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The Global Ammunition Market Anticipated to Generate a Revenue of $19,882.4 Million, Growing at a CAGR of 3.7% from 2021 to 2028

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The global ammunition market is projected to be valued at $19,882.4 million by 2028, surging from $15,077.5 million in 2020, at a noteworthy CAGR of 3.7%

Analysis of COVID-19 Impact on the Ammunition market

The Covid-19 impact on ammunition market industry has been moderate. The restrain in the global industrial production due to imposed lockdowns across the globe has disturbed supply chain of defense equipment’s manufacturing industry, hindering the growth of ammunition market. The major companies in this sector such as Sierra Bullets, Hornady Manufacturing, and others have experienced a reduction in demand in the ammunition market. These factors are expected to moderately impact the market growth.

However, the companies operating in the production of ammunition are adopting strategies such as acquisition and partnerships to gain major market share during the pandemic period. Such factors are predicted to positively impact the global ammunition market. For instance, in February 2020, US based ammunition manufacturer, Vista Outdoor Inc., announced for the acquisition of firearms manufacturer and holding company, Remington Outdoor Co. Inc.'s ammunition and accessories businesses for $81.4 million. These factors are expected to positively impact the market growth and increase the ammunition market size.

Global Ammunition Market Analysis

The growing expenditure for procurement of arms and ammunition for security operations across the world by the armed forces homeland security agencies across the world is expected to aid the growth of ammunition market. For instance, as per the "Stockholm International Peace Research Institute (SIPRI)" an independent international organization for research into conflict, armaments, and disarmament, headquartered in Stockholm, Sweden, the defense expenditure of countries such as USA, China, India, Russia, and others has led the world military expenditure to increase around 2.1 trillion in 2020. This data reflects the increased expenditure on arms and ammunition aiding the growth of the ammunition market. These factors are expected to contribute in the growth of global ammunition market size

The high initial capital requirement for the setup of ammunition production facility along with the requirement of highly skilled workforce with majority of its manufacturers in the developed countries can act as barriers in the transfer of technology in the developing and underdeveloped regions, which can hamper the growth of the global ammunition market share.

The development of light weight ammunition is anticipated to open new scope of opportunities for ammunition market. The light ammunition that are lighter in weight as compared to the conventional heavy bullets can be carried more in quantity in situations like war or counter terrorism operations. The lightweight ammunition does not compromise on the impact and accuracy of the ammunition. For instance, in April 2021, German defense firm, Rheinmetall AG, and US based defense solutions provider, Northrop Grumman, agreed for a strategic partnership for precision-guided enhanced range artillery ammunition. These factors are expected to open new scope of opportunities for ammunition market.

Global Ammunition Market, Segmentation

The global ammunition market is segmented based on product, application, caliber, and region.


The product segment is further classified in to centerfire and rimfire. Among these, centerfire sub-segment is expected to have the largest market share and surpass $12,738.6 million by 2028, with an increase from $9,797.8 million in 2020.

The centerfire ammunition is more deployed in rifles, shotguns, and handguns as equated to the rimfire; the main benefit of centerfire is that it is larger, more powerful cartridges. In addition to this, the centerfire bullets are reloadable and can be used again.

In recent developments, for instance, in January 2021, US based ammunition manufacturing firm, Federal Premium, launched “Terminal Ascent line” of centerfire rifle and component bullets. These new developments are expected to positively impact the growth of centerfire sub-segment.


The application segment is further classified into defense and civil & commercial. Among these, civil & commercial sub-segment is anticipated to be the fastest growing sub-segment in the forecast period and surpass $6,313.2 million by 2028, with an increase from $4,546.6 million in 2020.

The growing demand of ammunition in the nonmilitary and defense sectors such as hunting and sports for world sports events such as shooting is expected to aid the growth of civil & commercial sub-segment in the forecast period. 


The caliber segment is further divided into small, medium, large, and others. The small caliber sub-segment is projected to have a dominating market share in the global market and register a revenue of $7,821.4 million during the forecast timeframe of 2021-2028. The small caliber bullets (9mm to 15 mm) are largely used by the military and police forces globally for small scale operations, aiding the growth of this sub-segment. In major developments, for instance, in January 2020, Israel based defense manufacturing firm, Elbit Systems Ltd., signed a contract "Production and Procurement Directorate" of the Israeli Ministry of Defense (IMOD), valued at approximately $144 million for the supply of small caliber ammunition to the Israeli Defense Forces. These factors are expected to aid the growth of this sub-segment.


The ammunition market for the Asia-Pacific region generated a revenue of $4,405.7million in 2020 and is further projected to reach up to $5,991.8 million by 2028. The presence of countries which are most affected by terrorist activities in the region such as Afghanistan, Pakistan, India, and others is expected to aid the growth of ammunition market in the forecast period. As per the "Global Terrorism Index" 2020 report published by the "Institute for Economics and Peace”, a global think tank headquartered in Sydney, Australia, the economic impact of terrorism in Asia-Pacific region was around $1,663.83 million in 2019. This shows the need for adoption of counter terrorism measures in the Asia-Pacific region, surging the need for ammunition by defense forces in the region. These factors are expected to aid the growth of ammunition market in the region.

Key Players in the Global Ammunition Market

Some of the leading global ammunition market players are

  1. Elbit Systems Ltd.
  2. General Dynamics Corporation
  3. BAE Systems.
  4. Thales Group
  5. Sierra Bullets
  6. Hornady Manufacturing
  7. Nexter KNDS group
  8. Rheinmetall AG
  9. Vista Outdoor Inc
  10. Ammo, Inc.

Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.

Porter’s Five Forces Analysis for the Global Ammunition Market:

  • Bargaining Power of Suppliers: There are moderate number of suppliers in the ammunition market. Across the world there are different organizations working in the field of ammunition for manufacturing products such as aerial bombs and mortars to get a competitive edge in the market.
    Thus, the bargaining power suppliers is moderate.
  • Bargaining Power of Buyers: The buyers in market have high bargaining power, therefore the suppliers in the ammunition market focus on providing superior quality services in a cost-effective manner.
    Thus, the bargaining power of the buyers is high.
  • Threat of New Entrants: The companies entering in the ammunition market emphasize on innovation for reducing the cost of production. The capital requirement in ammunition market is high. 
    Thus, the threat of the new entrants is low.
  • Threat of Substitutes: The ammunition process is essential and currently there is no alternative of ammunition measures.
    Thus, the threat of substitutes is low.
  • Competitive Rivalry in the Market: There is a highly competitive rivalry between companies in the ammunition market. including BAE Systems. and Thales Group.
    Therefore, competitive rivalry in the market is high.
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