Ammunition Market Research Report and Outlook by 2028

The ammunition market is expected to grow from US$ 43.04 billion in 2022 to US$ 69.75 billion by 2028; it is estimated to grow at a CAGR of 8.4% from 2022 to 2028.

In 2022, Europe is projected to hold the second-largest share in the ammunition market. The region's ammunition market players are focusing on developing advanced ammunition types, including precision-guided missiles and mortars. European countries are procuring artillery and mortar systems to protect their borders from illegal trespassing and various forms of trafficking. The presence of top ammunition market players like Nammo AS, Nexter Group, Rheinmetall AG, Rostec State Corporation, and Thales Group is meeting the demand across the European region. This presence of leading ammunition market players is contributing to the growth of companies that produce aerial bombs, grenades, artillery shells, mortars, and other such equipment. Furthermore, the manufacturers' increasing interest in producing artillery systems, mortar systems, guns, smart weapons, and other equipment is driving the growth of the ammunition market in Europe.

Russia's ammunition industry is globally significant, known for its affordability and ease of maintenance compared to other alternatives. In fact, Russia is the world's second-largest ammunition exporter, with 19% of global exports during 2017-2021. However, Russia's ammunition manufacturing heavily relies on international suppliers of raw materials and components, leaving it vulnerable to supply chain disruptions. As a result, Russia is expected to lose its market position to countries like China, India, Turkey, and some European countries. The recent conflict between Russia and Ukraine has prompted other countries to turn to regional or domestic manufacturers instead. As a result, China and India, in addition to the US, are expected to benefit from Russia's decline in ammunition manufacturing and exports. Given that Russia's major ammunition customers include Vietnam, Myanmar, Indonesia, and Malaysia, their governments may have to turn to China or India for their ammunition needs if production volumes from Russian manufacturers continue to decline.

Impact of COVID-19 Pandemic on Global Ammunition Market

The COVID-19 pandemic has led to a surge in the demand for firearms and ammunition in both commercial and defense applications, causing a scarcity of raw materials like primers, casings, and powder. The shortage has led to a deficit of ammunition in major military spending countries such as the US and China. Defense supplies were largely unaffected, thanks to contract-based transactions, but commercial sales witnessed an unprecedented demand that manufacturers' production capacity couldn't match, leading to a shortage in the market. Moreover, as vendors were hesitant to boost their production capacities in response to the surge in demand, fearing a potential future drop in demand, the ammunition shortage has been impeding the growth of the ammunition market in various regions.

Throughout the forecast period, the Asia Pacific region is expected to witness the highest CAGR in the ammunition market. The growth in this region is fueled by the increase in terrorist attacks and geopolitical tensions. Conflicts like Pakistan-India, China-India, China-Taiwan, and China-Japan have escalated the demand for ammunition in Asia Pacific. Modernization of military forces is being undertaken by countries like China and India, leading to a surge in ammunition purchases for their armed forces and law enforcement agencies. The ammunition market in Asia Pacific is supported by the presence of 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 drive market growth in the region in the coming years.

Increased defense spending due to cross-border conflicts in Europe is driving the growth of the ammunition market in the region. Germany and Belgium have already announced their intention to double their defense spending in 2023 for national security operations, while the ongoing war between Russia and Ukraine is raising concerns in other European countries.

The ammunition market is dominated by major 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. In addition, 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 analyzed to gain a comprehensive view of the market. These companies use various organic and inorganic growth strategies to expand their product portfolios and global presence in the ammunition market.

The overall ammunition market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the ammunition market size. The process also serves the purpose of obtaining an overview and forecast of the ammunition market growth with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. Participants of 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.