECHANISM (Non-Guided, Guided) BY LETHALITY (Lethal, Less-lethal) BY APPLICATION (Defense, Civil & Commercial And By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Market Forecast Till 2032

Global Ammunition Market Overview

Ammunition Market Size was valued at USD 23,469.05 Million in 2023. The Ammunition market industry is projected to grow from USD 24,462.11 Million in 2024 to USD 33,887.62 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.16% during the forecast period (2024-2032). The Ammunition Market is consistently growing due to the rising number of armed conflicts and border disputes across globe. Furthermore, Modernization of military and law enforcement agencies is likely to drive the region’s market throughout the forecast year.

As per Analyst at MRFR, “Factors that have a profound impact on the performance of the ammunition market are those related to regional security, military modernization processes, and, finally, threats of terrorism. In the Asia-Pacific region, internal conflicts and sub-state disputes are major drivers, according to Ibakwa Owech. The above-mentioned intra-state violence, which has been on the rise, has its roots in the weak structure of states combined with ethnic tensions, thus increasing demand for arms. All this instability complicates regional security dynamics, with conflicts spilling across borders, a situation witnessed in separatist movements in Indonesia. The military modernization-for instance, the production of artillery by the U.S. Army-is being ramped up to meet the needs created by ongoing global conflicts, one such example being the situation in Ukraine. Current production rates will be increased substantially by the Army while investing in state-of-the-art manufacturing technologies. Apart from that, the growing threat of terrorism also prompted many nations to upgrade their military capabilities through acquiring advanced ammunition. All these factors put together reflect a demand generated by conflict, modernization, and security requirements that point out the ammunition market's future direction.

Figure1: Ammunition Market, 2019 - 2032 (USD Million)

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Ammunition Market Opportunity

INCREASED MILITARY MODERNIZATION EFFORTS

The U.S. Army is raising the stakes on military modernization, especially in artillery production, to keep pace with requirements that started to grow fast with active global conflicts. The service hopes to achieve a rate of 100,000 155 mm shells per month by 2025 and is currently working up to 70-80,000 shells a month by early 2025. While this output boost is to supply Ukraine's defense against Russia, it is also for replenishing U.S. and allied stockpiles. The organization is investing in manufacturing technologies. It focuses on robotics that could produce the enhanced level of quality and efficiency for which an investment is being made. It is worth $500 and is said to be changing the production ways at Texas artillery plants, modifying the workers' workforce in the direction of more technical jobs and not job cutting. Its capacity at Scranton Army Ammunition Plant has been increased from 24,000 to 36,000 rounds a month, with a further prospect of expanding by setting up new lines for the manufacturing of these rounds. The U.S. has already delivered over 3 million 155 mm rounds to Ukraine since 2022.

Modernization efforts transcend standard ammunition, however, and focus on precision weapons such as Javelin and Patriots, which are critical for future conflict scenarios with the likes of China. All these are aspects the Army understands, considering that knowing where and how much of everything it has is critical to ensure the most accurate deterrence and operational readiness; this emphasizes the strategic nature of modernizing its capacity.

Ammunition Market Method Segment Insights:

Ammunition Caliber Insights

Based on Caliber, Based on Caliber, the Ammunition Market has been segmented into small, medium, and large. The large segment held the majority share in 2023, contributing around ~67.5% to the market revenue. Large Caliber includes 50 mm, 105 mm, and 120 mm direct fire ammunition. Platforms support the include Stryker Mobile Gun System (MGS), and Abrams Tank. Several ammunition manufacturers have developed the 120 mm support Armored Brigade Combat Teams. Currently 120 mm ammunition consists of advanced generation kinetic energy round as well as multipurpose round. The M829A4 KE ammunition is optimized for defeating advanced armor threats. The XM1147 Advanced Multi-Purpose cartridge is a high energy multi-purpose munition created to deliver blast, fragmentation effect, and armor penetration effects of longer and close-range targets. The XM1147 Advanced Multi-Purpose round consolidates the ability for 4 legacy rounds: the first generation M830 high explosive anti-tank round, the second generation M830a1 heat round, the M908 obstacles reduction round as well as M1028 Cansiter cartridge. The M1028 is a shotgun cartridge that provides fatal fire against massed infantry. The Advanced Multi-Purpose cartridge can be programmed in 3 different modes depending on engagement including point detonate, point detonate delay, or airburst.

