Global Ammunition Market: Snapshot
Concerns over terrorism are escalating in several regions across the world and especially in Europe. Terrorist disturbances are growing in count and government bodies are doing what they can to curb it. This includes increasing expenditure on ammunitions of all types and calibers. Countries such as South Korea, Indian, China, and Pakistan are also increasing their spending on ammunition due to disturbances created by neighboring countries.
A related event is the growing pace of the arms race in countries from the Middle East and Africa, and Asia Pacific. Several countries from these regions are strengthening their troop count as well as modernizing their military equipment. This growing arms race is creating a very high demand for ammunitions, further driving its global market.
However, the U.S. and several European countries are on their way to steadily demilitarizing themselves, a move which started after the Iraq and Afghanistan wars. The demilitarization, coupled with the recent economic meltdown, have caused North America and Europe to lose share values in the global ammunition market.
The resultant effect of all the above factors and more can be seen in a predicted CAGR for the market’s revenue, which is 3.7% from 2015 to 2021. By the end of 2021, the revenue is expected to reach US$14.87 bn.
APAC and MEA Demand for Ammunitions Increases Rapidly
Although North America and Europe currently hold leading shares in the market value for ammunitions, their growth rate is expected reduce over the coming years due to substantial reductions in overall demand. At the same time, the demand for ammunitions is expected to increase rapidly in Asia Pacific and the MEA region. By the end of 2021, the share of ammunitions revenue held by Europe will be 31.78%.
At the moment, most of the demand for ammunitions in Europe is coming from the strengthening of national defense forces to combat the rising waves of terrorism. Both North America and Europe are currently focusing more on the replacement and refurbishment of older weapons and ammunitions, creating a moderate demand for new ammo. The current largest market for ammunitions lies in Russia, a country which is expected to maintain its leading position till 2021.
Military Demand for Ammunition Keeps Player Revenues at Steady Growth Rate
By the end of 2021, the revenue share in the ammunitions market held by the military sector is expected to be 57.14%. The military receives significant financial aid and interest from the national governments, which allows the military to create a consistent level of research and development efforts in making efficient, precise, and tougher rounds. The military sectors is currently showing a high demand in all types of bullets and in all calibers. Law enforcement and civil sales of ammunition are primarily done in small caliber rounds. The sale of commercial ammunitions, meanwhile, is reducing in developed economies and is increasing in the emerging ones, primarily as a source of self-defense.
The leading manufacturers of ammunition from a global perspective include Fiocchi Munizioni S.p.A., General Dynamics Corporation, Hornady Manufacturing Company, Inc., Orbital ATK, Inc., Nammo A.S., and RUAG Holding A.G.
Procuring and developing enhanced weaponry and ammunition has become highly competitive these days. Considered as a way to ensure the security of a nation from foreign forces, arms and ammunition currently form a big part of any country’s annual spending. Rising concerns in the form of unfavorable geopolitical disputes and threats from terrorists are also significantly leading to the increased demand for a variety of weapons and ammunition on the global front.Transparency Market Research’s report on the global ammunition market gives a 360-degree overview of the market and its crucial elements, from a global as well as regional perspective. The report presents estimates and forecast regarding the overall growth prospects of different product and application segments on the basis of a regional and global analysis over the period between 2015 and 2021.
The report also presents a detailed overview of the projected impact of some of the key drivers, restraints, and trends in the market. The report includes valuable qualitative and quantitative data pertaining to the key market elements. The data compiled in the report provide relevant market insights aimed to assist effective decision-making.
The data in the report is gathered with the help of numerous primary as well as secondary research methodologies, and filtered, to succinctly present before the reader only the details that matter the most, with the help of several industry-best analytical methods.
Global Ammunition Market: Overview
The report attributes the growth of the market to the changing law enforcement and military requirements, and continuous research and development activities in the field of arms and ammunition for the flourishing growth of the market in the past few years. The rising popularity of shooting-related sports is also driving the demand for a variety of ammunition in the global market.
The report states that the market, which had a valuation of US$11.48 bn in 2014, will expand at a 3.7% CAGR between 2015 and 2021, and reach US$14.87 bn by 2021.
The report segments the global ammunition market on the basis of four criteria: ammunition type, caliber, application, and geography.
On the basis of type, the market is segmented into full metal jacketed, incendiary, armor piercing, tracer, and other ammunition varieties. On the basis of caliber, the market is segmented into small caliber, medium caliber, artillery, mortar, and shotgun. On the basis of application, the market is segmented into military, commercial, and law enforcement. Regionally, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW).
Of the variety of calibers of ammunition examined in the report, the segment of small caliber ammunition has observed a significant rise in demand in the past few years. On the basis of application, the market is dominated by the military segment. However, the overall demand for ammunition has also significantly increased in the commercial and law enforcement sectors.
Global Ammunition Market – Key Players
Some of the major companies operating in the global ammunition market are Orbital ATK, Inc., General Dynamics Corporation, Nammo A.S., Fiocchi Munizioni S.p.A., Hornady Manufacturing Company, Inc., Companhia Brasileira de Cartuchos, Rheinmetall Defence, RUAG Holding A.G., Prvi Partizan A.D, and Nexter Group.
Global Ammunition Market, 2015 – 2021: By Type
- Full Metal Jacketed (FMJ) Ammunition
- Tracer Ammunition
- Incendiary Ammunition
- Armor Piercing Ammunition
- Other Ammunition
Global Ammunition Market, 2015 – 2021: By Caliber
- Small Caliber Ammunition
- Medium Caliber Ammunition
- Mortar Ammunition
- Artillery Ammunition
- Shotgun Shells
Global Ammunition Market, 2015 – 2021: By Application
- Law Enforcement
Global Ammunition Market, 2015 – 2021: By Geography
- North America
- Rest of Europe
- Asia Pacific (APAC)
- South Korea
- Rest of APAC
- Rest of the World (RoW)
- Saudi Arabia
- South Africa
- Rest of RoW
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments