The global ammunition market size was estimated at USD 11.74 billion in 2015 and is expected to witness significant growth over the next eight years on account of growing security concerns resulted by the rise in terrorist organizations and activities. In the recent years, arms race has been witnessed among nations including China, India and Pakistan which is further expected to propel the market demand.
Ammunition industry is categorized into product segment that mainly include bullets, mortars, rockets. End-users in this market include civil and defense. Unfavorable geopolitical conditions coupled with increasing tension across borders is leading to the increased stacking of weapons and ammunitions.
According to the recent stats published by Stockholm International Peace Research Institute (SIPRI) the U.S., China Saudi Arabia and Russia were the major countries having maximum expenditure on weapons and ammunition. The U.S. accounted for 36% of the global expenditure on weapons, followed by China with a share of 13%.
Global ammunition market revenue, by end-use, 2013-2024 (USD Million)
Ammunition industry trends include the increase in demand for hunting & sports activities. The U.S. is one of the largest exporters of arms and ammunition in the world. The U.S. arms & ammunition industry is a commercialized sector and a key element in the U.S. economy. The U.S. ranks first when it comes to research & development, innovation, and manufacturing of arms and ammunition.
Bullets were estimated as the largest product segment in 2015 accounting for 53.9% of the global market. This segment mainly comprises of small caliber bullets that are used in civil end-uses.
Civil end-use consumes various firearms including revolvers, pistols, shotguns, and rifles. Rise in private end-users for personal security, in emerging economies has boosted the market demand. Others products such as rockets and mortars are preferred in the defense and military sector. Rise in terrorism is the key factor for increasing procurement of ammunition globally.
Civil was the most prominent segment in 2015 and accounted for 74.5% of the global revenue share. This segment is expected to witness significant growth owing to high expected growth from hunting & sports activities over the forecast period. Civil segment includes law enforcement, self-defense and sports & hunting.
Outdoor recreational activity is a huge business in North America, especially in the U.S. A recent survey conducted by the U.S. Fish and Wildlife Services; Americans spend around USD 50 billion on sports and hunting. All these factors contribute to the overall growth of the industry.
Asia Pacific dominated the global ammunition industry in 2015 and is projected to continue its domination by 2024, growing at a CAGR of 4.5% over the forecast period. Rising terrorist activities in the region, especially in countries such as India is leading towards strengthening the overall defense system of the country. In March 2016, India signed a contract worth USD 15 billion to buy rockets and other ammunition.
U.S. ammunition market revenue, by product, 2013-2024 (USD Million)
The U.S. regional market was valued at over USD 1.5 billion in 2015. Europe was estimated as the second largest market in 2015. Manufacturing of small arms and ammunition is a major industry in Europe owing to which it has retained its position as the key exporter in the world. Major countries in Europe include France, Russia Germany and UK.
Competitive Market Share Insights
The global ammunition industry has continuously witnessed merger and acquisitions by the major players to ensure competitiveness and profitability and establish a strong foothold in the market.
The market is fragmented in nature with a large number of market players present in North America and Europe.
Key players in this market include General Dynamics Corporation, BAE Systems, Remington Arms Company, Inc., Ruag Ammotec, Poongsan Corporation, Federal Premium Ammunition and Maxam. In 2012, BAE systems partnered with General Dynamics Ordnance and tactical systems to manufacture 81mm Roll Controlled Guided Mortar (RCGM).
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