Ammunition Market Innovations in Technology and Product Development

 The global ammunition market, valued at USD 68.57 billion in 2023, is projected to decline to USD 36.75 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of -11.3% from 2024 to 2030.

Increased procurement of defense equipment by global militaries—driven by a rise in terrorist activities and hostilities—is expected to positively impact the industry over the forecast period.

Simultaneously, the rising popularity of sports and shooting activities involving rifles and pistols is anticipated to boost the penetration of small-caliber ammunition. Technological advancements, such as the introduction of lightweight bullets made from polymer-based cases, also support overall industry development.

In the U.S., high government investments in the enhancement of military and armed forces are expected to support market growth. Furthermore, the procurement of small caliber ammunition by civilians and the Department of Homeland Security (DHS), along with the enhancement of sales channels (like online sales), is likely to bolster the overall industry in the country.

 

Key Market Trends & Insights

  • The ammunition market in Europe held a dominant revenue share of 71.33% in 2023. In Europe, the government provides directives for firearm possession, the supply of firearms in a single market, and a protocol against manufacturing and trafficking of firearms. In addition, the European defense system has faced challenges in dealing with refugees from the Middle East and Syria. Europe has also faced the threat of terrorism.
  • By caliber, the small caliber ammunition segment held about 28.12% share of the global revenue in 2023. This trend is attributed to a wide array of small caliber ammunition applications including shotgun pistols, assault rifles, rifles, and revolvers. In addition, increasing demand from security forces to tackle rising instances of armed conflicts is further expected to fuel the growth of small caliber ammunition demand over the period.
  • By small ammunition product, the centerfire small ammunition products segment led the market in 2023 with a revenue share of 71.12%. Centerfire ammunition is usually used for rifles, shotguns, and handguns. In centerfire ammunition, primer is placed in the center of the casing base. This type of ammunition is reloadable and, hence, is the most commonly used cartridge type.
  • By cartridge, the .45 cartridge segment held the highest revenue share in 2023. The popularity of .45 ACP handguns among law enforcement agencies, military forces, and civilian gun enthusiasts is driving the market. The rise in civilian gun ownership and the increasing trend of concealed carry are fueling the demand for .45 ACP cartridges.

 

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

 

Market Size & Forecast

  • 2023 Market Size: USD 68.57 Billion
  • 2030 Projected Market Size: USD 36.75 Billion
  • CAGR (2024-2030): -11.3%
  • Europe: Largest market in 2023

 

Key Companies & Market Share Insights

Some of the key players operating in the market include Northrop Grumman and General Dynamics Corporation. Emerging market participants include Jageman Stamping Co. and Hornady Manufacturing Company, Inc.

  • Northrop Grumman is a multinational aerospace and defense technology company specializing in products for the aeronautics, space, cyberspace, and defense industries, with approximately 100,000 employees and 550 facilities globally.
  • General Dynamics Corporation is headquartered in Virginia, U.S., and operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies, offering services like MRO and aircraft management across various regions.
  • Jageman Stamping Co. is a U.S.-based producer of progressive, deep-drawn, and fine blanked stampings for multiple industries, including automotive and defense.
  • Hornady Manufacturing Company, Inc. is a U.S.-based manufacturer of bullets, ammunition, and muzzleloading equipment, serving both domestic and international markets.

 

Key Players

  • 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

 

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

 

Conclusion

Despite drivers like increasing global hostilities, rising civilian interest in shooting sports, and technological advancements such as lightweight, polymer-cased ammunition, the global ammunition market is forecasted to experience a significant contraction. The market size is projected to almost halve, from USD 68.57 billion in 2023 to USD 36.75 billion by 2030, resulting in a negative CAGR of -11.3%. Europe remains the dominant regional market. The market’s decline suggests that, despite localized and segment-specific growth factors (like the small caliber and .45 cartridge segments), overarching geopolitical stability, regulatory factors, or a shift in major defense procurement strategies may be exerting a powerful downward pressure on the total market value during the forecast period.

Comments

Post a Comment

Popular posts from this blog

The Future of Trash Bags: Market Projections and Innovations

  The global trash bags market size was estimated at   USD 12.04 billion   in 2023 and is expected to grow at a CAGR of 6.1% from 2024 to 2030. The market is experiencing a significant shift toward sustainable and biodegradable materials, driven by increasing environmental awareness, stringent regulations, and consumer demand for eco-friendly solutions. Growing awareness of plastic pollution and its detrimental effects on ecosystems has led to stricter regulations and policies globally. Governments and organizations are implementing bans on single-use plastics and promoting biodegradable alternatives. Gather more insights about the market drivers, restraints and growth of the  Trash Bags Market the European Union's Single-Use Plastics Directive aims to reduce plastic waste and encourages the use of biodegradable materials in products like trash bags. There's a marked shift in consumer behaviour, with a preference for products that are sustainable and have a lower env...
Read more

Returnable Packaging Market Is Expected To Grow Due To Increasing Demand For Sustainable And Durable Packaging Products

  Returnable Packaging Industry Overview   The global returnable packaging market size was valued at USD 98.55 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028.   Increasing demand for sustainable and durable packaging products from various end-use industries is expected to fuel the growth of the market. Returnable or reusable packaging products are made of durable materials, such as wood, plastic, and metal. They are designed to withstand rough handling throughout the supply chain and are intended for multiple trips. The initial investment for such products is considerably high as compared to expendable packaging, however, with increasing trips, lower cost per trip can be achieved, which ensures a rapid return on investment.   Gather more insights about the market drivers, restrains and growth of the   Global Returnable Packaging Market   The U.S. market is expected to witness significant growth ov...
Read more

Printing Inks Market Report Helps To Analyse Demand Across Various Sectors

  Printing Inks Industry Overview The global printing inks market size was valued at USD 19.2 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 2.8% from 2021 to 2028. The market is expected to witness moderate growth over the forecast period. Factors such as the growing end-use industry, including flexible packaging, commercial printing & publishing, packaging labels, have majorly driven this market. The superior properties of the constituents such as pigments, binders, solubilizers, and additives to produce text, design, or images along with rising demand from the packaging sector, commercial printing, and changing consumer preference, these solutions are expected to have unceasing demand in the future. Gather more insights about the market drivers, restrains and growth of the  Printing Inks Market The global printing inks market is heading toward major consolidations to increase efficiency, support growth, and achieve more leverage with ...
Read more