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Ammunition Market Size, Share & COVID-19 Impact Analysis; by Application (Military & Homeland Security, and Civil & Commercial) By Caliber (Small, Medium, and Large) By Product (Bullets, Aerial Bombs, Grenades, Mortars, Artillery Shells, and Others), By Component (Fuses& Primers, GunPowder, Projectile, Cases, and Others) By Guidance (Guided, and Non-Guided) By Lethality (Lethal, and Less-Lethal) and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI103481

 

KEY MARKET INSIGHTS

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The global ammunition market size was valued at USD 25.46 billion in 2019 and is projected to reach USD 29.96 billion by 2027, exhibiting a CAGR of 1.71% during the forecast period from 2020–2027.

COVID-19 Cover

This report covers COVID-19 impact analysis on Ammunition Market

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Ammunition is the object that can be shot from a weapon, such as bombs and bullets. It includes the propellant, a projectile, and a primer that ignites the propellant. It is manufactured using a variety of materials such as steel, brass, and others. The small and medium scale projectiles are majorly used for civilian use, such as shooting sports and self-defense. The large-caliber projectile is mostly used for military applications with the size of the caliber ranging from 50mm to 240mm.


Rise in the procurement of ammo by the defense forces, border security forces, and local enforcement agencies, due to increasing terrorist activities, political unrest, and geopolitical tensions drive the market. Furthermore, the growing demand for small caliber projectile by civilians and the homeland security department due to lesser lethality would drive the market growth.


In 2016, BAE Systems launched a new high performance 7.62mm small ammo. It can defeat lightly protected vehicles and aircraft at longer ranges. In 2019, Reload Swiss launched its new universal rifle projectile powder, RS76. This powder is suitable for different calibers such as .338 Lapua Magnum, .338 norma magnum, 7mm Remington Magnum, and .300 norma magnum.


COVID-19 Impact:


In March 2020, the guns and ammo sales have increased drastically in the U.S. First time gun owners felt insecure due to COVID-19. Thus there is the surge in the gun buying due to COVID-19, while that the frequent users thought that there would be strict rules from the U.S. government on gun and ammunition purchase.


Lucky Gunner spokesperson, Anthony Welch, said that the sales of 9mm ammunition increased by 500 percent. While, .223 and 5.56—rounds used in the AR-15 and other semiautomatic rifles—are up by 900 percent.


On the other hand, most of the countries banned guns and ammo sales due to COVID-19. On March 31, three Australian states banned the sale of ammo and guns to recreational and sporting shooters due to coronavirus.


LATEST TRENDS


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Adoption of Advanced 9mm Cartridge to Drive Market Growth


Nowadays, the 9mm cartridge is gaining more popularity as compared to the other calibers. The adoption of a 9mm caliber is due to its versatile performance and the advancements in technology. The latter has improved its performance. In October 2015, the FBI announced that its agents would carry 9mm pistols instead of .40 S&W. The main advantage of the 9mm round's design is its reduced recoil that provides a tactical advantage. Reduced recoil enables faster target reacquisition that helps in creating more accurate and faster follow-up shots. Furthermore, it is cost-efficient and popular among frequent shooters.


Development of Self Guided Bullet Will Create Better Opportunity for Key Players


The development of self-guided smart bullets that can change their path will be a key opportunity for manufacturers. The Extreme Accuracy Tasked Ordnance (EXACTO) program conducted by the Defense Advanced Research Projects Agency (DARPA) has developed a 50-caliber round that is a first guided small-caliber bullet. The projectile changes its path in mid-flight as it has a real-time optical guidance system. It helps in improving sniper accuracy and overcoming adverse weather conditions. Furthermore, the U.S. Army has developed technologically advanced laser-guided for sniper bullets, that would help the defense forces to track the target in unfavorable conditions such as windy and harsh weather.


DRIVING FACTORS


Growing Personal Safety Concerns and Increasing Shooting Ranges is Propelling Market Growth


Ammunition is mostly used in handgun, shotgun, and rifles with different calibers. Increasing procurement of small caliber ammo by civilians for personal safety and the growing number of shooting ranges would drive the growth of the market. Increasing terrorist activities and mass shooting incidence are leading to increased personal safety, which, in turn, is creating demand for handguns. Expansion of the shooting ranges industry due to fears of terrorism increased fears over stricter gun control laws, and political rhetoric would propel the growth of the market.


Political Conflicts, Geopolitical Tensions, and Cross Border Issues in Various Countries to Drive Growth


Growing incidence of geopolitical tensions, political unrest, and cross border conflicts, especially in the Middle East and Asian countries, would lead to the strengthening of the military forces. The expansion of the military and increased procurement of small, medium, and large-caliber ammunition would drive the growth of the global market. Large caliber ammo is mostly used in defense forces for combat operations in several countries such as Japan, Russia, South Korea, and others. Furthermore, manufacturers are increasing spending on R&D activities to develop technically advanced ammo, thus propelling market growth.