Figure2: Ammunition Market, by Method, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Ammunition Market Product Segment Insights:

Ammunition Product Insights

Based on Product, the Ammunition Market segmentation includes Based on product, the Ammunition Market has been segmented into: Bullets, Aerial Bombs, Grenades, Artillery Shells, and Mortars. The Bullets segment held the majority share in 2023 contributing around ~30.2% to the market revenue. It is a kinetic projectile, one of the components of firearm ammunition that is shot from the barrel of a gun. They are made of various materials such as lead, copper, steel, rubber, polymer and even wax as well as are made in different shapes including certain functions such as target shooting, hunting, combat, and training. Bullets are often tapered thus making it aerodynamic.

Ammunition Market Component Segment Insights:

Ammunition Component Insights

Based on Technology, the Ammunition Market segmentation includes Based on Component, the Ammunition Market has been segmented into: Fuzes & Primers, Propellants, Bases, Projectiles and Warheads, and Others. Projectile & Warhead segment hold the majority market share in 2023 contributing 42.6% of the market share. A method commonly used for moisture content determination is the loss-on-drying method, or LOD. It is used to specify many major quality specifications. This is based on the thermogravimetric principle, in which a substance is heated until no more weight is lost, that is, it is completely dry. It works on the principle of emitting a high-frequency signal and then measures the frequency change due to the capacitance presented by the material. The Ammunitions are non-destructive, indirect methods, capable of giving an accurate moisture percentage reading within seconds. This can easily be achieved in a moisture sensor by placing two conductive plates near each other, forming a capacitor.

Ammunition Market Guidance Mechanism Segment Insights:

Ammunition Guidance Mechanism Insights

Based on the Guidance Mechanism, Based on Guidance Mechanism, the Ammunition Market has been segmented into: Non-Guided, and Guided. By Application, Food & Beverage segment hold the majority market share in 2023 contributing 53.3% of the market share. Non-guided ammunition refers to traditional munitions that lack advanced targeting systems, relying solely on ballistic trajectories for accuracy. This category includes standard artillery shells, mortars, and small arms ammunition. While generally less expensive and simpler to produce, non-guided munitions can be less effective in precision strikes, leading to potential collateral damage. Despite these limitations, they remain widely used due to their reliability and availability in various military applications.

Ammunition Market Applications Segment Insights:

Ammunition Applications Insights

Based on the Applications, Based on Application, the Ammunition Market has been segmented into: Defense, and Civil & Commercial. Defense segments hold the majority market share in 2023 contributing 88.4% of the market share. It is the organization of the region's army and has weaponry available to protect its interest. The defense system generally consists of the air force, navy, and Military. The national interest is not protected by active involvement in ensuring sovereignty, unity, independence, and territorial integrity under the scenario of combating any type of aggression.

Ammunition Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 37.2% in the Ammunition market in 2023 and is expected to maintain its dominance during the forecast period. Military spending is growing at a rapid rate, with a rise in procurement of advanced sea, land, as well as air vehicles, along with the development of technological innovation systems are driving the market. This is attributed majorly due to the procurement of ammunition by local enforcement agencies, armed forces, as well as border security forces to minimize the threats arising because of territorial conflicts, terrorism, and geopolitical tensions. The countries in North America are procuring ammunition systems for protecting their borders, thus generating demand in the market. For example, the US army has awarded USD 522 million in orders to 2 companies for manufacturing 155 mm artillery ammunition for Ukraine. The Global Military Products Inc. and Northrop Grumman System Corp. This contract is funded by the Pentagon's Ukraine Secure Assistance initiative. Furthermore, Northrop Grumman and Rheinmetall have entered into agreement to work in the field of precision guided enable range artillery ammunition. During this period both companies plan for cooperating in order to develop ammunition technology for the international market and the United States for supporting future artillery operations. Thus, increasing defence spending by the countries in the regions is driving the market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Recent Development News :

In February 2023, Remington Arms Company LLC launched its new product line. The company announced updates in its existing product line of handguns, shotshells, rimfire and rifles.

In February 2023, a new product line was introduced by Remington Arms Company LLC. The firm has also made revisions to its already existing product line of handguns, shotgun shells, rimfires and rifles.

In 2023, two brands of Vista Outdoor Inc., CCI and Speer Ammunition, introduced new products in its ammunition line, which are two. The new products include CCI's Clean-22 Hyper Velocity and Speer's Gold Dot Carbine ammunition, and they will be displayed at the SHOT Show 2023 held in Nevada.

In January 2023, The police from a few states in India sought permission from the commerce ministry's Government e-marketplace (GeM) platform to allow for the sale of small arms so that states can acquire such arms at reasonable rates through the public procurement mechanism. At the moment, GeM does not have the authority to permit the sale of small caliber and any other types of weapons.

In January 2023: During this time, the Indian Army also sought to procure locally 5,000 units of 9×19 mm machine pistol as an ‘Emergency Procurement' through the Fast Track Procedure (FTP) of the Defense Acquisition Procedure with an estimated expenditure requirement of USD 6 million.

In July 2024, the Swiss Confederation ended an agreement with the Rheinmetall company for the production and supply of 81mm mortar cargo ammunition. The order is expected to be completed by Rheinmetall in 2025 and this has also strengthened the company's position in the global ammunition market.

In August 2024, the Defense Minister of Estonia, Mr. Hanno Pevkur, disclosed a plan for Estonia to commence the production of ammunition in 2025. The military town of Emari is reported to be the site that will be chosen for the commencement of the production as Estonia aims at increasing its ammunition production so that it can meet its requirements without having to rely too much on imports.

Secon Engineering Projects Pvt. Ltd. launched a new barge that consists of missiles and ammunition intended for the Indian Navy in June 2024. The new offerings are designed and manufactured in India after the same was contracted to Secon in February 2021.

Ammunition Key Market Players & Competitive Insights

The competition in the Ammunition Market is high, and this is due to the presence of several key players such as Thales Group, BAE Systems and Rheinmetall AG. These companies have a long experience, state of the art technologies and have huge production facilities to support them. Government tenders play an important role in this sector as they give stable revenue and long term business relationships. Some of the key stakeholders in this market such as General Dynamics Corporation and Nammo AS have established strategic partnership with national defense ministries and military organizations, which greatly impacts the market position. The last one is Research and development which is fundamental in sustaining competitive advantage. Some of the industry leaders such as Rheinmetall AG and Nexter Group spend a significant amount of money in research and development to come up with smart munitions and smart ammunition systems. The use of technology including adopting Artificial Intelligence and automation as a competitive weapon is another force, where companies like Northrop Grumman and Saab AB are in front of other competitors. The industry has high entry barriers for new and small firms, which include high capital intensity, regulatory hurdles, and high technology requirements. Technological resources are well developed and accumulated, supply channels are difficult to break in, and brand recognition is well established making it difficult for new entrants to penetrate the market. As with any other market, competition in the ammunition market depends on aspects such as product quality, dependability and affordability. Some of the players that share this industry’s value include Federal Ammunition, and Olin Corporation that strive to offer market-standard products that are also very reliable while others such as General Dynamics Corporation and Singapore Technologies Engineering Ltd that aim at offering market solutions that are relatively cheaper. First, customer relationships with the military and law enforcement agencies also add to the competitive nature and second, Aguila Ammunition and CBC Defense have established a strong customer base in this segment. Secondly, the globalization and sustainability factors are the factors that are becoming significant. Some firms have operations in more than one country, for instance Nammo AS and Rheinmetall AG which are in a better place to meet the needs of diverse markets around the world. There is also a concern for the environmental concerns and sustainability, and Nexter Group is not exceptional as it adapts to environmentally sustainable solutions. In general, the Ammunition Market is characterized by high competitiveness due to key players, technology, government tenders, and changing market requirements.

Key Companies in the Ammunition market include

• Gates Corporation


• Mitsuboshi Belting Ltd.


• Contitech Dutchland GMBH


• Optibelt GMBH


• The Timken company


• Hanna Rubber Company


• Bando Chemical Industries, Ltd.


• JK Fenner


• Pix Transmissions Ltd.


• G. Balakrishan & Bros. Ltd.


• The Goodyear Tire & Rubber Company


• Dayco Corporation


• Polaris Inc.


• Foshan Aolida Transmission Belt Co. Ltd.


• Evolution Powersports.

Ammunition Industry Developments

• January 2024, Federal Ammunition announces the addition of Freight Train Copper to its lineup of tipped sabot slugs in 12- and 20-gauge. The new product was recently announced and on display during the 2024 SHOT Show in Las Vegas, Nevada.


• July 2024, The Dusseldorf-based technology group Rheinmetall has been commissioned by the Swiss Confederation to manufacture and supply 81mm mortar cargo ammunition. The total value of the order is in the mid double-digit million-euro range.

Ammunition Market Segmentation

• Small


• Medium


• Large

• Bullets


• Aerial Bombs


• Grenades


• Artillery Shells


• Mortars

• Fuzes & Primers


• Propellants


• Bases


• Projectiles and Warheads


• Others

• Non-Guided


• Guided


• BY LETHALITY


• Lethal


• Less lethal

• Defense


• Civil & Commercial

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Russia
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Indonesia
  
  
  • Rest of Asia Pacific
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of MEA