Ammunition Market Research Report and Outlook by 2028

The ammunition sector is projected to expand from US$ 43.04 billion in 2022 to US$ 69.75 billion by 2028, reflecting a compound annual growth rate (CAGR) of 8.4% during this period.

In 2022, Europe is anticipated to secure the second-largest share of the ammunition market. Companies in this region are concentrating on the development of sophisticated ammunition types, such as precision-guided missiles and mortars. European nations are investing in artillery and mortar systems to safeguard their borders against illegal incursions and various trafficking activities. The presence of leading ammunition manufacturers like Nammo AS, Nexter Group, Rheinmetall AG, Rostec State Corporation, and Thales Group is fulfilling the demand across Europe. This concentration of prominent players is fostering the growth of firms that produce aerial bombs, grenades, artillery shells, mortars, and similar equipment. Additionally, the growing interest among manufacturers in creating artillery systems, mortar systems, firearms, smart weapons, and other related equipment is propelling the expansion of the ammunition market in Europe.

Russia's ammunition industry holds a significant position globally, recognized for its cost-effectiveness and ease of maintenance compared to other options. Notably, Russia ranks as the second-largest exporter of ammunition worldwide, accounting for 19% of global exports from 2017 to 2021. However, the country's ammunition production is heavily dependent on international suppliers for raw materials and components, making it susceptible to supply chain disruptions. Consequently, Russia is likely to lose its competitive edge to nations such as China, India, Turkey, and several European countries. The ongoing conflict between Russia and Ukraine has prompted other nations to seek regional or domestic manufacturers instead. As a result, China and India, along with the United States, are expected to gain from Russia's decline in ammunition production and exports. Given that Russia's primary ammunition clients include Vietnam, Myanmar, Indonesia, and Malaysia, these countries may need to turn to China or India for their ammunition requirements if Russian production continues to diminish.

Effects of the COVID-19 Pandemic on the Global Ammunition Market

The COVID-19 pandemic has triggered a notable increase in the demand for firearms and ammunition across both commercial and defense sectors, resulting in a shortage of essential raw materials such as primers, casings, and gunpowder. This scarcity has led to a deficit of ammunition in major military spending nations like the United States and China. While defense supplies remained largely stable due to contract-based transactions, commercial sales experienced an unprecedented surge that outstripped manufacturers' production capabilities, leading to market shortages. Furthermore, vendors were reluctant to increase production capacities in response to the heightened demand, fearing a potential future decline in demand, which has hindered the growth of the ammunition market in various regions.

Throughout the forecast period, the Asia Pacific region is expected to experience the highest CAGR in the ammunition market. This growth is driven by a rise in terrorist activities and geopolitical tensions. Conflicts such as those between Pakistan and India, China and India, China and Taiwan, and China and Japan have intensified the demand for ammunition in the Asia Pacific. Countries like China and India are modernizing their military forces, resulting in increased ammunition purchases for their armed forces and law enforcement agencies. The ammunition market in this region is bolstered by established manufacturers such as HIFaser, Kongsberg Defense Australia, Thales Australia, Munitions India Limited, and Yantra India Limited, among others, in China, India, Australia, and Japan, which is expected to further stimulate market growth in the coming years.

In Europe, heightened defense spending due to cross-border conflicts is propelling the growth of the ammunition market. Germany and Belgium have already declared plans to double their defense budgets in 2023 for national security initiatives, while the ongoing conflict between Russia and Ukraine is raising alarms in other European nations.

The ammunition market is primarily dominated by key players such as Northrop Grumman Corporation, BAE Systems, Elbit Systems Ltd, Raytheon Technologies Corporation, Vista Outdoor Operations LLC, AMTEC Corporation, NAMMO AS, Rheinmetall AG, RUAG Group, and Thales Group. Additionally, companies like Nexter Group KNDS, General Dynamics, Spectra Technologies LLC, CBC Global Ammunition, FIOCHHI MUNIZIONI SPA, Denel SOC Ltd., Sako Limited, Berger Bullets, NonLethal Technologies Inc., Cutting Edge Bullets, Sierra Bullets, Belom, and Combined Systems Inc. are also examined to provide a comprehensive overview of the market. These organizations employ various organic and inorganic growth strategies to enhance their product offerings and global footprint in the ammunition sector.

The overall size of the ammunition market has been determined through both primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the ammunition market size. This process also aims to provide an overview and forecast of the growth of the ammunition market across all segments. Furthermore, multiple primary interviews have been conducted with industry participants and experts to validate the data and gain deeper analytical insights into the subject. Participants in this process include VPs, business development managers, intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the ammunition market.