Global Ammunition Market Growth Forecasted to Reach USD 3.9 Billion by 2028 Amid Geopolitical Tensions and AI Influence
The Global Ammunition Market is poised to experience significant growth in the coming years, with Technavio estimating a substantial increase of USD 3.9 billion from 2024 to 2028. The market is projected to grow at a CAGR of 3.21% during this forecast period. The surge in market growth can be attributed to the prevalence of geopolitical conflicts, political tensions, and cross-border issues, driving a trend towards growing asymmetric warfare worldwide.
Key Market Players
Key players in the global ammunition market include industry giants such as Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. De C.V., KNDS N.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Northrop Grumman Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poongsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc.
Market Drivers
The rise of asymmetric warfare, characterized by significant differences in military capabilities and strategies between opposing forces, has become prevalent in global conflicts. Guerrilla warfare, a form of asymmetric warfare, is employed by militant groups utilizing surprise attacks, ambushes, and terrorist tactics. This trend has led to an increased demand for advanced imaging systems and ammunition to support night combat strategies. Militaries across the globe are modernizing their infantry weapons, leading to heightened competition among ammunition manufacturers.
The demand for newer generation ammunition by armed forces and militaries worldwide is another key driver for market growth. Factors such as penetrating power and accuracy are crucial in driving this trend, with training ammunition also in high demand for peacekeeping missions and military personnel training. Companies like Rheinmetall and General Dynamics are at the forefront of the market, offering innovative solutions such as polymer-cased ammunition and advanced calibers to meet the evolving needs of armed forces.
Market Challenges
Despite the promising growth trajectory, the global ammunition market faces significant challenges due to the proliferation of illicit ammunition manufacturers. The United Nations Office of Disarmament Affairs reports that over 80% of ammunition trade remains outside of reliable export data, posing a threat to global security. Illegally manufactured ammunition is often used in terrorist activities, impacting the demand for branded ammunition. The rise of illicit ammunition manufacturers is expected to negatively impact the growth of the global ammunition market in the coming years.
Market Segmentation
The ammunition market can be segmented based on product, application, and geography:
Small Caliber: This sector of the ammunition market plays a significant role in the global defense industry, with companies manufacturing and supplying various types of ammunition to military forces and law enforcement agencies. Key players in this segment include Rheinmetall, Nammo, and BAE Systems.
Medium Caliber:
Large Caliber:
Defense Application:
Civil and Commercial Application:
Geography: The ammunition market spans across regions including North America, APAC, Europe, Middle East and Africa, and South America.
Conclusion
The global ammunition market is poised for robust growth in the coming years, driven by factors such as geopolitical tensions, military modernization, and the demand for newer generation ammunition. Key players in the market are innovating to meet the evolving needs of armed forces and law enforcement agencies worldwide. However, challenges such as the proliferation of illicit ammunition manufacturers pose a threat to market growth. As the market continues to evolve, companies will need to adapt to changing regulatory landscapes and market dynamics to stay competitive and meet the demands of a rapidly evolving global security environment.
