Automatic Weapons Market Size, Share & COVID-19 Impact Analysis, By Product (Automatic Rifles, Machine Guns, Automatic Launchers, Automatic Cannons, and Gatling Guns), By Type (Fully Automatic and Semi-Automatic), By Caliber (Small Caliber, Medium Caliber, and Large Caliber), By End Use (Land, Naval, Airborne, and Handheld & Stationary) and Regional Forecast, 2020-2027

The global automatic weapons market size was USD 8.44 billion in 2019 and is projected to reach USD 15.04 billion by 2027, exhibiting a CAGR of 7.85% during the forecast period.

Automatic weapons are technologically advanced self-loading weapons. They are a combination of fully automatic firearms and semi-automatic firearms. These firearms improve the single-rounded fire aiming capability of these weapons. The rising demand for highly accurate and fully automatic weapons will boost the market growth.

In the year 2020, key companies are focusing on gaining major contracts with government authorities. For instance, recently, in April 2020, the U.S.-based FN America LLC and Colt’s Manufacturing Co. LLC signed a contract with a valuation of USD 383.3 million to supply M16 assault rifles to Afghanistan, Iraq, Nepal, Grenada, and Lebanon. Thus, the rise in such contracts has facilitated the growth of the market.

Increasing Focus on Defense Expenditure by Nations amid COVID-19 to Propel Growth

The COVID-19 pandemic is expected to have a positive impact on this market in the forthcoming years. From March 2020, sales of automatic weapons have increased dramatically across the globe.

• According to a New York Times analysis of federal data, in the U.S., approximately 1.9 million guns were sold during the coronavirus outbreak. This growth was attributed to the fear among people about the changes in regulatory norms by the federal states of the U.S. during the pandemic. This has promoted bulk buying of weapons in the pandemic period.


• In addition to this, the Government of India is focusing on improving the strength of the Indian army by providing advanced weapons systems during battlefield operations. In Aug 2020, the India-based ordnance factory board developed a prototype Nag Missile Carrier-launcher (NAMICA) for Nag Missile. It was mounted on an Infantry combat vehicle. Nag is a technologically advanced automatic target missile developed by the Defense Research and Development Organization (DRDO) to improve the attacking capacity of the Indian Army. These factors have boosted the growth of the market analysis during the COVID-19 pandemic period.

LATEST TRENDS

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Introduction of Technologically Advanced Integrated Air Defense Weapon System (IADWS) to Drive Market Growth

In February 2020, the U.S. Department of Defense signed a contract with the Government of India. In this government-to-government deal, the U.S. Department of Defense will provide technologically advanced integrated air defense weapon systems (IADWS) to the Indian Army. This contract is expected to be worth USD 1,867.4 million.

The IADWS is developed by the U.S. based Raytheon company in partnership with Norway-based KONGSBERG. The integrated air defense weapon system (IADWS) was initially identified as the national advanced surface-to-air missile system (NASAMS). The NASAMS consisted of guidance systems, radar systems, launchers, stinger missiles, and advanced medium-range surface-to-air missiles.

DRIVING FACTORS

Rising Incidents of Cross-Border Conflicts across the Globe is Propelling the Market Growth

Countries across the globe have witnessed a drastic increase in border conflicts for the past few years. The conflicts between China and India border dispute, India and Pakistan border dispute, Venezuela and Colombia border dispute, North Korea and South Korea border disputes, and Iraq and Syria border disputes are the major cross-border conflicts in the past sixty years.

The rising incidents of cross-border conflicts across the globe are propelling the demand for these weapons to improve the battlefield capacity of the army. In February 2019, the U.S. government signed a contract with the Indian government to supply 72,000 Sig 716 assault rifles for the Indian Army amidst the ongoing border dispute with China over boundary issues in Doklam.

Advancements in Automatic Weapon Systems are Expected to Drive the Market Growth

The advancements in automatic weapon systems such as modular advanced armed robotic systems (MAARS), black knight unmanned combat vehicles, and laser weapon systems are projected to boost the growth of the market. The MAARS robot has a grenade launcher, a 400 round M240B machine gun, and 12 hours’ battery backup with a top speed of 7 mph. The MAARS is a heavily armed robotic device that is designed to save lives during battlefield operations.

