Top 10 Ammunition Industry Key Leaders In 2024: Demand, Price, Revenue Statistics and Market Facts
RELEASE DATE: Aug 2024 Author: Spherical Insights Request Free Sample
Overview
Any item that is shot, dispersed, dropped, or exploded by a weapon or weapon system is known as ammunition. The Global Ammunition Market Size was valued at USD 27.83 billion in 2023 and is anticipated to reach USD 38.16 billion by 2033, growing at a CAGR of 3.21% during 2023-2033. Ammunition consists of components that comprise different weapons that have an impact on a target as well as expendable weapons consisting of bombs, missiles, grenades, and land mines.
Advancements in Ammunition Industry
The global market comprises some of the leading companies in the ammunition industry, such as General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems, Thales, and Nammo AS. These businesses have furthered their presence in the ammunition market by implementing a variety of growth tactics, including agreements, partnerships, collaborations, and contracts. For instance, in December 2023, the Ukrainian armed forces have placed a purchase order with Rheinmetall for several tens of thousands of different types of shells. The order is valued at a million euros, three digits. The delivery is expected to take place in 2025.
Government Initiatives and Regional Market Expansion
- Nammo has signed a deal to greatly expand the manufacture of rockets and artillery ammunition with the Norwegian Defence Materiel Agency. Ammunition and firearms are desperately needed in Ukraine. A variety of initiatives have been put in place by the government to increase output in the Norwegian defense sector. Nammo will be able to increase production of highly sought-after military equipment due to this deal. This is crucial for the security of the Allies, Ukraine, and their own country's readiness.
- The indigenous ammunition sector has improved its capacity to meet demand and potentially win a portion of the world market, therefore the Indian Army wants to stop importing ammunition altogether starting in the next fiscal year. Of the 175 types of ammunition used by the army, roughly 150 have native suppliers. By 2025–2026, the army wants to stop importing all ammunition. After imports are gradually reduced, only 5–10% of demand is satisfied by foreign sources.
Insights and Projections: Global Ammunition Market Analysis
The report provides a summary of the global top trends and future prospects for the global ammunition market based on historical data sets (current trends, industry statistics, and emerging trends shaping the ammunition industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global ammunition trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions.
Growth Factors and Emerging Trends in the Ammunition Industry
1. Significant expenditures made by the government to strengthen its military and armed forces
The U.S. government's large expenditures for armed forces and military modernization are anticipated to boost the nation's industrial expansion. The Department of Homeland Security (DHS) and civilian procurement of small-caliber ammunition is anticipated to support the industry's overall expansion. Improving sales channels, like internet sales in the nation, is probably going to support total growth. Additionally, throughout the projection period, there is anticipated to be a rise in the popularity of rifle- and pistol-based sports and shooting, which will lead to a greater use of small-caliber ammunition. Due to technological developments, the business as a whole is supported by the introduction of lightweight bullets made of polymer-based casings.
2. Overseas problems, international disputes, and disagreements over politics in different nations encourage growth
The military would be strengthened as a result of the rising frequency of geopolitical tensions, political upheaval, and cross-border wars, particularly in the Middle East and Asian nations. The global market would grow as a result of the military's expansion and the increased purchase of small, medium, and large-caliber ammunition. The military employs large-caliber ammunition primarily for close-quarters fighting in nations like South Korea, Japan, and Russia. In addition, producers are investing more in research and development to create ammunition with improved technology, which is driving the market's expansion. The ammunition industry is seeing faster revenue growth due to developments in technology and increased spending on research & development. There is a growing market for small and medium-caliber firearms in the sector due to political unrest and local disputes in different countries.
Opportunities and Future Prospects in the Ammunition Industry
- Continuous risk of terrorist attacks
The ongoing threat of terrorism is another factor fueling the ammunition market's growth. To combat this threat, law enforcement agencies are undergoing a modernization and training phase. As a result, more ammunition is required to support these endeavors. Law enforcement uses ammunition for many purposes, including training exercises to hone people and practice tactical movements, executing specialized operations that need a certain type of ammunition, and stockpiling ammo in case of terrorist strikes. Law enforcement's emphasis on preparedness and preparation for worst-case scenarios is driving overall market growth, which raises demand for ammunition for training and stockpiling. The public's growing concerns about national security and terrorism could have a snowball effect that fuels the growth of the ammunition market. When citizens experience heightened security concerns and feelings of insecurity, they may prioritize taking personal protective measures. This could lead to a rise in civilian demand for firearms and ammunition for self-defense.
List of Key Companies in the Ammunition Industry
- Nammo AS
- General Dynamics Corporation
- Northrop Grumman Corporation
- Rheinmetall AG
- BAE Systems PLC
- Sierra Bullets
- Nosler Inc.
- Hornady Manufacturing, Inc.
- CBC Global Ammunition
- RUAG Ammotec
Top 5 Players in the Ammunition Industry
1. Nordic Ammunition Company
Headquarters: Raufoss, Norway
Nordic Ammunition Company, or Nammo for essence, is a Norwegian-Finnish defense and aerospace company with a focus on applications in space, engines for rockets, and ammunition manufacturing. The Finnish defense corporation Patria and the Norwegian government, portrayed by the Ministry of Trade, Industry, and Fisheries, share equal stakes in the company. The corporate office is located in Raufoss, Norway. Based in Raufoss, Norway, Nammo is a global aerospace and defense enterprise. As one of the world's top suppliers of rocket motors, ammunition, and disarmament solutions to both military and civilian users, we employ over 2800 people at over 28 facilities and offices in 11 different countries.
2. General Dynamics Corp
Headquarters: Virginia, United States
A multinational defense contractor is General Dynamics Corp. (General Dynamics). The company manufactures battle tanks, weapons, propellants, business jets, and wheeled assault vehicles. The headquarters of the publicly traded American aerospace and defense company General Dynamics Corporation (GD) are located in Reston, Virginia. By sales of weapons, it ranked as the fifth-biggest defense contractor globally as of 2020, while by total sales in the US, it ranked fifth.[2] The business, which is listed on the Fortune 100, was placed No. 94 in 2022. The Combat Systems section provides ammunition, weaponry, and combat vehicles to the US government and its allies across the globe. A vast spectrum of military, federal civilian, state, and municipal customers are served by the technologies, goods, and services provided by the information technology segment, which supports thousands of programs.
3. Northrop Grumman Corporation.
Headquarters: Virginia, United States
An American global aerospace and defense corporation is called Northrop Grumman Corporation. Intelligence, monitoring, and reconnaissance (C4ISR), technology, robotics, unmanned systems, the field of cybersecurity, command, control, and communications all of these areas are served by Northrop Grumman Corp. (Northrop Grumman). It offers upgrading and logistical services as well. The aerospace, defense, electronics, and information systems industries all use Northrop Grumman's solutions. The business provides services to commercial clients in North America, Europe, and Asia-Pacific as well as international, state, and local governments. The US location of Northrop Grumman's headquarters is in Falls Church, Virginia. Aeronautics, defense, and space equipment are all offered by Northrop Grumman, a multifaceted defense contractor. The company's aerospace division builds manned and autonomous aircraft, including the new B-21 bomber and the Global Hawk drones, as well as the fuselage for the enormous F-35 program.
4. Sierra Bullets
Headquarters: Missouri, United States
American company Sierra Bullets was established in 1947 and is a producer of gun ammunition. Sierra is a Missouri-based company that has been in business since 1990. It produces a large variety of bullets for handguns and rifles. Sierra bullets are used for hunting, protection, and precise target shooting.
Defense, aerospace, and security solutions for land, air, and sea are offered by the corporation. Manufacturer of guns for use by law enforcement, the military, and enthusiasts who enjoy hunting and pleasure shooting. The company sells a large selection of bullets for handguns, rifles, and handguns in addition to bullet jackets for hunting, competitive shooting, precise target shooting, and self-defense.
5. Nosler, Inc.
Headquarters: Oregon, United States
American manufacturer Nosler, Inc., with headquarters in Bend, Oregon, is well-known for handloading components and creating ammunition, with a focus on high-performance hollow-point and soft-point hunting bullets. The most well-known contribution of Nosler® is the revolutionary big game hunting ammunition, such as Partition® and Ballistic Tip®. Nosler®, a company that operates under the motto "Quality First," produces semi-custom rifles, brass, ammunition, and premium component bullets for both local and foreign clients. Numerous businesses that produce ammunition and handload components under the Nosler brand, with a focus on high performance hollow point and soft point hunting bullets, are participating in the industry. Nosler, Inc., Nosler Custom, and Nosler Reloading are the current companies. Nosler is credited for creating novel bullet designs as well as new manufacturing processes for producing them.
Recent Development
- In August 2024, With the $950 million acquisition of US-based vehicle specialist Loc Performance, German armaments manufacturer Rheinmetall has strengthened its position in the largest defense market globally. Renowned for its work on mining, construction, agricultural, and military vehicles, Loc Performance will incorporate its knowledge into Rheinmetall's worldwide supply networks.
- In July 2024, the Norwegian Defense Materiel Agency declared that it had inked a contract with the aerospace and defense business Nammo for over NOK 1 billion ($94 million), intending to greatly increase the production of artillery ammunition.
- In June 2024, Northrop Grumman Corporation and Chemring Nobel AS, a Norwegian-based specialized chemical enterprise, reportedly signed a long-term sourcing arrangement for high-energy, flammable powder known as "HMX" to enable warhead production.
- In October 2023, the newly designed 57mm guided high explosive ammunition manufactured by Northrop Grumman Corporation (NYSE: NOC) will be developed under a contract issued by the U.S. Navy.
- In August 2023, Ball Aerospace acquired by BAE Systems plc ("BAE Systems" or the "Company") from Ball Corporation for approximately $5.55 billion in cash, subject to usual closing adjustments, according to a formal stock purchase agreement.
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