RESTRAINING FACTORS


Imposing Gun Control Legislation From Different Government Agencies


The stringent government rules and regulations for the use of firearms is the major factor hampering the growth of the global market. After the Christchurch shooting incidence in New Zealand, the government has reformed its gun laws. It imposed strict regulations on the use of guns, such as only license holders can purchase guns with strict background checks. Furthermore, the Australian government banned semi-automatic and fully automatic firearms from civilian ownership after the Port Arthur Massacre mass shooting incident that killed 35 people.


Due to the spread of coronavirus across the globe, sales have decreased in most of the countries. Due to lockdown, the ammo manufacturing companies stopped production, which, in turn, would result in a decrease in the guns and ammo sales. Thus, it would hamper the growth of the market.


SEGMENTATION


By Caliber Analysis


Large Caliber Segment to Lead the Ammunition Market


Based on caliber, the market is segmented into small, medium, and large. Among these, the large-caliber ammo segment holds the highest market share. Rising threats from terrorist organizations, growing political conflicts, and increasing defense expenditure are the key factors driving the growth of this segment.


The small caliber segment is estimated to showcase significant growth during the forecast period. The growth is attributed to the increasing use of small caliber in a handgun as well as a rifle. In February 2020, the gun and sales in the U.S. reached record high due to the COVID-19 pandemic. Ammo.com, a retail online projectile store in the U.S., has witnessed an increase in the transactions by 68% in just 11 days. The medium caliber segment will exhibit moderate growth during the forecast period owing to the rising demand from the military forces for combat operations.


By Application Analysis


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Military & Homeland Security Segment to Hold Largest Share Backed by Demand from Military Forces


Based on the application, the market is classified into military & homeland security and civil & commercial. The military & homeland security segment is anticipated to hold the largest market share in the global market during the forecast period. This growth is attributable to the growing demand for ammunition from military forces due to political unrest, cross border conflicts, and military modernization initiatives in various countries across the globe.


The civil & commercial segment will showcase significant growth in the market. The growth is attributed to the rising demand for guns for personal safety, the rapid expansion of shooting ranges, and the increasing popularity of shooting sports.


By Product Analysis


Rising Demand for Bullets From Defense Forces is Propelling the Segment


By product, the market is classified into bullets, aerial bombs, grenades, mortars, artillery shells, and others. The bullets segment holds the largest market share and will continue its domination during the forecast period. The growth is attributed to the increasing defense expenditure, rising political conflicts, and the development of advanced products. The aerial bombs and grenades segments would exhibit significant growth in this market owing to the increased contracts from defense forces, raising concerns over security issues, and strengthening of military forces. In April 2019, Boeing signed a contract worth USD 65 million with the United States Air Force (USAF) to supply small diameter bomb increment I miniature munitions.


The mortars and artillery shells segments would show moderate growth owing to the increasing demand for mortar projectiles for military applications. In December 2018, NIOA signed a three-year contract with the Australian defense forces of worth USD 81.6 million to provide 81mm live and practice mortar ammunition.


By Component Analysis


Case Segment to Remain at the Forefront Stoked by Their High Usage


Based on components, the market is classified into fuzes and primers, gunpowder, case, projectiles and warheads, and others. The case segment holds the largest and significant share for this market. The cartridge case is made up of brass, aluminum, steel, or plastics. The brass case is more popular and easy to manufacture. Some handgun caliber cases are nickel plated for corrosion resistance and durability in reloading. In September 2018, Armtec Defense Products signed a contract with the U.S. Army worth USD 35.9 million for the production and delivery of M231/M232 combustible case cartridges.


The fuzes and primer segment will showcase significant growth during the forecast period owing to the increasing demand for rimfire primers for low-cost ammo and high adoption of centerfire primers for military applications. Furthermore, an increasing use of time fuze in large ammo would drive the growth of this segment. The development of different varieties of projectiles would propel the growth of the projectile and warhead segment.


By Guidance Analysis


Rising Application in Combat to Drive Growth of Non-guided Segment


By guidance, the market is classified into guided and non-guided. The non-guided segment holds the largest ammunition market share. The growth is attributed to the increasing use of conventional non-guided projectile for combat operations by military forces across the world.


The guided segment will showcase the fastest growth during the forecast period owing to the growing demand for precision-guided projectile worldwide. In April 2019, Elbit Systems signed a contract of worth USD 30 million with the Asia Pacific to supply its precise guided mortar munition (GMM), STYLET. In 2017, BAE Systems and Leonardo made a partnership on new precision-guided munitions for large caliber weapon systems for the U.S. and allied military and armed forces.


By Lethality Analysis


Rising Demand for Less Lethal Ammunition from Law Enforcement Agencies to Propel Growth of the Segment


By lethality, the market is segmented into lethal and less lethal. The lethal segment holds the largest market share. Lethal ammo is used by individuals by obtaining permits from the respective authorities. The less-lethal segment would exhibit significant growth during the forecast period due to the increasing demand from law enforcement agencies and the military. The less-lethal ones use rubber bullets, plastic bullets, bean bag rounds, flash-bang rounds, smoke munition, and others. They are most commonly used for riots and crowd control. Technological advancements, including the availability of different chemical alternatives such as smoke grenades, pepper balls, and others, are set to influence the growth of the segment during the forecast period.


