High-Explosive (HE) Ammunition Market Size, Share, & Industry Analysis, By Ammunition Type (Blast Fragmentation, Blast (B-HE), Shaped Charge, Thermobaric, & Multi-Purpose), By Caliber (Small Caliber, Medium Caliber, & Large Caliber), By Platform (Infantry Weapon, Ground Vehicles, Naval Vessels, Aircraft & Coastal Defense/Stationary Systems), By Application (Anti-Personnel, Armor-Piercing, Anti-Structure, Area Suppression, Precision Strike, Demolition/Breaching, Naval Surface Targets, & Anti-Submarine), By End Users (Defense, homeland Security, & EOD Agencies), & Regional Forecast, 2026-2034

The High-Explosive (HE) ammunition market has been showing dynamic growth due to surging defense expenditures and modernization processes in many countries. HE ammunition plays a key role in military operations, offering massive destructive capabilities to improve combat efficiency. It is driven by escalating geopolitical tensions and the requirement for sophisticated weaponry in military forces. Also, advances in technology and innovation in the design of munitions are increasing accuracy and efficiency, further driving market growth. The market is distinguished by a wide variety of applications ranging from land, air, and naval systems, making it a necessary element of military strategy and national security programs. With continued investment in defense technologies, the HE ammunition market is expected to continue growing during the forecast period.

High-Explosive (HE) Ammunition Market Driver

Rising National Security Concerns and Modernization of Armed Forces are Driving Market

The development of the High-Explosive (HE) Ammunition market is heavily driven by an aggregate of increasing national security interests and continuous armed forces modernization across the world. As countries place a growing emphasis on their defense capabilities due to geopolitical tensions and developing threats, the requirement for sophisticated munitions, such as HE ammunition, is accelerating. Military forces are also investing in the modernization of their arsenals to increase operational efficiency and deterrence power, further driving market growth. Technological advancements and the development of better HE munitions to address changing military needs also support this trend. Collectively, these factors are anticipated to drive the market considerably over the forecast period.

For instance, in July 2023, Rheinmetall expanded a framework order with the German Bundeswehr (multi-billion euro) for 120 mm and other ammunition types to restock and scale tank & artillery HE supplies across Europe.

High-Explosive (HE) Ammunition Market Restraint

International Trade Restrictions, Supply Chain Volatility, and Environmental Concerns are Hindering Market

The High-Explosive (HE) ammunition industry is presently subjected to various limiting factors that are hindering its growth and stability. Restrictive international trade policies have placed barriers in front of manufacturers and exporters, which are restricting entry into crucial markets and disrupting the smooth cross-border flow of HE ammunition. Moreover, supply chain uncertainty has become a key issue, with the disruptions in logistics and raw material sourcing resulting in production schedules and added costs, ultimately impacting the market. In addition, increasing environmental scrutiny of the production and use of explosive compounds is calling for stricter controls and regulations, compelling businesses to invest in greener practices, which may be time-consuming and expensive. Together, these factors may hinder the growth of the market during the forecast period.

High-Explosive (HE) Ammunition Market Trend

Precision-guided and Smart Ammunition are Merging as a Major Trend in Market

The High-Explosive (HE) ammunition industry is undergoing tremendous change, with a convergence of precision-guided and smart ammunition technologies being one of the primary trends. The increasing focus of military operations on accuracy and effectiveness while reducing collateral damage has been driving demand for ammunition that can accurately target enemies while adjusting to changing battlefield environments. This blending of next-generation guidance systems with old-fashioned high-explosive technology is refining the operational effectiveness of military forces around the globe. These factors are expected to propel the market during the forecast period.

Segmentation

 Analysis by Ammunition Type

By ammunition type, the market can be segmented into Blast Fragmentation (BF-HE), Blast (B-HE), Shaped Charge (SC-HE), Thermobaric, and Multi-Purpose (MP-HE).

The market is dominated by Blast Fragmentation (BF-HE), owing to its widespread use due to its ability to inflict blast and shrapnel damage across multiple platforms. It is widely used in conventional weapons like artillery, launchers, and general munitions.

For instance, in August 2024, MSM Group North America (Czech/CSG) won a USD 636.2 million U.S. Army contract to design and build a new 155 mm artillery ammunition production line at the Iowa Army Ammunition Plant intended to boost domestic production of 155 mm HE (blast/fragmentation) projectiles.

The thermobaric ammunition segment is set to register the fastest growth potential during the forecast, driven by its growing popularity in urban warfare and compact environments. Thermobaric rounds can create intense heat and pressure in a small area. Multi-Purpose (MP-HE) is also gaining traction due to its versatility in modern combat operations and dynamic environments. This adaptability has gained interest from the military globally, and this segment is also expected to show great growth during the forecast period.

Analysis by Caliber

The market can be segmented by caliber of the ammunition into small caliber, medium caliber, and large caliber.

Medium caliber ammunitions currently hold the largest market share, as this caliber offers a great balance between firepower and flexibility across various platforms like Infantry Fighting Vehicles (IFV), Naval, and airborne platforms.

For instance, in October 2024, the U.S. Army’s Medium Caliber Product Office awarded Northrop Grumman Defense Systems a USD 78.5 million contract for production of 30 mm airburst/advanced medium-caliber ammunition (next-gen airburst/HE rounds for 30 mm guns).

