Mortar Ammunition Market Size, Share, & Industry Analysis, By Caliber (60 mm, 81 mm, 82 mm, 120 mm, and Others), By Type of Ammunition (High Explosive (HE), Smoke, Infrared (IR flares/illuminating), Precision-Guided, Illumination (Visible light and IR), and Others), By Range (Short-Range, Medium-Range, and Long-Range), By Platform (Man-Portable, Vehicle-Mounted, and Autonomous/Unmanned), By End User (Army (Land Forces), Navy (Naval & Marine Forces), and Air Force (Airfield Defense Units)), and Regional Forecast 2026-2034

The global mortar ammunition market size was valued at USD 4.87 billion in 2025. The market is projected to grow from USD 5.09 billion in 2026 to USD 7.39 billion by 2034, exhibiting a CAGR of 4.79% during the forecast period.

Mortar ammunition refers to projectiles that are specifically engineered for mortar weapon systems, indirect-fire artillery pieces renowned for their portability, ease of deployment, and ability to deliver ordnance over varied terrains using highly arcing ballistic trajectories. These weapon systems represent a critical component of modern military architecture, normally operating across caliber ranges from 60mm up to 120mm, although some specialty variants extend beyond these parameters.

The expansion of the market is underpinned by the convergence of macroeconomic factors, growing defense expenditure, and geopolitical forces. First, cross-border tensions and active military conflicts, especially the Russia-Ukraine War, India-Pakistan border dynamics, and ongoing instability in the Middle East, have generated unprecedented ammunition demand. This demand presently outstrips global manufacturing capacity, creating delivery bottlenecks and accelerating procurement acceleration cycles.

The competitive dynamics of the mortar ammunition marketplace are semi-consolidated, with a limited number of multinational defense contractors holding established capabilities, relationships with governments, and production infrastructure. Key players include Rheinmetall AG, General Dynamics Corporation, BAE Systems, Saab AB, Elbit Systems, and Nammo AS.

Mortar Ammunition Market Trend

Growing Focus on Integrating Advanced Technologies into a Unified Guidance Architecture Boosts Market Development

Current trajectories of modern mortar ammunition development focus on integrating GPS, INS, laser, infrared, and radar sensing into a unified guidance architecture that enables autonomous target discrimination and precision engagement across diverse operational environments. The Strix utilizes twelve midsection lateral thruster rockets providing terminal-phase course corrections, enabling guidance accuracy sufficient to achieve direct hits on tactical targets at ranges of up to 7.5 kilometers when equipped with a sustainer motor. This configuration delivers lethality and accuracy characteristics that are an order of magnitude better than conventional unguided 120mm mortar rounds.

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Market Dynamics

Market Driver

Geopolitical Tensions Escalation Boosted the Demand for the Product

Unprecedented acceleration characterizes demand in the mortar ammunition market, driven by multiple concurrent geopolitical flashpoints requiring sustained military engagement. The full-scale Russian invasion of Ukraine in February 2022 set up a new baseline for the consumption of ammunition, with the NATO Allies and partner nations committing to sustained operations that have fundamentally reshaped global procurement priorities.

In November 2025, the U.S. authorized India to receive missiles and other ammunition to strengthen military readiness amid evolving regional security threats, showcasing how cross-border tensions are translating into procurement authorizations at the state level.

Market Restrain

Manufacturing Capacity Bottlenecks and Production Scaling Limitations to Hamper Market Growth

Unprecedented demand and capital investment in facility expansion continue to face structural production capacity constraints, resulting in delivery delays and limited supply responsiveness, hindering the mortar ammunition market growth. Manufacturing mortar ammunition relies on metals and chemical inputs that are experiencing significant scarcity, driven by supply-side constraints and geopolitically distorted trade flows that undermine Western production resilience.

Market Opportunity

Spare Manufacturing Partnerships Drive Market Growth

International collaboration models, such as the manufacturing of air-to-air missile launchers for France's Rafale fighter aircraft by the joint venture L&T MBDA Missile Systems at facilities in India, demonstrate how private sector partnerships can exploit spare manufacturing capacity across geographies while meeting technology transfer and indigenous capability development objectives.

Rheinmetall opened a new factory in August 2025, built exclusively for artillery shell production in Germany, directly addressing NATO's supply-chain vulnerabilities exposed by Ukraine conflict-driven ammunition consumption patterns. The expansion strengthens European manufacturing capacity and supports allied defense requirements without strategic dependence on transatlantic logistics networks.

Market Challenges

Geopolitically Distorted Supply Chains to Hinder Market Growth

Mortar ammunition manufacturing relies on copper, brass, zinc, nitrocellulose, antimony, and other specialized materials that are facing unprecedented supply pressures. These constraints stem from both structural mining constraints and geopolitically driven distorted trade disruptions, which have rendered traditional sourcing relationships unreliable.

