Transparency Market Research has identified six players who currently lead the global ammunition market. They are Nammo A.S., Hornady Manufacturing Company, Inc., Fiocchi Munizioni S.p.A., General Dynamics Corporation, Orbital ATK, Inc., and RUAG Holding A.G.
The report observes that these leading players believe in both organic growth as well as acquisitions. In September 2015, Nammo A.S. expanded business in Poland with establishment of Nammo Polska, targeting overall growth with co-operation from the Polish Armed Forces and the defense industry. In July 2015, Alliant Techsystems, Inc. and Orbital Sciences Corporation merged to form Orbital ATK, Inc. Similarly in January 2015, RUAG Ammotec, a subsidiary of RUAG Holding A.G., acquired hunting and sporting trading company Glaser Handels AG to strengthen and expand its business in Europe by having its own wholesaler.
The global market for ammunition was valued at US$11.48 bn in 2014. Estimated to grow at a CAGR of 3.7% during the forecast period of 2015 to 2021, reaching a market size of US$14.87 mn by 2021.
FMJ Ammunition Segment Growing Steadily
In terms of revenue, full metal jacketed (FMJ) and tracer ammunition accounted for US$5.44 bn and US$1.67 bn in 2014 respectively. FMJ ammunition segment has been growing at a steady pace. Moreover, rising economic activities and demand for commercial ammunition across the world are expected to boost the market in the near future. Demand for small caliber ammunition is expected to remain high over the forecast period of 2015–2019. Changing military requirements and advanced ammunition are expected to drive the global ammunition market significantly.
Geographically, Europe lead the global ammunition market, accounting for US$3.97 bn in 2014. Following Europe was the North America ammunition market while Asia Pacific and Rest of the World (RoW) are estimated to grow substantially over the forecast period. The growing economy, high disposable income, and GDP gains are driving the growth in Asia Pacific. In India and China, the demand for artillery ammunition and small caliber ammunition are expected to remain high. As a result, the market in Asia Pacific is expected to reach a valuation of US$ 3.25 bn by 2021.
Terror-related Incidences Driving the Demand
With increasing threats from terrorist organizations globally, there is a growing need to equip armed forces with enhanced and adequate ammunition. Also, various unfavorable geopolitical conflicts among nations are also boosting the market for ammunitions worldwide. Additionally, the growing economies in Asia Pacific, Middle East and Africa are strengthening and modernizing their militaries through procurement and development of technologically advanced arms and ammunition. The other factor positively influencing the global market for ammunition is the growing export from Russia to APAC countries such as India, South Korea, Pakistan, Syria, and Myanmar.
Conversely, two factors that are expected to negatively impact the market are demilitarization initiatives adopted in Europe and North America and impact of international and national laws on ammunition industry. All these favorable and restraining factors are analyzed in detail in the report.
According to the author of the report, “With the increased demand for advanced ammunition and growing initiatives for military modernization, defense contractors and ammunition manufacturers are adopting new technologies for development of ammunitions. As a result, smart ammunitions are growing in demand.” The author also expect heavy metal free ammunitions to offer new opportunities during the forecast period.
The information presented in this review is based on a Transparency Market Research report, titled, “Ammunition Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021.”
Key Segments of the Global Ammunition Market
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
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