The small caliber ammunition segment is expected to show the fastest growth during the forecast period, driven by an increase in demand with a rise in asymmetric warfare, urban warfare, and a focus on developing better infantry weapon ammunition.

Analysis by Platform

The High-Explosive (HE) Ammunition market can be segmented by the platform on which it is used into infantry weapon, ground vehicles, naval vessels, aircraft, and coastal defense/stationary systems.

Ground Vehicles currently hold the largest market share, owing to their capability of integrating weapons that can utilize medium or large caliber ammunition, like cannons and heavy machine guns. These platforms are widely used for support and direct warfare operations.

For instance, in May 2024, the U.S. Army’s PM-MAS issued RFPs/production intents for the 120 mm Advanced Multi-Purpose M1147 (tank main-gun HE/MP rounds), a direct procurement/development example tied to ground-vehicle main armament munitions.

The small caliber segment is expected to show the fastest growth during the considered forecast period. This growth is attributed to the rise in demand for better infantry weapons, which generally use small-caliber ammunition. There is a sharp demand for lighter rounds, with increasing demand for more firepower. This segment provides a solution for the demands and is thus expected to show great growth during the forecast period.

Analysis by Application

The market can be segmented by application into anti-personnel, armor-piercing, anti-structure, area suppression, precision strike, demolition/breaching, naval surface targets, and anti-submarine.

This segment is primarily dominated by the anti-personnel and area suppression sectors, as HE ammunition is inherently designed to inflict damage over a broader area and is particularly effective against exposed or lightly protected troops and vehicles. These segments are anticipated to experience significant growth during the forecast period.

For instance, in August 2022, the U.S. Army Contracting Command awarded Federal Ammunition a five-year, USD 114.8 million contract to produce 5.56 mm (training/combat) rounds, a representative modern procurement supporting anti-personnel small-calibre ammunition stocks.

The anti-structure and demolition/breaching segment is projected to exhibit the fastest growth throughout the forecast period, propelled by increasing demand for munitions capable of neutralizing fortified targets. Urban warfare is another factor contributing to its expansion, as munitions adept at targeting structures in urban environments become increasingly important. Furthermore, precision strike munitions are also gaining traction, as guided munitions grow in popularity for accurate engagements and minimizing collateral damage.

Analysis by End Users

The market can be segmented by end users into defense, homeland security, and EOD agencies. The defense sector holds the largest market share due to large-scale procurement, a wide range of operations and testing, and ongoing modernization. This segment is expected to show significant growth during the forecast period as countries invest in strengthening national security and developing more advanced HE ammunition.

For instance, in April 2023, the U.S. Army awarded Lockheed Martin a USD 4.7 billion production contract for GMLRS rockets to replenish precision strike stocks for combat brigades a large defence customer HE procurement.

The homeland security sector is also expected to experience notable growth. Border control and counter-terrorism are major rising concerns, and combating such threats has increased the demand for improved ammunition and equipment, which is driving the market.

Regional Analysis

The High-Explosive (HE) Ammunition market can be segmented regionally into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America currently holds the largest market share. This region has a high military budget and conducts extensive research and development, widespread operations, and enjoys good infrastructure and manufacturing capabilities.

For instance, in August 2024, MSM Group North America won the approx. USD 636 Million Future Artillery Complex contract at the Iowa Army Ammunition Plant to build large-scale 155 mm production capacity, a major North American artillery/HE industrial investment.

The European region also holds a significant market share and is expected to show notable growth during this forecast period. The Russia-Ukraine conflict in this region is perhaps one of the most important factors that affect the market and has the capacity to propel the market in this region. This region also has good infrastructure and manufacturing capabilities with an active focus on military and defense modernization.

The Asia Pacific region is expected to show the fastest growth during the forecast period, driven by increasing military budgets and modernization programs by the military in developing countries like India, China, South Korea, and others. Certain nations also have to face geopolitical tensions, which further drive the market in this region. Overall, this region is poised for the fastest growth during the forecast period.

Key Insights

• The report covers the following key insights:
• Latest Technological Advancements/Developments.
• Increasing demand for High-Explosive (HE) Ammunition.
• Upcoming missions that have the potential to drive market growth.

Potential Market According to Regions

 Key Players Covered

• BAE Systems plc. -- (U.K.)
• Rheinmetall AG -- (Germany)
• General Dynamics Corp. -- (U.S.)
• Elbit Systems Ltd. -- (Israel)
• Thales Group -- (France)
•  Nammo AS -- (Norway)
• Saab AB -- (Sweden)
• American Ordnance LLC. -- (U.S.)
• Northrop Grumman Corp. -- (U.S.)
• RTX Corp. -- (U.S.)
• Leonardo S.p.A -- (Italy)

Key Industry Developments

• In April 2025, General Dynamics was awarded a USD 728 million contract to provide the US Army with an unspecified number of 120mm Insensitive Munition High Explosive Tracer (IM HE-T) rounds.
• In December 2024, India’s Ministry of Defence signed a major contract with Larsen & Toubro (L&T) for K9 Vajra-T 155 mm self-propelled guns (the platform contract implies downstream procurement and domestic scaling of 155 mm ammunition production and supply chains across the region).
• In August 2022, SAAB AB signed a 15-year framework agreement that allows the Norwegian Armed Forces to place orders for Carl-Gustaf ammunition and weapons. This includes the new programmable high-explosive round, HE 448, among other ammunition types.