Ammunition Market Size Projected to Generate a Revenue of $31,717.4 Million by 2031Download Sample Reports Overview
The Global Ammunition Market is predicted to be valued at $31,717.4 million by 2031, surging from $21,980 million in 2021, at a noteworthy CAGR of 3.9%.
Impact Analysis of COVID-19 on the Ammunition Market
The COVID-19 pandemic had various impacts on the global economy, and the ammunition market was no exception. On the one hand, there has been a surge in demand for firearms and ammunition due to concerns about personal safety and security during the pandemic. With many people staying at home and avoiding public gatherings, there has been a decrease in hunting and shooting sports activities. This has led to a decrease in demand for certain types of ammunition used for these purposes. The pandemic also disrupted the global supply chain, leading to shortages of raw materials and components used in the production of ammunition. This resulted in increased prices and longer wait times for consumers looking to purchase ammunition. Furthermore, social distancing measures and lockdowns led to the closure of shooting ranges and other recreational facilities, which impacted the demand for ammunition used in shooting sports. One significant factor contributing to the surge in demand for firearms and ammunition during the pandemic was the increase in civil unrest and political uncertainty around the world. Many people have felt the need to protect themselves and their families during this time, leading to increased sales of firearms and ammunition. This demand has been driven by several factors, including concerns about personal safety and security, civil unrest, and fears of potential restrictions on gun ownership.
Global Ammunition Market Analysis
The popularity of ammunition can be attributed to technological advancements. The development of new technologies, such as smart ammunition, has a significant impact on the market. Smart ammunition incorporates electronic components that can be programmed to control the flight path and impact of the bullet. This technology allows for increased accuracy and precision, which is particularly important in military and law enforcement applications. In addition to smart ammunition, other technological advancements in the ammunition industry include the development of new materials and manufacturing techniques. For example, the use of composite materials can improve the strength and durability of ammunition, while 3D printing technology allows for more efficient and customizable production. These are the major factors anticipated to boost the ammunition market share during the analysis timeframe.
However, the production, sale, and transportation of ammunition require specific licenses and permits, which can be difficult and time-consuming to obtain. In many cases, the process of obtaining these licenses involves extensive background checks, which can further delay the process. In addition, some countries restrict the sale of ammunition to certain individuals or organizations, such as law enforcement agencies and military organizations. This can limit the potential customer base for ammunition manufacturers and distributors. Moreover, the import and export of ammunition are subject to strict regulations, which can limit the ability of companies to expand their business across international borders. Ammunition requires strict safety regulations for storage, handling, and transportation. These regulations can be complex and expensive to comply with, which can further limit the growth of the market.
The growing global population and the rising incidents of armed conflicts and terrorist activities are expected to drive the demand for ammunition in the coming years. Moreover, the increasing adoption of firearms for self-defense and recreational purposes is also likely to contribute to the growth of the ammunition market. Additionally, the modernization of military and law enforcement agencies, particularly in emerging economies, is expected to create lucrative opportunities for ammunition manufacturers. Moreover, the growing popularity of shooting sports and hunting activities in developed economies is also expected to drive the demand for ammunition. Additionally, the rise of e-commerce and online sales channels have made it easier for consumers to purchase ammunition, which has further increased the market's accessibility. The increasing demand for ammunition, driven by factors such as global conflicts, modernization of defense and law enforcement agencies, technological advancements, and growing popularity of shooting sports and hunting activities, presents significant opportunities for ammunition manufacturers.
Global Ammunition Market, Segmentation
The global ammunition market is segmented based on product type, caliber size, application, and region.
The product type segment is further classified into centrefire and rimfire. Among these, the centrefire sub-segment accounted for the largest market share in 2021. Centrefire cartridges are used in a wide range of firearms, including rifles, handguns, and shotguns. This versatility indicates that centrefire cartridges are in high demand from a diverse range of customers, including hunters, sport shooters, law enforcement agencies, and the military. Centrefire cartridges are generally more powerful and accurate than their rimfire counterparts, which makes them suitable for long-range shooting and precision targeting. This has led to an increased demand for centrefire cartridges in shooting competitions and other events where accuracy is key. The centrefire segment is an important driver of the ammunition market due to its versatility, accuracy, and continual innovation.
The caliber size segment is further classified into small, medium, large, and others. Among these, the small sub-segment accounted for the largest market share in 2021. The popularity of firearms, particularly handguns and rifles, can heavily influence the demand for ammunition in specific caliber sizes. In addition, the preferences and needs of hunters, sport shooters, and military and law enforcement agencies also play a significant role in driving demand for specific caliber sizes of ammunition. Small caliber ammunition is typically used in handguns and rifles that are designed for close quarters combat or concealed carrying. Additionally, advancements in ammunition technology have enabled manufacturers to produce small caliber rounds that offer improved accuracy, reduced recoil, and increased stopping power. This has further boosted the demand for small caliber ammunition.
The application segment is further classified into defense and civil & commercial. Among these, the defense sub-segment accounted for the largest market share in 2021. With the growing number of conflicts and security threats around the world, countries are investing heavily in their defense capabilities, which includes the procurement of ammunition. Ammunition is necessary for defense forces to maintain operational readiness and to fulfill their missions effectively. The demand for ammunition in the defense sector is driven by several factors such as geopolitical tensions, military modernization programs, and global terrorism. As countries around the world continue to invest in their defense capabilities, the demand for ammunition is expected to increase. Moreover, advancements in technology have led to the development of new and advanced ammunition types that are more efficient, accurate, and lethal. These advancements have further driven the demand for ammunition in the defense sector.
The ammunition market in the Asia-Pacific region accounted for the largest market share in 2021. The Asia-Pacific region has seen a growing interest in hunting and shooting sports, which has led to an increase in the demand for ammunition for these activities. The Asia-Pacific region is home to several emerging economies such as China and India, which are investing heavily in research and development of advanced technologies. This has led to the development of new and advanced ammunition technologies, which are driving the growth of the ammunition market in the region. The demand for small arms ammunition is growing rapidly in the Asia-Pacific region due to the rising instances of terrorism and insurgency. This has led to an increase in demand for small arms ammunition such as pistols, rifles, and machine guns. The Asia-Pacific region ammunition market is expected to grow due to the increasing defense spending, modernization of military equipment, and rising demand for hunting and shooting sports.
Key Players in the Global Ammunition Market
Some of the leading ammunition market players are
- Northrop Grumman Corporation
- FN Herstal
- Olin Corporation
- General Dynamics Corporation
- BAE Systems Inc.
- Rheinmetall Defense
- Nexter KNDS Group
- Hanwha Corporation
- ST Engineering
- Remington Arms Company LLC
In May 2022, in order to grow, Rheinmetall AG announced that it will provide the Spanish armed forces with ammunition systems and 40mm weaponry for four years. The provision of high velocity, high explosive, dual purpose, and training ammunition for the 40mm x 53 calibre is required per the contract. For usage by the army and navy, these are utilised in the Mk 19 and SB-40 LAG grenade machine guns, which have a 240 m/s velocity and a 2200 m range.