The black knight is another example of an advanced version of an unmanned combat vehicle equipped with a 30mm cannon and 7.62mm coaxial machine gun. It is majorly used in high-risk situations to avoid an unnecessary threat from the opponent’s military troops. The laser weapons system is mounted on naval vessels and acts as a vessel-mounted laser cannon. This laser system is cost-effective and accurate compared to conventional projectile weaponry systems. The increasing demand for advanced automotive weapon systems from emerging economies such as China and India is projected to boost the market growth.

RESTRAINING FACTORS

High Initial Development Cost of Precision-Guided Firearms to Restrict Market Growth

The high cost associated with the development of precision-guided firearms is a prime factor hampering the market growth. Precision-guided firearms comprise advanced fire control and heads-up display technology. The advanced fire control technology improves the operational efficiency of firearms at a long range to hit the target. The companies are involved in research and development activities to design and develop cost-effective firearms.

SEGMENTATION

By Product Analysis

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High Demand for Automatic Rifles from Several Armed Forces is Propelling Market Growth

On the basis of product, the market includes automatic rifles, machine guns, automatic launchers, automatic cannons, and Gatling guns.

The automatic rifles segment held a dominant share of the market in 2019. The dominance is due to the increasing demand for automatic rifles from several armed forces across the world specifically from Asian Countries.

The machine guns segment is projected to register a higher CAGR by 2027 due to the increasing use of machine guns from the naval forces as well as border security forces during the battlefield operation. The replacement of conventional machine guns with light machine guns is expected to grow and fuel the market growth.

The automatic launchers are further classified as grenade launchers, missile launchers, and mortar launchers. The surging demand for an integrated 40mm automatic grenade launcher system from the North Atlantic Treaty Organization (NATO) force is projected to boost the market. Moreover, the rising spending from the U.S. and Russia to upgrade long-range weapons such as missile launchers and short-range attacking weapons such as mortar launchers is anticipated to drive the market.

The increasing demand for lightweight automatic cannons and the growing application of Gatling guns on combat aircraft and warships are expected to boost the growth of the automatic weapons industry.

By Type Analysis

Increasing Demand for Semi-Automatic Weapons from Ukraine, India, Pakistan, and Syria to Boost Market Growth

This market segment by type, the market is classified as fully automatic and semi-automatic.

The fully automatic segment is projected to register a higher CAGR during the forecast period. This growth is attributed to the ease of accessibility of automatic weapons during battlefield operations.

The semi-automatic segment held the largest automatic weapons market share during the forecast period. The dominance is due to the increasing demand for semi-automatic weapons from Ukraine, India, Pakistan, and Syria to control their regional tensions.

By Caliber Analysis

Growing Usage of Medium Caliber in Assaults Rifles is Expected to Fuel Market Growth

Based on caliber, the market is segmented into the small caliber, medium caliber, and large caliber.

The small caliber segment is expected to have a dominant share in the market during the forecast period. The dominance is due to enhanced performance, penetration range, and lethality of small caliber assault rifles during the battlefield operation. The small calibers are majorly used in Adcor A-556, Barrett REC7, and Colt CM901 assault rifles.

The medium-caliber segment is anticipated to showcase a significant CAGR during the forecast period. The growth is attributed to the multipurpose ammunition with tracer capability of medium caliber. The medium caliber is classified as 20mm, 25mm, 30mm, 40mm, and others. The medium calibers are majorly used in the Anzio rifle, M82 rifle, MK 108 assault rifle, and others.

The large caliber segment exhibits significant growth during the forecast period. This growth is attributed to innovation in the large-caliber machine guns to increase the range and accuracy of large caliber weapon systems.

By End Use Analysis

Replacement of Conventional Systems with Advanced Combat Systems in Fighter Aircraft Propel Growth of Airborne Segment

In terms of end-use, the market is segmented into land, naval, airborne, and handheld & stationary.