SEGMENTATION ANALYSIS

By Caliber

82mm Caliber Mortar Ammunition Segment due to its Ability to Reduce Logistical Burden

Based on caliber, the market is divided into 60 mm, 81 mm, 82 mm, 120 mm, and others

The 82mm caliber mortar ammunition segment is estimated to be the fastest-growing segment in the market, as it aligns with modern military doctrine emphasizing force agility, rapid deployment, and reduced logistical burden. The 82mm caliber offers the best compromise between adequate firepower and portability, enabling deployment by light infantry, SOF, and rapid-reaction units without reliance on vehicle-based logistics.

The 120 mm segment is accounted for the largest mortar ammunition market share of 44.93% in 2025 and is estimated to grow at a CAGR of 5.36% during the forecast period.

By Type of Ammunition

Precision-Guided Segment to Lead due to Advanced Technology Integration

Based on type of ammunition, the market is divided into High Explosive (HE), Smoke, Infrared (IR flares/illuminating), Precision-Guided, Illumination (Visible light and IR), and others

The precision-guided segment is estimated to be the fastest-growing during the forecast period, driven by advanced technology integration that enables extended-range capabilities beyond traditional artillery ranges. For instance, in May 2025, a co-developed product by Norwegian firm Nammo and Boeing, a 155mm Ramjet artillery shell, was exhibited at FEINDEF 2025. This system symbolizes a paradigm-shift in precision-guided munition system designs, incorporating a solid fuel air-breathing ramjet propulsion system, which can deliver a range of 150 km, along with GPS/INS.

The High Explosive (HE) segment accounted for the largest market share of 60.12% in 2025 and is estimated to grow at a CAGR of 4.78% during the forecast period.

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By Range

Long Range Segment to Dominate due to Paradigm-Changing Ramjet Propulsion Technology

Based on range, the market is divided into short-range, medium-range, and long-range.

The long range segment is projected to be the fastest-growing market during the study period, driven by paradigm-changing ramjet propulsion technology that facilitates ranges previously impossible with existing artillery systems. The ramjet propulsion process begins shortly after firing and maintains high speeds utilizing an air-breathing thrust process at Mach 3 velocity for a period of 50 seconds after launch. This enables extended-range performance that surpasses traditional "Rocket-Assisted Projectile" solutions by a factor of two to three.

The medium-range segment is accounted for the largest market share of 62.33% in 2025 and is estimated to grow at a CAGR of 4.61% during the forecast period.

By Platform

Adoption of Advanced Loitering Munitions to Propel the Autonomous/Unmanned Segment Growth

Based on platform, the market is divided into man-portable, vehicle-mounted, and autonomous/unmanned.

The autonomous/unmanned segment is projected to grow at the fastest rate in the global mortar ammunition market, driven by the adoption of advanced loitering munitions and unmanned aerial systems. These systems offer integrated surveillance and precision-strike capabilities, inefficiently characterized by extended loiter time of 30-40+ minutes and the ability to engage targets without the need for human operation control.

The vehicle-mounted segment accounted for the largest market share of 57.92% in 2025 and is estimated to grow at a CAGR of 5.14% during the forecast period.

By End User

Army (Land Forces) Segment Leads due to its Ability to Provide Brigade-Level Fire Support

Based on end-user, the market is divided into Army (Land Forces), Navy (Naval & Marine Forces), and Air Force (Airfield Defense Units).

The Army (Land Forces) segment in the global mortar ammunition market retains an unchallenged leading market position, accounting for 85.83% of the total revenue. This dominance is driven by the segment’s fundamental institutional integration into brigade-level fire support networks across infantry, mechanized, and armored units within NATO forces, developing-world militaries, and regional defense forces worldwide.

The Navy (Naval & Marine Forces) segment accounted for the second-largest market share of 11.85% in 2025 and is estimated to grow at a CAGR of 3.74% during the forecast period.

Mortar Ammunition Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, the Middle East & Africa, and Latin America.

North America

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North America held the dominant share in 2025, valued at USD 1.67 billion, and also maintained its leading share in 2026, with USD 1.72 billion.  The growth is driven by military modernization, rising defense budgets (especially in the U.S.), geopolitical tensions, and demand for precision-guided munitions (PGMs) for urban warfare.

U.S. Mortar Ammunition Market

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 1.57 billion in 2025, representing a growth rate of 3.85% during the forecast period.

Asia Pacific

Asia Pacific is projected to record a growth rate of 6.54% in the coming years, which is the largest among all regions, and reach a valuation of USD 0.99 billion by 2025 to USD 1.75 billion by 2034.

China Mortar Ammunition Market

The Chinese mortar ammunition market in 2025 is estimated at around USD 0.39 billion, representing a growth rate of 5.06% during the forecast period.

India Mortar Ammunition Market

The Indian mortar ammunition market in 2025 is estimated at around USD 0.23 billion, representing a growth rate of 9.15% during the forecast period.

