The ammunition market has seen considerable growth due to a variety of factors.
• In recent years, the ammunition market has seen substantial growth. It is projected to expand from $28.43 billion in 2024 to $30.29 billion in 2025, maintaining a compound annual growth rate (CAGR) of 6.5%.
Factors contributing to this growth during the historic period include military modernization, expansions in global defense budgets, rising terrorism threats, upgrades in weapon systems, regional security worries, and law enforcement requirements.
The ammunition market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the ammunition market is projected to witness robust expansion. It's set to reach a market size of $40.31 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 7.4%.
Several factors contributing to this growth in the predicted period include the demands of modern warfare, counterterrorism efforts, issues related to cybersecurity, worldwide arms trading, societal unrest, and public safety concerns. During the forecast period, significant trends are expected to include non-lethal rounds, advancements in propellant and casing technologies, sustainability measures in ammunition production, ammunition miniaturization, and improved training ammunition.
The ammunition market's growth is projected to be propelled by the escalating defense spending. This refers to the funding set aside by a government to bolster and maintain its military might and national defense. The rise in defense spending is due to growing geopolitical issues, the necessity for military modernization, amplified counter-terrorism actions, and the emergence of novel security threats such as space defense and cybersecurity. The money directed towards ammunition from the defense spending is used to buy, develop, and sustain munitions which aid in military practice, operations, and battle preparedness. For example, in May 2024, the UK Parliament, a governing body based in the UK, disclosed that £54.2 billion (around $66.4 billion) was dedicated to defense spending in the 2023/24 fiscal year. This number is predicted to surge to £57.1 billion (nearly $69.4 billion) in the fiscal year 2024/25, denoting a 4.5% increase in real terms. Hence, the ammunition market's expansion is being spurred by an increase in defense spending.
The ammunition market covered in this report is segmented –
1) By Product: Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars
2) By Caliber: Small, Medium, Large, Other Calibers
3) By Guidance Mechanism: Non-guided, Guided
4) By Application: Defense, Less-lethal
Subsegments:
1) By Bullets: Centerfire Bullets, Rimfire Bullets, Hollow Point Bullets, Full Metal Jacket Bullets, Tracer Bullets
2) By Aerial Bombs: Guided Bombs, Unguided Bombs, Cluster Bombs, Incendiary Bombs
3) By Grenades: Fragmentation Grenades, Smoke Grenades, Stun Grenades, Tear Gas Grenades
4) By Artillery Shells: High-Explosive Shells, Guided Artillery Shells, Smoke Shells, Illuminating Shells
5) By Mortars: Mortar Bombs, Illumination Mortar Shells, Smoke Mortar Shells, High-Explosive Mortar Shells
The trend of investing in the research and development of superior ammunition is highly prevalent in the ammunition market. Major players and interested parties are increasingly concentrating on R&D efforts to enhance the quality of ammunition. The surge in armed conflicts worldwide has prompted many nations to amplify their military capabilities by investing in advanced ammunition and related weaponry. This has subsequently resulted in a significant growth in the global expenditure on ammunition procurement and research and development. For instance, in February 2024, The Adani Group, a multi-sector conglomerate headquartered in India, opened the country's first private sector ammunition and missile production complex in Kanpur, Uttar Pradesh. The aim of which is to ensure greater security and economic prosperity. The facility is expected to manufacture top-notch small, medium, and large caliber ammunition, catering to approximately 25% of India's yearly needs.
Major companies operating in the ammunition market include:
• General Dynamics Corporation
• Northrop Grumman Corporation
• CBC Global Ammunition
• Lapua Ammunition
• Olin Corporation
• Alliant Techsystems Inc.
• Vista Outdoor Inc.
• Ruag Ammotec
• Nammo AS
• Remington Arms Company
• Fiocchi Munizioni S.p.A.
• Magpul Industries (Magpul Ammunition)
• Browning Ammunition
• Hornady Manufacturing Company
• Norma Precision AB
• Nosler Inc.
• Black Hills Ammunition
• Barnes Bullets LLC
• PMC Ammunition
• Dynamic Research Technologies
• Underwood Ammunition
• Atomic Ammunition
• Buffalo Bore Ammunition
• DoubleTap Ammunition
• ELEY (ELEY Ammunition)
• Aguila Ammunition
• GECO Ammunition
• PolyCase Ammunition
• SBR Ammunition
• SIG Sauer (SIG Sauer Ammunition)
• Dynamic Munitions
North America was the largest region in the ammunition market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ammunition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.