The land segment is classified as battle tanks, armored fighting vehicles (AFVs), and light protected vehicles (LPVs). The land segment is anticipated to have a dominant share in the market during the forecast period. This dominance is due to the increasing use of battle tanks, AFVs, and LPVs in combat operations.

The naval segment is classified as destroyers, frigates, corvettes, and offshore patrol vessels (OPVS). The increasing demand for precision weapon systems on the naval platform from the developed economy such as the U.S. and the U.K is propelling the market growth.

The airborne segment is anticipated to project a significant CAGR during the forecast period. The growth is attributed to the replacement of conventional systems with advanced combat systems in fighter aircraft, combat support aircraft, and helicopters.

The handheld & stationary segment is likely to exhibit significant automatic weapons market growth during the forecast period. This growth is attributable to the increasing demand for handheld & stationary weapons from the middle east countries such as Saudi Arabia, Israel, and Turkey to upgrade their defense capabilities.

REGIONAL INSIGHTS

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The market size in North America stood at USD 3.06 billion in 2019. The market in North America is anticipated to be the largest market during the forecast period owing to the presence of key players in the U.S., which include General Dynamics Corporation, Northrop Grumman Corporation, and Colt’s Manufacturing Company LLC. The U.S. government is focusing on strengthening its automatic weapon, battle tanks, armored fighting vehicles, and light-protected vehicles.

The Europe automatic weapons market is projected to show significant growth during the forecast period owing to the presence of key players in Europe, which include BAE Systems, FN Herstal, Kalashnikov Concern, and the KBP Instrument Design Bureau. According to the Stockholm International Peace Research Institute (SIPRI) report (2019), Russia has retained the second rank in the world's arms export.

The Asia Pacific is expected to exhibit healthy growth owing to the expanding arms and ammunition industry in China and India. In addition to this, key market players in Asia-Pacific, such as China North Industries Corporation (Norinco) and Ordnance Factory Board (India), are increasing their funding, which in turn, will propel the growth of the market.

In the Middle East, the increasing demand for automatic launchers, automatic cannons, and self-attacking drone systems from Saudi Arabia and Turkey is propelling the market growth.

The rest of the world registers remarkable growth during the forecast period. This growth is attributed to the increasing spending on automatic rifles, machine guns, and automatic launchers from Latin America and Africa.

KEY INDUSTRY PLAYERS

Key Market Players are Implementing Innovation in Automatic Weapon is Refueling the Market Growth

The designing of the modular advanced armed robotic system, laser weapon system, personnel halting, and stimulation response (PHASR) rifle, and XM25 counter defilade target engagement system are the upcoming trends in the market. A diversified product portfolio, coupled with advanced technology trends and research ideology accepted by key players, is the prominent factor to boost the market.

LIST OF KEY COMPANIES PROFILED:

• BAE Systems (The U.K.)


• Denel Land Systems (South Africa)


• FN Herstal (The U.K.)


• General Dynamics Corporation (The U.S.)


• Kalashnikov Concern (Russia)


• KBP Instrument Design Bureau (Russia)


• Northrop Grumman Corporation. (The U.S.)


• Rheinmetall AG (Germany)


• ST Engineering (Singapore)

KEY INDUSTRY DEVELOPMENTS:

• August 2020 – Russia based Kalashnikov Group launched an upgraded version of the AK-12 assault rifle. This assault rifle was chambered for NATO’s 5.56mm rounds. The upgraded version of the AK-12 assault rifle is equipped with a lightweight telescopic-type buttstock, sight, and slotted flash suppressor.


• March 2020 –Rheinmetall and Switzerland’s Federal Office for Defense signed a contract to supply rifle-mounted laser targeting modules to Swiss army. In this contract, Rheinmetall is further expected to supply accessories, spare parts, and training support for the Swiss Army.

REPORT COVERAGE

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The market research report provides structured industry analysis and majorly focuses on key aspects such as leading market players, product, types, caliber, and leading technological trends of the product. Besides this, the report offers insights into the automatic weapons market trends and highlights key industry developments. Furthermore, the report provides several factors that have contributed to the growth of the market over recent years.

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