AMMUNITION MARKET ANALYSIS

Ammunition MarketSize and Trends

The global ammunition market is estimated to be valued at US$ 10,407.57 million in 2021 and is expected to exhibit a CAGR of 1.31% over the forecast period (2021-2028).

Figure 1. Global Ammunition Market Value (US$ Mn), by Region, 2020

Figure 2. Global Ammunition Market Share, By Application, 2020

Key Takeaways of the Graph:

• The defense segment held dominant position in the market and accounted for 51.4% share in the global Ammunition market in 2020. The segment is expected to reach US$ 5909.8 million in 2028. This is owing to increasing defense budget of many counties across the globe.
• The small arm ammunition segment accounted for the largest share of 41.2% in the global ammunition market and is expected to reach US$ 4729.5 million by 2028, owing to growing preference for small armored weapons.

Market Trends

Development of lightweight ammunition

Measures such as the development of lightweight ammunition are taking place in order to reduce soldier load. The U.S Department of Defense is making efforts to reduce ammunition weight carried by soldiers on the battlefield. One of the initiatives taken by them is the Lightweight Small Arms Technologies program through which they aim to provide lightweight ammunition and weapons to the forces. Infantry soldiers are required to carry heavy arms and ammunition for a longer duration on the battlefield which affects their fighting capabilities. This program intends to provide soldiers with light-weight ammunition, which includes light-weight machine guns. For instance, the new advanced light machine gun designed by AAI Corporation makes use of 5.56 mm ammo.

Precision munition finding growing usage

Warfare techniques have undergone noteworthy changes during the past decade, owing to a rise in counter-terrorism, guerilla warfare, and counter-insurgency operations in several countries. Hence, with the rising occurrences of asymmetric conflicts by terrorists, rebel forces, and insurgents, the armed forces are finding newer ways to counterbalance the enemy with newer ammunition. Precision munitions are weapons used by militaries in places where greater accuracy is required. For instance, Guided Multiple Launched Rocket System, XM395 precision mortar and Excalibur are examples of precision munitions.