Press release
NATO Ammunition Market Size, Status and Business Outlook 2021-2025
Global NATO Ammunition market gives essential information, objective insights regarding Global market top key players analysis, and much more. The report provides detailed information on segmentation which covers product type, various components, end-user or applications, and various regions. The report deals with the most driving forces influencing the market’s revenue scale. The report delivers a comprehensive analysis of key segments, recent trends, major drivers, growth constraints, competitive landscape during this market. The impact of the COVID-19, and also forecasts its recovery post-COVID-19. The report also presents forecasts for NATO Ammunition investments from 2021 to 2025.The NATO ammunition market is anticipated to grow at a CAGR of more than 5% during the forecast period.
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Market Overview: -
- Owing to the perceived threat of a military standoff from Russia, the NATO countries are aiming to enhance their defense expenditure to modernize their defense capabilities.
- Furthermore, the ongoing deployment pattern of NATO forces in different countries across the globe as part of their peacekeeping missions has necessitated the procurement of advanced weaponry and associated ammunition.
- However, the COVID-19 pandemic has had a deleterious effect on the economy of the NATO countries, hence some pipeline programs are liable to be deferred during the forecast period, thereby restricting the growth of the market.
Competitive Landscape: -
The NATO ammunition market is highly competitive and is marked with the presence of many prominent players, such as Olin Corporation, RUAG Group, BAE Systems plc, Rheinmetall AG, and Nexter Group competing for a larger market share.
Key Market Trends: -
Enhanced Defense Spending Closely Linked to New Procurement Contracts
Several NATO countries are now focusing on augmenting their military firepower and defensive capabilities, in the wake of the growing threats from other nations and the increasing deployment of NATO forces to fight insurgent groups in various countries in the world. On the other hand, there is continuous pressure from the US on other NATO countries to increase military spending by at least 2% of their GDP. In this regard, these countries are increasing their military spending, to facilitate the strengthening of their military arsenal. The growth in defense budgets will support the nations to enhance their combat capabilities and help the NATO countries execute their individual and collective defense strategies as planned. According to SIPRI, the total military spending by all NATO member states in 2019 (excluding North Macedonia that joined in 2020) was USD 1035 billion. Out of this, military spending by the United States alone was as much as USD 732 billion in 2019 while the military spending of Germany grew considerably by about 10% in 2019, to USD 49.3 billion. Bulgarias military spending increased by 127% while Romanias military spending increased by 17%. Poland is also increasing its military spending and the country pledged to increase its military spending to 2.5% of its GDP by 2030. Bolstered by the increasing defense spending, the militaries of the NATO countries are continuously changing, aimed at transforming themselves into more capable, modern, and technologically advanced forces, for which they are procuring various weapon systems and associated ammunition aimed at enhancing their defensive prowess.
The US to Dominate the Market During the Forecast Period
In 2019, the US accounted for the largest market share due to its gigantic defense spending which is multifold compared to other NATO countries. The US defense expenditure witnessed a 5.3% YoY growth to account for USD 732 billion in 2019. For FY2021, the requested US defense budget of USD 704.6 billion is aimed at improving the military readiness and invest modernization of its armed forces. On this note, in January 2020, Olin Corporation was awarded a USD 75.7 million contract modification to produce small-caliber ammunition, comprising 5.56mm, 7.62mm, and .50 caliber. The contract is scheduled for completion by May 2021. Also, in March 2020, the US Department of Defense (DoD) awarded a USD 119 million contract to FN Herstal for around 167,000 units of M4 and M4A1 carbines by 2025. The induction of new rifles is expected to generate a parallel demand for compatible 5.56mm ammunition used by the M4 family of assault rifles. The procurement plans are not limited to small-caliber ammunition and several other weapon procurement plans are also underway, thereby creating huge growth opportunities for the market in focus in the US. For instance, in March 2020, the US Army awarded a USD 339 million contract to BAE Systems for the production of 48 vehicle sets of M109A7 Self-propelled Howitzer (SPH) and its companion, the M992A3 Carrier, Ammunition, Tracked (CAT) vehicle and includes post-delivery support and spare parts.
Significant Features that are under Offering and Key Highlights of the Reports:
– Detailed overview of NATO Ammunition Market
– Changing market dynamics of the industry
– In-depth market segmentation by Type, Application, etc.
– Historical, Current, and projected market size in terms of volume and value
– Recent industry trends and developments
– Competitive landscape of NATO Ammunition Market
– Strategies of key players and product offerings
– Potential and niche segments/regions exhibiting promising growth
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MarketInsightsReports provides syndicated market research on industry verticals including Healthcare, Information and Communication Technology (ICT), Technology and Media, Chemicals, Materials, Energy, Heavy Industry, etc. MarketInsightsReports provides global and Chinese and regional market intelligence coverage, a 360-degree market view which includes statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations.
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