The small caliber ammunition marketis expected to grow from US$ 5,923.61 in 2020 to US$ 10,241.57 million by 2028; it is estimated to grow at a CAGR of 7.5% from 2021 to 2028.

Ammunition plays a decisive role in escalating, prolonging, or intensifying armed conflict. It is consumable and continuously replenished. Small caliber ammunition, usually less than 20 mm, includes cartridges and bullets fired from a weapon, and they consist of gun powder and primers for explosion. The ammunition is used primarily with small arms as well as with some light weapons. Surging terrorist activities across the world as well as increasing internal and international conflicts are compelling government agencies and military authorities, and police departments to procure this type of ammunition. Furthermore, military modernization initiatives being implemented in major defense countries are gathering greater focus on spending significant amounts on the procurement of ammunition, which is supporting the growth of the small caliber ammunition market.

Based on ammunition size, the small caliber ammunition market is segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 12.77mm, 14.5mm, 45ACP,.338LM,.22LR,.223 Remington, and.308 Winchester. The 7.62 mm segment is expected to register the highest CAGR during the forecast period owing to a larger ranges of cartridges offered with this caliber. The 7.62mm caliber is used in long-range small weapons such as medium machine guns, handguns, and shorter-range sniper rifles. 7.62x51mm and 7.62x39mm are the two configurations of 7.62mm ammunition. The 7.62x51mm is majorly the US configuration, whereas the 7.62x39mm is the Russian configuration. Both configurations have immense demand from the defense and homeland security forces. Based on end user, the small caliber ammunition market is segmented into military, homeland security, and law enforcement agencies. By gun type, the market is segmented into pistols, rifles, and shot guns. In terms of geography, in 2020, North America dominated the small caliber ammunition market owing to the increasing use of ammunition by armed forces and growing number of drug cartels in Central America. Moreover, the North America small caliber ammunition market is driven by the strong demand from the US. The long-term competitive strategy of the US Department of Defense for developing technologies and new concepts of warfare is expected to aid the regional market growth during the forecast period.

The COVID-19 outbreak has significantly affected the world and is continuing to shatter several countries. Until the outbreak, the defense industry was experiencing substantial growth in terms of production and services. Due to the pandemic, ammunition and assembly line manufacturing across the world have been negatively impacted. Despite the importance of ammunition manufacturing for military applications, the production of ammunition is disrupted owing to the restrictions on supply chain. The level of COVID-19 exposure a country faces, the level at which manufacturing operations are running, and import-export regulations, among other things, all factors are playing an important role in resuming ammunition manufacturing and demand. Several countries have decided to cut their defense budgets in general. Budgets for the research and noncritical sectors are likely to be temporarily cut as defense departments focus more on critical sectors to national security.

The small caliber 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 market. The process also serves the purpose of obtaining an overview and forecast for the small caliber ammunition market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the small caliber ammunition market. General Dynamics Ordnance and Tactical Systems, Thales Group, Northrop Grumman Corporation, BAE Systems, and Vista Outdoorare among the key players operating in the market.