According to the new research report published by The Insight Partners on "Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis," the market is expected to grow at a CAGR of 8.4% from 2022 to 2028 to reach US$ 69.75 billion by 2028.
To gain a more comprehensive understanding of the ammunition market, an analysis of major players was conducted, including 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, other notable contributors to the global market include 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. These companies use a variety of organic and inorganic growth strategies to expand their product portfolio and global presence in the ammunition market.
The key stakeholders in the ammunition market ecosystem are raw material/component suppliers, ammunition manufacturers, and end-users. The crucial raw materials used in the production of ammunition include chemical energy substances such as nitrocellulose and black gunpowder components, metals, shells, and other equipment. The timely and efficient supply of these components is essential for the smooth functioning of ammunition manufacturing plants, and any operational impact on these component providers can directly affect the size of the ammunition market. For instance, in 2020, raw material suppliers faced several challenges, including a shortage of raw materials, powder, shells, metals, etc., which ultimately hindered ammunition manufacturing.
The ammunition market comprises numerous small players who collectively hold a significant share of the market. Many of these players are also involved in R&D activities aimed at developing new technologies to meet the growing needs of customers. These organizations have increased their investments in the development of advanced and innovative ammunition over the years, with the support of regulatory bodies.
The ammunition market size is segmented on the basis of product, application, guidance, lethality, and caliber. Based on product, the ammunition market is segmented into bullets, aerial bombs, grenades, artillery shells, mortars, and others. Based on application, the market is bifurcated into defense and commercial. Based on application, the ammunition market is bifurcated into defense and commercial. Based on guidance, the market is bifurcated into guided and non-guided. Based on lethality, the ammunition market is bifurcated into non-lethal and lethal. Based on caliber, the ammunition market is segregated into small caliber ammunition, medium caliber ammunition, and large caliber ammunition. The market for small-caliber ammunition is further segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, 338LM, 22LR, .223 Rem, and .308 winchester. The medium-caliber ammunition market is further segmented into 20mm, 30mm, 40mm, and others. The market for the large-caliber ammunition is further segmented into 60mm, 105mm, 120mm, 150mm, and others.
Key Findings of Study:
Ammunition finds its major application in defense, homeland security, and law enforcement agencies, while licensed hunters and shooting sports organizations are the commercial end users. In addition, ammunition is utilized to provide cost-effective broadband communication services to high-speed aircraft. The ammunition market is fueled by the ongoing conflicts between various nations such as India-Pakistan, India-China, China-Taiwan, and the Russia-Ukraine war, among others. Several European countries such as Germany and the UK have already declared their intention to increase their defense budgets substantially, which is likely to boost ammunition procurement and drive market growth during the forecast period.
The increasing adoption of precision-guided ammunition is a key driver of growth in the global ammunition market, with guided mortars and grenade launchers expected to create significant opportunities for vendors during the forecast period. Additionally, the growing military expenditure of several countries, which are investing heavily in firearms and ammunition to enhance their armed forces, is fueling the market growth.
The COVID-19 pandemic has resulted in a surge in demand for ammunition and firearms from both commercial and defense sectors. However, the pandemic and related measures adopted by various countries led to a scarcity of raw materials like casings, primers, and powder. Although the defense supplies were not affected, as these are contract-based transactions, the commercial segment faced a significant scarcity of ammunition. Moreover, the unprecedented demand for ammunition during the pandemic has caused shortages across countries such as the US and China.
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