South Korea Mortar Ammunition Market

The South Korean mortar ammunition market in 2025 is estimated at around USD 0.11 billion, representing a growth rate of 6.06% during the forecast period.

Europe

Europe is projected to record a growth rate of 5.29% in the coming years, which is the second-largest among all regions, and reach a valuation of USD 1.29 billion in 2025 to USD 2.05 billion by 2034.

U.K. Mortar Ammunition Market

The U.K. mortar ammunition market in 2025 is estimated at around USD 0.16 billion, representing a growth rate of 3.44% during the forecast period.

Germany Mortar Ammunition Market

The U.K. mortar ammunition market in 2025 is estimated at around USD 0.19 billion, representing a growth rate of 5.63% during the forecast period.

Eastern Europe Mortar Ammunition Market

The Eastern European mortar ammunition market in 2025 is estimated at around USD 0.45 billion, representing a growth rate of 6.97% during the forecast period.

Middle East & Africa and Latin America

The Latin America and Middle East & Africa regions are expected to witness moderate growth in this market during the forecast period. The region is set to reach a valuation of USD 0.63 billion in 2025.

Saudi Arabia Mortar Ammunition Market

The Saudi Arabia mortar ammunition market in 2025 is estimated at around USD 0.15 billion, representing a growth rate of 5.15% during the forecast period.

COMPETITIVE LANDSCAPE

Key Market Players

Major Players Focus on Investments to Gain Maximum Market Share

The global mortar ammunition market exhibits an oligopolistic structure of relatively low intensity. In fact, there is greater competitive stratification among leading players, creating market leadership positions that are resistant to swift substitution. In this respect, the top global MNCs General Dynamics, BAE Systems, Northrop Grumman, Rheinmetall, Thales Group, Leonardo S.p.A., Nammo AS, Elbit Systems, Lockheed Martin, and Kongsberg Gruppen account for the maximum market share of revenue.

The mortar ammunition sector is characterized by extremely high barriers to entry, which include heavy investment requirements in manufacturing, facilities, and the need to achieve economies of scale to remain viable. The strategic competitive scenario portrays favorable environments for the successful profitability of the high-quality sector leaders with high technology and government relations, viability of the medium-quality sector with specialization by geographic area, and offers limited opportunities in lower-tier segments due to constrained geographic growth opportunities.

LIST OF KEY MORTAR AMMUNITION MARKET COMPANY PROFILES

• BAE SYSTEMS PLC (U.K.)
• Nammo AS (Norway)
• Rheinmetall AG (Germany)
• General Dynamics Ordnance and Tactical Systems, Inc. (U.S.)
• American Ordnance LLC (U.S.)
• STV GROUP a.s. (Czech Republic)
• Makine ve Kimya Endüstrisi A.Ş. (MKE) (Turkey)
• Munitions India Limited (MIL) (India)
• Elbit Systems Ltd. (Israel)
• Thales SA (France)
• JUNGHANS Microtec GmbH (Germany)
• NORINCO (China)
• MESKO S.A. (Poland)
• KNDS N.V. (Netherlands)

KEY DEVELOPMENT

• October 2025:- The Danish Ministry of Defence selected Danammo to provide artillery and mortar munitions for the enhancement of the national defense stockpiles. This contract includes deliveries of both 155mm artillery shells and 120mm mortar rounds, set to commence in 2026.
• August 2025: Belgium plans to acquire a variety of 120mm mortar shells in the coming six years as part of its initiative to establish a stronger and more credible defense capability.
• August 2025: MSM North America, which is a part of the international Czechoslovak Group (CSG), has secured a contract with the U.S. Army to design, build, and oversee the commissioning of the most sophisticated large-caliber ammunition loading facility in North America.
• October 2024: Rheinmetall obtained a contract from the Spanish government to deliver 84 units of its 81mm Eimos mortar systems, with the agreement worth around USD 161.76 million.
• August 2024:- The U.S. Department of State approved the Israeli government's application to acquire F-15IA, sophisticated air-to-air missiles with medium range, 120mm tank ammunition, a range of medium tactical vehicles, and M933A1120mm high-explosive mortar rounds through distinct Foreign Military Sales (FMS) agreements. Boeing, RTX, General Dynamics, Northrop Grumman, and Oshkosh have been identified as the main contractors.

REPORT COVERAGE

The global mortar ammunition market analysis includes a comprehensive study of the market size & forecast by all the market segments included in the report. It includes details on the market dynamics and global market trends expected to drive the market over the forecast period. It provides information on key aspects, including an overview of technological advances, pipeline candidates, the regulatory environment, and product launches. Additionally, it details partnerships, mergers & acquisitions, and key industry developments and prevalence by key regions. The global market research report also provides a detailed competitive landscape with information on the market share and profiles of key operating players.

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