Ammunition Market Growth & Trends
The global ammunition market size is expected to reach USD 36.75 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to decline at a CAGR of -5.6% from 2023 to 2030. Increasing investments in defense equipment by militaries on account of the rise in geopolitical tension across the globe are anticipated to drive the demand for ammunition in the estimated time. Increasing procurement of artillery and mortar platforms by the Indian Army over the next ten years through several development platforms is expected to raise the number of ammunition over the forecast period. Additionally, the rise in hostilities is expected to ascend the demand for ammunition in the Middle Eastern countries in the projected time frame.
Technological innovations for the replacement of brass-based bullet cases using polymer-based bullet cases are expected to offer growth prospects to the market. The application of polymer materials in bullets reduces the ammunition weight by over 40%, wherein the impact of the same is unaffected, thereby making the ammunition lighter and more accurate when compared to conventional bullets. Rising geopolitical issues, warlike situations, and increasing terrorist activities across the globe are leading to the rise in stockpiling of ammunition by prominent militaries and armed forces. This strategy is likely to offer cost savings as the ammunition is purchased in high volume at cheap prices. This is anticipated to support the market growth in the estimated time.
Hunting in the European Union has led to an accumulation legacy of lead discharged from spent ammunition. This lead exhibits harmful toxic effects on the wildlife, environment, and humans who consume the hunted game meat. Thus, non-toxic lead substitutes for both shotgun and rifle ammunition have been developed and required in some jurisdictions of the European Union. In the European Union, more than 25 companies manufacture or distribute lead-free shotgun ammunition and further 14 companies distribute lead-free rifle ammunition. However, the wide transition in terms of using lead-free ammunition has been resisted by ammunition-making and hunting communities in the region.
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Ammunition Market Report
Ammunition Market Report Highlights
- By caliber, small caliber emerged as the second largest segment in 2022 majorly due to a wide range of applications including assault rifles, handguns, and pistons
- Based on product, the centerfire segment accounted for the largest revenue share in 2022 and is projected to witness the fastest growth over the forecast period as it is defined as a universal standard in most of the defense forces across the globe
- On the basis of end use, the defense segment emerged as the largest segment in 2022 majorly due to rising ammunition procurement by homeland security forces
- The industry in Asia Pacific is expected to register an exponential CAGR of 3.8% over the forecast period, primarily due to the upgrading of defense forces across countries such as China, India, Australia, and Singapore
- The U.S. led the North American market in 2022 and is expected to grow substantially during the forecast years, mainly due to rising defense expenditure in the economy, coupled with intensive training activities conducted by the country’s defense forces
