Ammunition Market Growing at the Fastest Rate in North America Region

The report "Ammunition Market by Application (Defense, Civil & Commercial), Caliber (Small, Medium, Large), Product (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars), Component, Guidance, Lethality (Lethal, Less-lethal), Region - Global Forecast to 2025",The global ammunition market size is projected to grow from USD 20.8 billion in 2020 to USD 24.9 billion by 2025, at a CAGR of 3.6% from 2020 to 2025. Factors such as the changing nature of warfare, the militarization of police forces, the increasing incidence of drug trafficking, and terrorist activities, the modernization of armed forces and rising military budgets are driving factors assisting the growth of the ammunition market. Apart from its use in defense forces, ammunition also sees increasing importance in civil and commercial applications such as sporting, hunting, and self-defense, among others.

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COVID-19 has affected the ammunition market growth to some extent, and this varies from country to country. Although the manufacturing of ammunition for military applications is of prime importance, disruptions in the supply chain have set back their manufacturing for the time being. Resuming the manufacturing and demand for ammunition depends on the level of COVID-19 exposure a country is facing, the level at which manufacturing operations are running, and import-export regulations, among other factors. Industry experts believe that the pandemic has not severly affected the demand for ammunition in defense applications. It is estimated that ongoing contracts for the delivery of ammunitions would continue with negligible reduction for military and law enforcement applications. However, due to continuous lockdown and social distancing measures, there has been a decrease in the demand for ammunition in civil and commercial applications. Hence, the commercial applications have significantly been affected due to the ongoing lockdown activities and social distancing measures being followed, decreasing the demand for sporting and hunting activities. As a result,hunting and sporting activities (which are a major driving factor for civil and commercial applications) have been reduced significantly.

Increasing spending on the modernization of armed forces is driving the growth of the defense applications

The defense segment of the ammunition market has been classified into military and homeland security. Rising incidences of armed intranational and international conflicts have driven a number of countries to enhance their military strengths through the procurement of advanced ammunition and equipment. Modernization is currently being undertaken across most emerging economies of the world, including Russia, China, Turkey, India, and Saudi Arabia. As a result of this, defense expenditure for ammunition procurement and R&D activities has increased significantly across the globe over the past few years. These countries are spending significantly on military modernization programs to enhance and upgrade their surveillance capabilities and improve their firepower assets in terms of range, precision, mobility, and lethality, with range and precision being the main criteria for ammunition procurements. These modernization activities are one of the most important drivers for small caliber ammunition and firearms demand. Increasing training expenditure by major economies, as well as emerging economies, is also increasing small ammunition consumption.

Based on caliber, the small caliber segment of the ammunition market is projected to witness the highest CAGR during the forecast period

Based on caliber, the ammunition market has been segmented into small, medium, large, and others. The small caliber segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to increased use of small caliber ammunition by military and homeland security personnel, owing to less lethality of this ammunition. Moreover, open online marketplaces for small arms and ammunition and increased procurement of small caliber ammunition by the defense and homeland security sectors to curb rising instances of armed conflicts are also contributing to the growth of this segment.

Based on lithality, the lethal segment of the ammunition market is projected to witness the highest CAGR during the forecast period

Based on lethality, the ammunition market has been classified into lethal and less-lithal. Lethal ammunition is developed to cause maximum damage to targets. These are used primarily by soldiers, federal agents, and law enforcement officers. The market for lethal ammunition has witnessed significant growth over the last few decades due to increasing defense expenditure of countries and rising social unrest across the globe.
Aerial bombs segment of the ammunition market is projected to witness highest CAGR owing to increasing focus on upgrading of air force inventory by armed forces

Based on products, the ammunition market has been segmented into bullets, aerial bombs, grenades, artillery shells, and mortars. The aerial bombs segment is projected to grow at the highest CAGR. In recent years, an increasing focus has been observed to upgrade air force inventory across the globe due to multiple reasons such as geopolitical tensions and air force applications. For instance, the US has ongoing F-35 fighter aircraft programs. Whereas the Indian air force is looking for multi-role aircraft to strengthen their armed forces, and hence new aircraft procurements will lead to an increased demand for related ammunition in the coming years. Hanwha Corporation (South Korea) and General Dynamics Corporation (US) manufacture aerial bombs for applications.

The North America market is projected to contribute the largest share from 2020 to 2025

The ammunition market in the North American region has been studied for the US and Canada. Major factors that are expected to drive the growth of the market in the region include rising instances of terrorism, which have led to increased use of ammunition by armed forces and a growing number of drug cartels in Central America

North American countries are awarding a number of contracts to major players of the ammunition market for the delivery of ammunition, thus driving the growth of the ammunition market in the region. For instance, In July 2020, Northrop Grumman Corporation secured a contract from the US Army to deliver the next-generation airburst cartridge for the 30mm XM813 Bushmaster Chain Gun. The Bushmaster Chain Gun will be installed on the Stryker Infantry Carrier Vehicle (ICV). Also, the company has secured a contract worth USD 93 million from the US Army for the manufacture of multipurpose munition technology for destroying targets such as lightly armored infantry fighting vehicles. The munitions are expected to be compatible with the M4A1 rifle.

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The ammunition market is dominated by a few globally established players such as Northrop Grumman Corporation (US), CBC Global Ammunition (Brazil), BAE Systems (UK), Thales Group (France), and General Dynamics Corporation (US), RUAG Group (RUAG Ammotec) (Switzerland),among others.

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This release was published on openPR.