Ammunition Market Size, Share & Trends Analysis Report By Product (Bullets, Mortars, Rockets), By End Use (Civil (Law Enforcement, Self-defense, Sports & Hunting), Defense), And Segment Forecasts, 2018 - 2024

Industry Insights

The global ammunition market size was estimated at USD 11.74 billion in 2015 and is projected to grow at a CAGR of 3.5% over the forecast period. Growth in the market is attributed to rise in defense expenditures on account of growing safety concerns as a result of rising terrorist activities globally.

To combat terrorism and related activities, governments of various countries have started spending on anti-terror initiatives. Unfavorable geopolitical conditions coupled with increasing tension across borders is resulting in anti-terror spending, which includes purchase of arms and ammunition, advancement in technology and intelligence, and strengthening of armed forces. Advancement and upgrade of products are other market growth drivers.

Ammunition mainly consists of bullets, rockets, and mortars. All these ammos have different technologies, raw materials, and manufacturing patterns. Modern bullets possess many different features. Some of these features are related to shape, material used, and bullet size. Ongoing economic development in Asia has led to an arms race among emerging economies. This has provided business opportunities for many defense companies. Countries such as China, India, Pakistan, and South Korea are building up military capabilities to ensure law and order and to protect international borders.

The industry consists of several small and medium companies, making it difficult for any single manufacturer to grab a large market share. The industry is also becoming more concentrated and dispersed, simultaneously. Market participants are involved in mergers and acquisitions and joint ventures on a large scale. Demand for ammunition is restrained by reduced defense expenditure by developed countries. While developing economies are increasing their military expenditure, developed economies such as U.S. and Germany are reducing their military expenditure. U.S., one of the largest exporters of arms and ammunition in the world, has been reducing its military expenditures since 2010.

The North Atlantic Treaty Organization (NATO) has reduced its troops and expenditure on arms and ammunitions. In addition, most of its allies have also reduced their troops. Germany reduced its military strength by 1,80,000 in 2013 while U.K. has reduced its army to 1,74,000 troops. Such factors are expected to slightly affect growth of the ammunition market over the forecast period.

Product Insights

Bullets was estimated as the largest product segment in 2015. The rocket segment contributed to 15.5% of the ammunition demand in the same year. Growth of the bullet segment is mainly attributed to rising civil end uses for personal security in the form of various fire arms such as pistols, revolvers, rifles, and shotguns.

Large number of citizens in U.S. own a gun as the licensing process is quite easier compared to that in other parts of the world. This majorly contributes to the increased consumption of ammunition in the civil sector.

End-use Insights

Civil was estimated as the largest end-use segment in 2015, accounting for 74.5% revenue share of the market for ammunition. This segment is further divided into law enforcement, sports and hunting, and self-defense.

The segment is driven by overall rise in demand from sports and hunting. Sports and hunting is gaining popularity, particularly in Europe and North America. Apart from threat from various terrorist organizations, internal security is also being challenged in Asia, and Middle East and Africa. This is expected to provide major fillip to the growth of self-defense segment over the forecast period.

Regional Insights

In North America, the market for ammunition was led by U.S. The country has presence of the highest number of product manufacturers. Bullet segment accounted for the highest market share in North America in 2015. It is projected to remain the largest by 2024.

In Europe, the market is led by Russia, U.K., Germany, and France. Manufacturing of small arms ammunition is a major industry in Europe, which is expected to retain its position as a leading exporter. Europe is dominated by Russia, which contributed to a market share of 31.9% in 2015.

Asia Pacific was estimated as the largest market for ammunition, accounting for 32.9% of global market share in 2015. Growing threat of terrorism coupled with arms race among emerging economies such as China, India, and Pakistan is expected to promote from law enforcement to prevent cross-border terrorism. Furthermore, surge in sports and hunting activities is expected to be a crucial factor for regional market expansion.

Ammunition Market Share Insights

Since 2012, the market has witnessed strong growth owing to political uncertainties coupled with rising terrorist activities. Owing to high demand, the market is slowly moving towards consolidation as large players are acquiring smaller players.

Key players in this market include Ruag Ammotec; Poongsan Corporation; BAE Systems; General Dynamics Corporation; Remington Arms Company, Inc.; Maxam; and Federal Premium Ammunition. In October 2016, Federal Premium Ammunition launched a new product called American Eagle target series. These new products include 20 round boxes of 300 blackouts, 6.5 Grendel and 6.5 Creedmoor. This product offers enhanced accuracy performance in high-volume shooting.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global ammunition market report on the basis of product, end use, and region:

• Product Outlook (Revenue, USD Million, 2013 - 2024)

  • Bullets

  • Mortars

  • Rockets

  • Others

• End-use Outlook (Revenue, USD Million, 2013 - 2024)

  • Civil

    • Law Enforcement

    • Sports and Hunting

    • Self-defense

  • Defense

• Regional Outlook (Revenue, USD Million, 2013 - 2024)

  • North America

    • U.S.

  • Europe

    • Russia

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

    • Cuba

  • Middle East & Africa

    • Saudi Arabia

    • Israel