The smoke grenade market is projected to reach US$ 456.46 million by 2031 from US$ 297.24 million in 2023; the market is expected to register a CAGR of 5.5% during 2023-2031.

The military forces worldwide conduct drilling operations to keep their forces trained all the times. The military training exercises combine various types of military operations and involve a lot of pyrotechnic munitions, including smoke grenades, to create a live simulation environment. The pyrotechnic munition companies collaborate with military forces to supply an adequate volume of smoke grenades for the military's live simulation training exercises. This has led to an increase in the adoption of live pyrotechnic munitions, such as illumination signal rounds, markers, and smoke grenades, across different regions.

Military exercises organized during the nighttime involve many pyrotechnic illuminations and signaling rounds, which is another major factor supporting the adoption of pyrotechnic munition for live training simulation, including the colored smoke grenades. For instance, in April 2021, the US Army conducted a live training in Pulaski Country (Arkansas) wherein two Boeing Chinook Helicopters carried out the military cadets for a 4-day exercise. Under this operation, colored smoke canisters, illumination fire rounds, and other types of pyrotechnic munitions were used. Similarly, in March 2021, the Joint Multinational Readiness Center Dragon Team of the US military conducted a fire marker training session at Hohenfels Training Area, wherein the fire marker training involved replicating threats, such as roadside bomb blasts and indirect fire, and using smoke to simulate close-air support. The increase in the use of pyrotechnics for military training is catalyzing the smoke grenade market.

The major stakeholders in the global smoke grenade market ecosystem include raw material and component suppliers, smoke grenade manufacturers, and end users. The raw material supplier is one of the crucial stakeholders in the ecosystem of the smoke grenade market. The smoke grenades require different types of chemicals to provide the necessary illumination and create smoke. Some of the key raw materials primarily used in the production of smoke grenades includes sulfur, potassium chlorate, sodium bicarbonate, and the mixtures of pure & refined kerosene along with tricalcium phosphate for controlling dusting/caking. The major raw material suppliers include Du PONT, HAZZARD, LAFLINSMITH & BOIES, Pyrotechnics Specialties Inc, The Oriental Gunpowder Company, Nouryon, and Wego Chemical Group. These raw material suppliers provide raw materials to the smoke grenade manufacturers.

The key smoke grenade manufacturers include HFI Pyrotechnics, Rheinmetall AG, Arsenal JSCo, Chemring Group Plc, and 3rd Lights Ltd. There is a growing demand for pyrotechnic products from the armed forces for rescue operations, search operations, and critical missions. In addition, the rise in initiatives for conducting training programs across the different countries is also propelling the demand for smoke grenades. The growing demand for smoke grenades is fulfilled by increasing their production from the manufacturing end, which is further aiding the market growth.

The major end users in the smoke grenade market include law enforcement agencies, military forces, and commercial end users. A large number of law enforcement agencies procure the smoke grenade products from the manufacturers on contract basis which may be either a contract basis, which may be either a long-term or short-term contract. Thus, growing the increase in initiatives for training programs, wherein the smoke grenade products are used among by various end users, is fueling the market growth.