Ammunition Market, By Type (Large caliber ammunitions, Medium caliber ammunitions, Small caliber ammunitions, Artillery ammunitions, Mortar ammunitions, Naval ammunitions, and Aircraft ammunitions)By Product (Small arm ammunition, Rockets, Torpedoes, Missiles and warheads, Bombs (grenade and rocket bombs), and Miscellaneous (mines and other explosives)), By Application (Defense, Homeland Security, and Others (Personal, R&D, entertainment, and fire services)), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Oct 2024

Code : CMI4679

Pages :150

Formats :

Excel and PDF

Industry : Aerospace and Defense

Ammunition Market Size and Trends

The global ammunition market is estimated to be valued at US$ 31,104.9 Mn in 2024 and is expected to reach US$ 38,220.9 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 3% from 2024 to 2031.

Ammunition Market Key Factors

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The global ammunition market has witnessed a rise over the past decade due to increasing defense expenditures of countries and growing internal security threats. Law enforcement agencies and national militaries across both developed and developing nations have boosted their ammunition stocking to deal with issues like terrorism, border conflicts, and political instability. Additionally, the popularity of recreational shooting and hunting has expanded the consumer segment of this industry. Innovations in ammunition design have allowed manufacturers to develop more effective and high-performance bullets. However, strict regulations on ammunition trade and sales to civilian users in some parts of the world may moderately challenge market growth going forward.

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Market Driver - Rising defense budget of multiple countries

With rising geopolitical tensions and security threats across various regions, many countries are significantly ramping up their defense spending in recent years. The focus on modernizing armed forces with latest weapons and platforms has led to growing demand for ammunition. The U.S., for instance, has witnessed steady growth in its defense budget over the past decade due to lengthy military campaigns in West Asia and renewed strategic competition with China and Russia. It is expected to remain one of the largest ammunition importers globally to sustain ammunition stockpiles of its army units. For instance, according to data from the Stockholm International Peace Research Institute (SIPRI), world military expenditure reached an all-time high of $2.1 trillion in 2021.

Market Challenge - Stringent government regulations on ammunition sale and export

The global ammunition market is facing stringent challenges due to increasing government regulations across various countries on sale and export of ammunition. Many countries have now enacted strict laws requiring extensive background checks and restrictions on bulk purchases of ammunition. Additionally, the export of ammunition has also become challenging with new rules and compliance requirements imposed by regulatory bodies. According to data from the United Nations Office on Drugs and Crime, the global seizures of ammunition shipments doubled from 2020 to 2021 reflecting increased trade monitoring by governments.

Market Opportunity - Development of less lethal and non-lethal ammunition for market

The global ammunition market has a huge untapped opportunity in the development of less lethal and non-lethal ammunition. With growing emphasis on safety and restraint, military and law enforcement agencies are showing interest in adopting alternative ammunition that can temporarily incapacitate a target without risk of serious injury or death. Leading manufacturers can gain a competitive edge by investing in R&D to create innovative ammunition like rubber bullets, tear gas shells, acoustic hailing devices, etc. catering to this niche segment. For instance, the UN reports that arms export licences were denied to Eastern European countries by Western nations in 2021 due to human rights concerns.