According to a recently published Fact.MR report, the global ammunition market is expected to grow at a CAGR of more than 5.7% by 2032, reaching an impressive valuation of US$ 35 Bn. Defense spending has been identified as the primary growth driver.
From 2015 to 2021, global sales increased at a CAGR of 5.9%, reaching US$ 19.2 Billion by the end of the period. Prospects took a back seat during COVID-19 due to border closures and reorientation of business priorities, but there has been an upswing since the latter half of 2020, with restrictions easing.
The global ammunition market is expected to grow 1.5x between 2022 and 2032, owing to increased participation in sports shooting. Ammunition manufacturers are investing in product development, such as lightweight bullets with polymer casings, which are gaining popularity among government agencies and consumers. Furthermore, rising political tensions will increase demand for developing economies to upgrade their defense capabilities in order to combat geopolitical insurgencies.
Key Takeaways from the Market Study
- Centerfire ammunition will be the most in demand, accounting for 66% of global revenue.
- Rockets and missiles will continue to be a key caliber category, growing at a CAGR of 3%.
- Defense ammunition will be the primary application area, accounting for 50% of revenue.
- The United States will be the most opportunistic market, accounting for more than one-third of total ammunition demand. East and South Asia will grow at CAGRs exceeding 3.1% and 3.5%, respectively, until 2032.
- Germany will drive demand in Europe, growing at a CAGR of 3% until 2032.
“Rising uncertainties in the international political arena, combined with increasing geopolitical and security threats, are prompting countries to increase defense spending, resulting in increased demand for ammunition on a broader scale,” says the Fact.MR analyst.
Companies use collaborative strategic initiatives to increase their market share and profitability. They are also acquiring start-ups that are developing technologies in order to strengthen their product capabilities. Among the leading players in the ammunition market are General Dynamics Corporation, BAE Systems PLC, Rheinmetall AG, Elbit Systems Ltd, and Nexter Group. These players are focusing on a variety of strategies to broaden their product offerings and strengthen their geographic presence. New players are expected to enter the market as technology advances.
- For example, in July 2021, BAE Systems and the Ministry of Defence (MOD) signed a contract worth approximately £250 million to advance the design and development of Tempest, the UK’s Future Combat Air System (FCAS).
More Insights Available
Fact.MR, in its new report, offers an unbiased analysis of the global ammunition market, analyzing historical demand from 2015-2021 and forecast statistics for 2022–2032.
The study reveals growth projections on the ammunition market on the basis of caliber (small caliber ammunition, medium caliber ammunition and large caliber ammunition, rockets, missiles and others), type (rimfire ammunition and centerfire ammunition) and application (civil & commercial and self-defense) across seven regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa).
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