Ammunition Market Size, Share & Trends Analysis Report By Caliber (Small Caliber, Medium Caliber, Large Caliber, Rockets, Missiles & Other), By Product (Rimfire, Centerfire), By End Use, And Segment Forecasts, 2022 - 2030

Report Overview

The global ammunition market size was valued at USD 22.35 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 3.2% from 2022 to 2030. A rise in the number of terrorist activities and hostilities across the globe is likely to increase the procurement of defense equipment by prominent militaries across the globe, which will further drive the market for ammunition over the forecast period. Rising trends for sports and shooting that utilize rifles and pistols are expected to increase the penetration of small-caliber ammunition in the projected time. Moreover, technological advancements in the market have introduced lightweight bullets made from polymer-based cases and thus are projected to support the market growth.

High investments by the U.S. government for enhancements in military and armed forces are expected to support the market growth in the country. The procurement of small caliber ammunition by civilians and the homeland security department is expected to bolster the overall market growth. Moreover, enhancement of sales channels such as online sales in the country is likely to supplement the growth. A rise in the adoption of advanced materials for the production of lightweight ammunition is expected to lead to fuel-efficient transportation, which, in turn, reduces the overall transportation cost. Furthermore, the above-mentioned trend is anticipated to enable transportation of more rounds within the same weight limits, thereby positively impacting the market growth.

Commercially, these ammunition products are not widely available on account of the restrictions on weapons in major economies. However, defense organizations in major territories have agreed on the procurement of these products to enhance security capabilities. Moreover, enhancements in the military by major economies like China, India, France, and Russia are expected to support the market growth in the estimated time. The market globally is characterized by collaborations and acquisitions between major players and the government for the long term. Several governments across the globe, especially India, are aiming to enhance their defense forces through procurement and development of indigenous production facilities from foreign players.

Caliber Insights

The small caliber segment led the market and accounted for over 50.0% share of the global revenue in 2021. This trend is attributed to a wide array of small-caliber ammunition applications including shotgun pistols, assault rifles, rifles, and revolvers. Additionally, the segment is likely to witness the fastest growth over the forecast period on account of the increasing demand from security forces to tackle the rising number of instances of armed conflicts. Increasing procurement of medium caliber ammunition by the U.S. Army and its alliances such as air, land, and sea are expected to ascend the market growth in the estimated time. Moreover, the enhancements in medium caliber ammunition to penetrate light armor materials are likely to offer growth opportunities to the market.

The medium caliber segment includes high-performance 20 mm, 25 mm, 30 mm, and 40 mm cartridges for a broad range of applications including land, sea, and air with the capability to penetrate light armor, material, and personnel target. The increasing application of guns and rifles by prominent militaries across the globe is anticipated to ascend the demand for medium-caliber ammunition. Large caliber ammunition can be classified into spin-stabilized, fin-stabilized, and rocket-assisted, which is a combination of spin-stabilized and fin-stabilized. A majority of the guns use the spin-stabilized large-caliber cartridge as it promotes flight stability using spinning, whereas fin-stabilized projectiles obtain stability through the fins located at the end of the projectile.

End-use Insights

The defense end-use segment led the market and accounted for over 75.0% share of the global revenue in 2021. In addition, this segment is expected to maintain its lead over the forecast period. Increasing cross-border conflicts have fueled the growth of the bullets market across the globe. Moreover, rising geopolitical tension and terrorist activities are expected to increase the penetration of products. Full metal jacket bullets are used in military handguns on a large scale, whereas the air force tends to use hollow-point bullets for greater accuracy. Hollow-point bullets are popular for use among law enforcement and military personnel due to their rapid expansion property and excellent stopping power.

The semi-jacketed hollow-point bullets, known for their controlled penetration and high stopping power, can create a larger than average wound cavity and ensure effective results in a single shot. This bullet thus is typically used for self-defense, pistol target shooting, and backyard shooting. The rise in the procurement of enhanced products is likely to offer growth opportunities. With the advancements in technology, a bullet capable of turning, changing its speed, and sending data is being developed by countries including Russia and the U.S. It allows soldiers to stay in a protective cover and shoot around corners. Technological developments by the players are expected to aid the market growth.

Product Insights

The centerfire segment led the market and accounted for over 65.0% share of the global revenue in 2021. Centerfire ammunition is usually used for rifles, shotguns, and handguns. In centerfire ammunition, the primer is placed in the center of the casing base. This type of ammunition is reloadable and hence is the most common type of cartridge used. Centerfire ammunition is employed as a universal standard in military, police, and security forces owing to its potential to allow high pressure and the ability to reuse the casings. These cartridges are preferred for military operations owing to their thicker metal casing that can withstand rough handling without high damage.

The rimfire segment is expected to register a CAGR of 3.1% in the forecast period owing to the increasing demand from shooters in light of the limited recoil offered by the product. Rimfire bullets are preferred by beginners as they offer limited recoil when they are being used. Moreover, they are cheaper as their thin casting with a flattened primer is easy to manufacture. Although rimfire ammunition is a comparatively cheaper alternative, it is limited to small calibers. This can be attributed to the fact that the nature of the bullet casing is required to be thin enough to crush and ignite the primer, which is difficult to accomplish in medium and large calibers. This type of ammunition is commonly used for .22LR.

Regional Insights

North America dominated the market and accounted for over 30.0% share of the global revenue in 2021. The growing threat from terrorism, coupled with lenient gun laws, is expected to promote the consumption of bullets. Furthermore, the surge in sports and hunting activities is expected to be a crucial factor for expansion. The North American bullets market is expected to witness significant growth owing to high demand from the U.S. The defense budget in North America has increased, which is significantly influencing the bullets market in the region. The long-term competitive strategy of the U.S. Department of Defense for the development of technologies and new concepts of warfare is expected to aid the market growth.

In Europe, the directives are provided by the government for possession of firearms, the supply of firearms in a single market, and a protocol against the 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 a threat of terrorism and owing to this, the market for ammunition in Europe is expected to strengthen over the forecast period. Rising geopolitical disputes and the increasing threat of terrorist attacks are the primary reasons for the growth of the defense industries in the Asia Pacific. Countries like China and India are spending on the modernization of their armed forces to battle against violence. These countries procure ammunition for the armed forces and law enforcement agencies to minimize the rising crime rate. These factors are expected to drive the market demand over the forecast period.

Key Companies & Market Share Insights

Key companies generate a majority of their revenues through military and government channels. Their primary customers include the U.S. Department of Defense and intelligence community. Moreover, they deliver products to U.S. government customers including the Department of Homeland Security. These players are also involved in teaming and sub-contracting relationships with their competitors. Competition for major defense programs often requires teams to collaborate their broad capabilities to cater to customer requirements. Opportunities associated with these programs include roles as the provider of sub-system or component and programs integrator. Some prominent players in the global ammunition market include:

• 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

Ammunition Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global ammunition market report on the basis of caliber, product, end use, and region:

• Caliber Outlook (Revenue, USD Million, 2017 - 2030)

  • Small Caliber

    • 5.56 mm

    • 7.62 mm

      • 7.62 x 51 mm

      • 7.62 x 39 mm

      • Others

    • 9 mm

      • 9 x 18 mm

      • 9 x 19 mm

      • Others

  • Medium Caliber

    • 23 mm

    • 30 mm

    • Others

  • Large Caliber

    • VSHORAD

    • 122 mm

    • Others

  • Rockets, Missiles, and Other

    • Tank Ammunition

    • Artillery Ammunition

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Rimfire

  • Centerfire

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Civil & Commercial

    • Sports

    • Hunting

    • Self Defense

  • Defense

    • Military

    • Law Enforcement

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  •  Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Russia

    • Turkey

    • Czech Republic

    • Poland

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Singapore

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE