Ammunition Market

Market Snapshot

According to Fact.MR, the global ammunition market is slated to touch an impressive valuation of nearly US$ 35 Bn, registering over 5% CAGR during the assessment period. Increased defense expenditure to counter external aggression is majorly driving demand.

The development of lightweight bullets using polymer casings is another driving factor for ammunition manufacturers. Demand for centerfire ammunitions is bound to surge, capturing over 2/3rd revenue as of 2020, being the gold standard for the defense industry.

Key Points Addressed in Ammunition Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Ammunition and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Ammunition from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider- over the last 5 years, the global market for ammunition expanded at 4% CAGR to surpass US$ 20 Bn in 2020.

The lightweight nature of the trending bullets allows for more ammunition to be carried by soldiers, which in turn increases the demand for ammunition. Disruptive trends such as online sales channels are expected to bolster growth for small caliber ammunition during the forecast period.

The increasing popularity of sports shooting activities among consumers is central to the mass adoption of small caliber and lightweight ammunition via online sales channels. On the back of these factors, the global ammunition market is expected to grow 1.5x between 2021 and 2031, registering 5% CAGR.

How is Recreational Shooting Spurring Ammunitions Demand?

Small caliber ammunition presents lucrative growth opportunities for ammunition manufacturers, with shooting sports becoming increasingly prevalent. Moreover, purchase of ammunition to safeguard residential properties is driving the adoption of a small-caliber segment during the forecast period. 

For instance, America’s millions of first-time firearm owners will find National Shooting Sports Month® in August 2021, a great time to enjoy using their new firearms, whether in a training course, competition or simply having fun shooting targets with friends.

According to the National Shooting Sports Foundation, it is estimated that 8.4 million people purchased their first firearm last year, with many of them being non-traditional buyers.

How are Online Sales of Ammunition Influencing Global Sales?

Online sales channels are gaining traction from millennial consumers that shop online for everything. Manufacturers are invested in developing innovative products to aid consumer traction.

Plastic guns, lightweight polymer casings, and re-usable casings are a few instances where manufacturers can leverage innovation to attract, engage, and delight commercial consumers. These products are also exclusively marketed online.

What Opportunities do Hunting Events Provide to Ammunitions Sales Growth?

In April 2021, Remington Ammunition, a leading player in the market for ammunition, announced a partnership to support the Mule Deer Foundation (MDF) in outreach initiatives to strengthen the nation’s hunting and conservation heritage, increase the number of hunters and drive greater awareness to the shooting sports, hunting, and outdoor lifestyle.

The National Shooting Sports Foundation (NSSF) reported that the firearm industry trade association marked a milestone achievement when firearm and ammunition manufacturers topped US$ 14.1 Bn in contributions to the Wildlife Restoration Trust Fund since its inception in 1937.

Country-Wise Analysis

What is the Demand Outlook for Ammunition in the U.S?

The U.S. government has been making high investments for enhancements in military and armed forces which is further supporting the market growth in the country.  Over 1/3rd of overall ammunitions demand will be generated in the U.S.

In May 2021, the Department of Defense released the FY 2022 President’s Budget which proposed US$ 715 Bn in defense spending compared to FY 2021, reflecting an increase of 1.6%.

Civilians and the native security departments are procuring small-caliber ammunition. In addition to this, the key players are working on improving their online presence, which is likely to supplement the growth.

What are the Growth Opportunities across Germany?

Germany reported a record high in North Atlantic Treaty Organization (NATO) defense spending for 2021, submitting a budget of €53 billion ($63.8 billion) for the current year. This figure also marks a 3.2% increase as in 2020 the spending stood at nearly €51.4 billion.

In June 2021, BAE Systems, Inc. received the first contract from the Space and Missile Systems Center’s Space Production Corps to deliver M-Code Military Global Positioning System user equipment to Germany.

Under the Foreign Military Sales contract, BAE Systems will deliver advanced M-Code GPS technology to Germany, enabling precise, resilient, and secure geolocation and positioning capabilities that improve the effectiveness of allied operations. Such developments will spur demand at a CAGR of over 4% through 2031.

How is Asia Creating Opportunities for Increased Ammunitions Demand?

Asia is projected to be the largest revenue contributor to the global market for ammunition through 2031. According to Fact.MR, East Asia and South Asia offer lucrative growth opportunities, with CAGRs surpassing 4% and 5% respectively. Rising defense expenditure is the key growth driver.

In June 2020, South Korea’s Defense Acquisition Program Administration (DAPA) announced that it has chosen local firearms manufacturer, Dasan Machineries, as the preferred bidder in a US$ 3.1 Mn program to replace the S&T Motiv K1A 5.56 mm carbine currently used by the Republic of Korea Army’s (RoKA’s) Special Warfare Command.

Category-Wise Analysis

Why are Rockets and Missiles Generating Significant Demand?

Countries are investing in long-range missile and rockets in the face of growing uncertainty in the global arena. Fact.MR expects their demand to bolster at over 5% CAGR in the forthcoming decade.

In August 2021, in a big boost to the Indian Navy, the U.S approved the sale of Harpoon over-the-horizon anti-ship missile test kits to India to counter China in the Indian Ocean Region. Such initiatives are boosting demand to a large extent.

How is Centerfire Ammunition Aiding Market Growth?

Centerfire ammunition leads the ammunition market, emerging as the gold standard owing to its ability to endure high-pressure shooting, recyclable casings, and safety features. The segment generated over 66% revenue in 2020.

In October 2020, the U.S army announced that the army’s SAW and M4 replacement is all set to enter in 2022. The new caliber gives the soldier both a rifle and automatic rifle firing the same round, both effective past the 600m mark of existing light calibers.

Competitive Landscape

The ammunition market is fragmented due to the presence of various players supporting the armed forces. These players focus on adopting various strategies to expand product offerings and strengthen geographic presence. With advancements in technology, new players are expected to enter the market.

• In July 2021, a contract was signed by BAE Systems and the U.K Ministry of Defence (MOD) worth £250 Mn to progress the design and development of Tempest, the U.K’s Future Combat Air System (FCAS).
• In December 2020, Nammo and the Finnish Defense Forces (FDF) announced the signing of a new long-term strategic partnership agreement in continuation of the previous security of supply agreement between the two parties signed in 2014.
• The companies are investing in the development and manufacturing of advanced precision-guided ammunition that can effectively attack the target with limited collateral damage.

Report Scope

Key Segments Covered

• Caliber

  • Small Caliber Ammunition
    • 5.56 mm
    • 7.62 mm
    • 7.62 x 51 mm
    • 7.62 x 39 mm
    • Others
    • 9 mm
    • 9 x 18 mm
    • 9 x 19 mm
    • Others
  • Medium Caliber Ammunition
    • 23 mm
    • 30 mm
    • Others
  • Large Caliber Ammunition
    • VSHORAD
    • 122 mm
    • Others
  • Rockets, Missiles and Others
    • Tank Ammunition
    • Artillery Ammunition

• Type

  • Rimfire Ammunition
  • Centerfire Ammunition

• Application

  • Civil & Commercial
    • Sports Ammunition
    • Hunting Ammunition
  • Self Defense
    • Defense Ammunition
    • Military Ammunition
    • Law Enforcement Ammunition

Ammunition Market- Scope of Report

A recent study by Fact.MR on the ammunition market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. The report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering ammunition.

The study also provides the dynamics responsible for influencing the future status of the ammunition market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies operating in the ammunition market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of ammunition across the globe.

A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of ammunition during the forecast period. Price point comparison by region with global average price is also considered in the study.

Key Questions Answered in Report

• Which are the most lucrative ammunition markets?
• Which factors will impact the growth of ammunition market?
• How will changing trends impact the strategies of market players?
• How can market players capture the low-hanging opportunities across regions?
• Which companies are leading the ammunition industry?
• What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of volume (‘000 Units) and value (US$ Mn). Estimates at global and regional levels for ammunition are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report.

Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global ammunition market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the ammunition during the forecast period.

Country-specific valuation on demand for ammunition has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading manufacturers of ammunition, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering ammunition has been brought with the help of a detailed dashboard view.

Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses. Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the ammunition domain.

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the ammunition industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.