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Ammunition Market To Grow At 3.2% CAGR By 2030, Due To Increasing Investments In Defense Equipment By Militaries and Rise In Worldwide Geopolitical Tension | Grand View Research, Inc.

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Ammunition Market To Grow At 3.2% CAGR By 2030, Due To Increasing Investments In Defense Equipment By Militaries and Rise In Worldwide Geopolitical Tension | Grand View Research, Inc.

June 09
07:44 2022
Ammunition Market To Grow At 3.2% CAGR By 2030, Due To Increasing Investments In Defense Equipment By Militaries and Rise In Worldwide Geopolitical Tension | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to a new report published by Grand View Research, 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.

Ammunition Industry Overview

The global ammunition market size was valued at USD 22.35 billion in 2021 and is expected to reach USD 29.68 billion by 2030, registering a CAGR of 3.2% over the forecast period. A rise in the number of terrorist activities and hostilities across the globe is likely to increase the procurement of defense equipment by prominent militaries across the globe, which will further drive the market for ammunition over the forecast period. Rising trends for sports and shooting that utilize rifles and pistols are expected to increase the penetration of small-caliber ammunition in the projected time. Moreover, technological advancements in the market have introduced lightweight bullets made from polymer-based cases and thus are projected to support the market growth.

High investments by the U.S. government for enhancements in military and armed forces are expected to support the market growth in the country. The procurement of small caliber ammunition by civilians and the homeland security department is expected to bolster the overall market growth. Moreover, enhancement of sales channels such as online sales in the country is likely to supplement the growth. A rise in the adoption of advanced materials for the production of lightweight ammunition is expected to lead to fuel-efficient transportation, which, in turn, reduces the overall transportation cost. Furthermore, the above-mentioned trend is anticipated to enable transportation of more rounds within the same weight limits, thereby positively impacting the market growth.

 

Gather more insights about the market drivers, restrains and growth of the Global Ammunition market

Commercially, these ammunition products are not widely available on account of the restrictions on weapons in major economies. However, defense organizations in major territories have agreed on the procurement of these products to enhance security capabilities. Moreover, enhancements in the military by major economies like China, India, France, and Russia are expected to support the market growth in the estimated time. The market globally is characterized by collaborations and acquisitions between major players and the government for the long term. Several governments across the globe, especially India, are aiming to enhance their defense forces through procurement and development of indigenous production facilities from foreign players.

 

U.S. Ammunition Market size, by caliber, 2020 - 2030 (USD Billion)

 

Ammunition Market Segmentation

Based on the Caliber Insights, the market is segmented into Small Caliber, Medium Caliber, Large Caliber, Rockets, Missiles, and Other.

  • The small caliber segment led the market and accounted for over 50.0% share of the global revenue in 2021. This trend is attributed to a wide array of small-caliber ammunition applications including shotgun pistols, assault rifles, rifles, and revolvers.
  • The medium caliber segment includes high-performance 20 mm, 25 mm, 30 mm, and 40 mm cartridges for a broad range of applications including land, sea, and air with the capability to penetrate light armor, material, and personnel target.

 

Based on the End-use Insights, the market is segmented into Civil & Commercial, and Defense.

  • The defense end-use segment led the market and accounted for over 75.0% share of the global revenue in 2021. In addition, this segment is expected to maintain its lead over the forecast period. Increasing cross-border conflicts have fueled the growth of the bullets market across the globe.
  • The semi-jacketed hollow-point bullets, known for their controlled penetration and high stopping power, can create a larger than average wound cavity and ensure effective results in a single shot. This bullet thus is typically used for self-defense, pistol target shooting, and backyard shooting.

 

Based on the Product Insights, the market is segmented into Rimfire, and Centerfire.

  • The centerfire segment led the market and accounted for over 65.0% share of the global revenue in 2021. Centerfire ammunition is usually used for rifles, shotguns, and handguns. In centerfire ammunition, the primer is placed in the center of the casing base.
  • The rimfire segment is expected to register a CAGR of 3.1% in the forecast period owing to the increasing demand from shooters in light of the limited recoil offered by the product. Rimfire bullets are preferred by beginners as they offer limited recoil when they are being used.

 

Based on the Ammunition Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

  • North America dominated the market and accounted for over 30.0% share of the global revenue in 2021. The growing threat from terrorism, coupled with lenient gun laws, is expected to promote the consumption of bullets. Furthermore, the surge in sports and hunting activities is expected to be a crucial factor for expansion.
  • In Europe, the directives are provided by the government for possession of firearms, the supply of firearms in a single market, and a protocol against the manufacturing and trafficking of firearms. In addition, the European defense system has faced challenges in dealing with refugees from the Middle East and Syria.

 

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Market Share Insights:

  • July 2021: Lockheed Martin Missile and Fire Control, a division of Lockheed Martin Corporation, was awarded a USD 160 million modification (P00032) contract (W31P4Q-19-C-0101) to produce High Mobility Artillery Rocket Systems M142 launchers and support requirements.
  • July 2020: the Nexter KNDS Group received a contract from the French Army for the supply of 70,000 modular artillery loads for use on the CAESAR system. The CAESAR system is a 155mm artillery system being used by the French Army. All the modules under this assignment will be manufactured at the Eurenco Bergerac site and delivered between 2021 and 2022 to the French Army.

 

Key Companies Profile:

Key companies generate a majority of their revenues through military and government channels. Their primary customers include the U.S. Department of Defense and intelligence community. Moreover, they deliver products to U.S. government customers including the Department of Homeland Security.

Some prominent players in the global ammunition market include:

  • 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
  • Vista Outdoor Operations LLC

 

Order a free sample PDF of the Ammunition Market Intelligence Study, published by Grand View Research. About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Web: https://www.grandviewresearch.com

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