REGIONAL INSIGHTS


North America Ammunition market size, 2016-2027 (USD Billion)

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The ammunition market has been segmented into North America, Europe, Asia Pacific, The Middle East, and the rest of the world. North America is estimated to be the largest market during the forecast period. This growth is attributed to the increasing expenditure on research & development and the procurement of advanced ammunition from the U.S. army. Due to COVID-19, there is increasing insecurity among people that would lead to a surge in the sales of ammo and guns in the U.S. FBI’s National Instant Criminal Background Check System (NICS) had reported over 30% monthly surge in the background checks for handguns and long guns in February 2020. Thus, the market in North America will exhibit exponential growth in 2020. The ammo sales are occurring through stockpiling from stores, but there are some states where ammo production had stopped due to lockdown.


Asia-Pacific will showcase significant growth in the market during the forecast period. The growth is attributed to the expansion of military forces in countries such as China, India, South Korea, and others. Furthermore, the increasing defense expenditure and military modernization programs in countries such as India, Japan, and China would drive the growth of the market across the region.


In Europe, an increase in the procurement of guns and projectiles in countries such as Russia, Germany, the U.K, and others due to increasing demand for defense as well as commercial applications would drive the market across the region. The Middle East will exhibit significant growth owing to the increasing defense expenditure in countries such as Saudi Arabia, Israel, and others. The rest of the world would show moderate growth during the forecast period. This growth is owing to the increasing expenditure on defense and strengthening of military forces by several countries in the region.


INDUSTRY KEY PLAYERS


Increasing Expenditure on R&D to Develop Lethal Ammunition by Key Market Players to Drive Growth


Nowadays, key players are focusing on the development of lightweight lethal ammo and multipurpose munitions. Besides, the introduction of advanced technologies such as caseless ammo, laser initiated ammo, precision-guided munitions, and green ammo are the key ammunition market trends. A diversified portfolio and continuous R&D investments are the factors responsible for the dominance of these key market players.


LIST OF KEY COMPANIES PROFILED:



  • BAE Systems (The U.K)

  • CBC Global Ammunition (Brazil)

  • Denel SOC Ltd (South Africa)

  • General Dynamics Corporation (The U.S.)

  • Nammo AS (Norway)

  • Nexter group KNDS (France)

  • Northrop Grumman Corporation (The U.S.)

  • Olin Corporation (The U.S.)

  • Poongsan Corporation (South Korea)

  • RAUG Group (Switzerland)

  • Thales Group (France)

  • Vista Outdoor, Inc. (The U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • April 2015 - Orbital ATK signed a contract with the U.S. Army for tactical and target practice large and medium caliber ammo valued USD 120 million. The medium-caliber ammo orders included a range from 20mm, 25mm, 30mm to LW30mm ammo for multiple services for use with air, sea, and land weapons platforms

  • January 2020- Elbit Systems Ltd. signed a five-year contract with the Israeli Ministry of Defense (IMOD) of worth USD 144 million for the supply of ammo to the country’s military forces.


REPORT COVERAGE


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The ammunition market report offers qualitative and quantitative insights on the market and the detailed analysis of market size & growth rate for all possible segments in the market.


Along with this, the report and study provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


Report Scope& Segmentation


























































SEGMENTATION



DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion)



By Application




  • Military & Homeland Security

  • Civil & Commercial



By Caliber




  • Small

  • Medium

  • Large



By Products




  • Bullets

  • Aerial Bombs

  • Artillery Shells

  • Grenades

  • Mortars

  • Others



By Components




  • Fuzes & Primers

  • GunPowder

  • Cases

  • Projectiles and warheads

  • Others



By Guidance




  • Guided

  • Non-Guided



By Lethality




  • Less-Lethal

  • Lethal



By Region




  • North America (The U.S., and Canada)

  • Europe (The U.K, Germany, France, Russia, Italy, and Rest of Europe)

  • Asia Pacific (China, India, Japan, South Korea, and Rest of Asia Pacific)

  • The Middle East (Saudi Arabia, Turkey, Israel, and Rest of the Middle East)

  • Rest of the World (Latin America, and Africa)



Frequently Asked Questions

Fortune Business Insights says that the global ammo market was valued at USD 25.46 billion in 2019 and is projected to reach USD 29.96 billion by 2027.

Growing at a CAGR of 1.71%, the market will exhibit steady growth in the forecast period (2020-2027).

In 2019, the market value stood at USD 25.46 billion.

The military & homeland security segment is estimated to be the leading segment in this market during the forecast period.

Growing defense expenditure from most of the countries and increasing the use of handgun and rifles in the military and homeland security would drive the growth of the market.

Poongson Corporation, General Dynamics Corporation., Olin Corporation, Northrop Grumman Corporation, and others are some of the leading manufacturing companies in the market.

North America is projected to be the largest shareholder in the global market. Increasing the use of small arms for commercial and military applications in the U.S. is anticipated to boost growth.

The development of smart bullets and live ammo are the latest trends in the market.

Ammunition Market Size, Share and Global Industry Trend Forecast till 2026
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  • 2016-2018
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