Ammunition Sales to reach US$ 35 Bn by 2031, backed by Government Initiatives to Strengthen Defense Systems: Fact.MR Study
Published : 05 Aug 2021 Industry: Industrial Goods
The global ammunition market is projected to grow at a healthy CAGR of over 5% by 2031, touching an impressive valuation of US$ 35 Bn, according to a recently published report by Fact.MR. Heightened defense expenditure is attributed as the key expansion driver.
From 2016 to 2020, global sales expanded at a CAGR of 4%, clocking US$ 20 Bn by the end of the said historical period. While prospects took a backseat amid COVID-19 amid border closures and reorientation of business priorities, an upswing is being witnessed since the latter half of 2020, with restrictions easing.
On the back of increased participation in sports shooting, the global ammunition market is expected to grow 1.5x between 2021 and 2031. Ammunition manufacturers are investing in product development such as lightweight bullets using polymer casings which are driving mass adoption among government agencies and consumers alike. Additionally, rising political tensions will garner increased traction from developing economies looking to upgrade their defense capabilities to combat geopolitical insurgencies.
Key Takeaways from the Market Study
- Centerfire ammunition to account for the highest demand, yielding 66% of global revenue
- Rockets and missiles segment to remain key caliber category, expanding at a CAGR of 5%
- Defense ammunition to emerge as primary application area, accounting for 50% revenue
- U.S to be most opportunistic market, accounting for over 1/3rd of overall ammunition demand
- East & South Asia to expand at CAGRs exceeding 4% and 5% respectively until 2031
- Germany to propel the demand in Europe, flourishing at a CAGR of 4% until 2031
“Rising uncertainties in the international political arena amid increasing geopolitical and security threats is prompting countries to augment defense spending, generating demand for ammunition on a broader scale,” says the Fact.MR analyst.
Companies leverage strategic collaborative initiatives to increase their market share and profitability. They are also acquiring start-ups working on technologies to strengthen their product capabilities. Prominent players in the ammunition market include General Dynamics Corporation, BAE Systems PLC, Rheinmetall AG, Elbit Systems Ltd, and Nexter Group among others.
These players focus on adopting various strategies to expand product offerings and strengthen geographic presence. With the advancement in technology, new players are expected to enter the market.
For instance, in July 2021, a contract was signed by BAE Systems and the Ministry of Defence (MOD) worth approximately £250m to progress the design and development of Tempest, the UK’s Future Combat Air System (FCAS).
More Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the ammunition market, presenting historical demand data (2016-2020) and forecast statistics for the period of 2021-2031.
The study divulges essential insights on the ammunition market on the basis of caliber (small caliber, medium caliber, large caliber, and rockets, missiles & others), type (rimfire and centerfire), application (civil & commercial and self-defense), and across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa).
About the Industrial Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned Industrial team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the automotive industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
For more information, refer to our market research report or contact the PR author.
Consultant - Industrial Goods and Automotive