Global Ammunition Market Insights Forecasts to 2033

• The Global Ammunition Market Size was Valued at USD 27.83 Billion in 2023
• The Market Size is Growing at a CAGR of 3.21% from 2023 to 2033
• The Worldwide Ammunition Market Size is Expected to Reach USD 38.16 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Ammunition Market Size is Anticipated to Exceed USD 38.16 Billion by 2033, Growing at a CAGR of 3.21% from 2023 to 2033.  

Market Overview

Equipment used in warfare or military action, such as missiles, anti-personnel mines, land mines, bombs, warheads, and naval mines, is referred to as ammunition. However, ammunition intended for consumer and commercial usage includes weapon rounds for hunting, defense, and sporting activities. revolvers, shotgun pistols, and assault rifles all used small-calibre ammo. The ammunition business is dynamic by nature, and factors that determine market attractiveness include defense budgets, the size of the armed forces, the inventory of guns, artillery, and tanks, stockpiling or war reserves, and geopolitical tensions, among others. The ammunition market is expanding due to several factors, including the evolving nature of conflict, the militarization of law enforcement, the rise in drug trafficking and terrorist attacks, and the modernization of military forces. Apart from its use in defense forces, ammunition also sees increasing importance in civil and commercial applications such as sporting, hunting, and self-defense. The demand for artillery and large-calibre ammunition to support sea and air defense systems will likely be significantly impacted by significant spending to support naval and ground defense forces around the world. In 2022, the UK government announced that it had increased its naval budget to nearly USD 45.9 billion, a significant increase over the previous budget. The funding is reportedly intended to improve the navy's lethality, fleet availability, and development of a more high-tech force.

Report Coverage

This research report categorizes the market for the ammunition market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the ammunition market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the ammunition market.

Driving Factors

Increased military spending and the procurement of small, medium, and large-calibre ammunition would fuel the global market's growth. Large-caliber ammunition is primarily used by defense forces for combat operations in several countries, including South Korea, Japan, and Russia. Manufacturers are also increasing their spending on research and development (R&D) to produce technically advanced ammunition. These factors, along with the growing frequency of geopolitical tensions, political unrest, and cross-border conflicts, particularly in the Middle East and Asian countries, would lead to the strengthening of military forces.

Restraining Factors

Stringent government laws and restrictions on gun use are a major impediment to the global market's growth. Following the New Zealand shooting incident in Christchurch, the government changed the country's gun restrictions. It established stringent gun control laws, including the requirement that only license holders submit to background checks before purchasing a firearm.

Market Segmentation

The ammunition market share is classified into product, caliber, and application.

• The bullets segment is expected to hold the largest share of the ammunition market during the forecast period.   

Based on the product, the ammunition market is categorized into bullets, aerial bombs, grenades, mortars, artillery shells, and others. Among these, the bullets segment is expected to hold the largest share of the ammunition market during the forecast period. The creation of cutting-edge products, growing political unrest, and rising defense spending are all blamed for the growth. Due to growing defense force contracts, growing security concerns, and the bolstering of military forces, the aerial bomb and grenade segments will experience substantial expansion in this market.

• The small segment is expected to grow at the fastest CAGR during the forecast period.   

Based on the caliber, the ammunition market is categorized into small, medium, and large. Among these, the small segment is expected to grow at the fastest CAGR during the forecast period. Due to small calibre ammunition's decreased lethality, military personnel and homeland security professionals are increasingly interested in this market segment. This segment's growth is also being driven by open online markets for small arms and ammunition, as well as increased purchases of small-calibre ammunition by the defense and homeland security sectors to halt the rising number of violent conflicts.

• The military & homeland security segment is expected to hold a significant share of the ammunition market during the forecast period.

Based on the application, the ammunition market is categorized into military & homeland security, and civil & commercial. Among these, the military & homeland security segment is expected to hold a significant share of the ammunition market during the forecast period. This increase can be attributed to the military's increased need for ammunition as a result of international conflicts, instability in politics, and military modernization programs in numerous nations.

Regional Segment Analysis of the Global Ammunition Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is projected to hold the largest share of the ammunition market over the forecast period.

North America is projected to hold the largest share of the ammunition market over the forecast period. A greater demand for ammunition has been caused by several nations' focused ammunition upgrading programmers, including China and India. The US's increased ammunition purchases as a result of the country's defense forces' increasing deployment abroad can be blamed for the market's expansion in this area. Since the US is the world's leading producer, distributor, and exporter of ammunition, North America ranks among the world's top users of this weaponry.

Asia Pacific is expected to grow at the fastest CAGR growth of the ammunition market during the forecast period. Growing defense budgets in nations like China, India, and Japan are significant industry drivers. Countries also want to strengthen their military power by using innovative initiatives to resolve cross-border and civil unrest. For example, the United States is the fourth member of the Quad Group, which also includes Australia, Japan, and India. These nations are working together to enhance their strategic advantages and advance their technological capabilities.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the ammunition market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• BAE Systems
• CCI
• Global Ordnance
• Elbit Systems Ltd.
• NAMMO AS
• Magtech
• Denel
• Northrop Grumman Corporation
• Nexter Group
• Ruag Ammotech
• Others

Key Market Developments

• In January 2024, The Norwegian government gave Nammo AS USD 95 million to increase output. Nammo intends to primarily utilize the funding for its 155mm artillery ammunition.

• In December 2023, The Ukrainian armed forces have placed an order with Rheinmetall for several tens of thousands of different types of shells. The delivery date is set for 2025. The contract has a 1.3 billion USD worth.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global ammunition market based on the below-mentioned segments: 

Global Ammunition Market, By Product

• Bullets
• Aerial Bombs
• Grenades
• Mortars
• Artillery Shells
• Others

Global Ammunition Market, By Caliber

• Small
• Medium
• Large

Global Ammunition Market, By Application

• Military & Homeland Security
• Civil & Commercial

Global Ammunition Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa