The global ammunition market size is projected to reach USD 29.96 billion by 2027. The surging popularity of 9mm cartridges is anticipated to affect growth positively. In October 2015, for instance, the FBI declared that it would replace .40 S&W with 9mm pistols for its agents. This is because the latter helps in faster follow-up and accurate shots because of its low recoil. This information is published by Fortune Business Insights™ in a report, titled, “Ammunition Market Size, Share & COVID-19 Impact Analysis; by Application (Military & Homeland Security, and Civil & Commercial) By Caliber (Small, Medium, and Large) By Product (Bullets, Aerial Bombs, Grenades, Mortars, Artillery Shells, and Others), By Component (Fuses& Primers, Gun Powder, Projectile, Cases, and Others) By Guidance (Guided, and Non-Guided) By Lethality (Lethal, and Less-Lethal) and Regional Forecast, 2020-2027.” As per the research report, the ammunition market stood at USD 25.46 billion in 2019. It is set to exhibit a CAGR of 1.71% during the forecast period.
COVID-19 Pandemic: Increasing Insecurity among People Drives Sales of Guns
The COVID-19 pandemic has created insecurity amongst people and therefore, people in the U.S. started purchasing ammunition and guns rapidly in March 2020. As per Lucky Gunner, an online provider of shooting accessories and ammo, the sales of 9mm cartridges increased by 500% because of this pandemic. But, some of the countries also banned the sales of guns. We are offering in-depth research reports to help you select the right strategy for your business.
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List of the Leading Companies Profiled in the Global Ammunition Market are:
- BAE Systems (The U.K)
- CBC Global Ammunition (Brazil)
- Denel SOC Ltd (South Africa)
- General Dynamics Corporation (The U.S.)
- Nammo AS (Norway)
- Nexter group KNDS (France)
- Northrop Grumman Corporation (The U.S.)
- Olin Corporation (The U.S.)
- Poongsan Corporation (South Korea)
- RAUG Group (Switzerland)
- Thales Group (France)
- Vista Outdoor, Inc. (The U.S.)
The research report offers a comprehensive analysis of pre-existing companies that can affect the outlook of the ammunition industry throughout the forthcoming years. Besides, it provides an accurate assessment by highlighting information on several aspects that may include growth drivers, opportunities, trends, and hindrances. It also represents the market size from a global perspective by analyzing qualitative insights and historical data.
Drivers & Restraints:
Rising Prevalence of Mass Shootings and Political Unrest to Accelerate Growth
The rising cases of mass shootings and terrorist activities have resulted in the higher adoption of small caliber ammunition by civilians for their personal safety. Also, the increasing number of shooting ranges worldwide is set to bolster the ammunition market growth in the upcoming years.
Besides, in Asia Pacific and the Middle East, cross-border conflicts, political unrest, and geopolitical tensions are surging at a fast pace. Hence, small, medium, and large-caliber ammos are gaining more popularity among military forces in these countries.
However, governments of various countries across the globe are implementing stringent norms on the usage of firearms, which, in turn, may hinder growth.
North America to Lead Stoked by R&D Activities for Developing Unique Ammos for Army
Geographically, North America earned USD 13.76 billion in terms of revenue in 2019 and is set to dominate the market throughout the forthcoming years. This growth is attributable to the increasing research and development activities to unveil state-of-the-art ammunition, especially for the U.S. Army. Also, the COVID-19 pandemic has led to surging demand for guns.
According to the National Instant Criminal Background Check System (NICS) of the FBI, in February 2020, a surge of over 30% was observed in the procurement of long guns and handguns.
Asia Pacific, on the other hand, is expected to grow significantly fueled by the rising defense expenditure and expansion of military forces in China, India, Japan, and South Korea. Europe would showcase considerable growth on account of the rising adoption of projectiles and guns in developed nations, such as the U.K., Italy, Germany, and Russia.
Military & Homeland Security Segment Procured 65% in 2019: Fortune Business Insights™
Based on the caliber, the market for ammunition market research is segregated into small, medium, and large. By lethality, it is bifurcated into lethal and less lethal. Based on guidance, it is segmented into guided and non-guided.
By components, it is fragmented into fuzes & primers, gunpowder, case, projectiles and warheads, and others.
Based on the product, it is categorized into bullets, aerial bombs, grenades, mortars, artillery shells, and others. Lastly, by applications, it is divided into military & homeland security and civil & commercial. Out of these, the military & homeland security segment generated 65% in terms of the ammunition market share in 2019. The rising number of military modernization programs, cross-border conflicts, and political unrest would drive this segment’s growth.
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:- SWOT Analysis – A detailed analysis of the company’s strengths, weakness, opportunities and threats.
:- Company history – Progression of key events associated with the company.
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:- Detailed financial ratios for the past five years – The latest financial ratios derived from the annual financial statements published by the company with 5 years history.
Key Players Aim to Win New Contracts and Develop Lightweight Guns to Compete in Market
The global market for ammunition houses several reputed companies that are presently striving to gain a competitive edge through the development of multipurpose munitions and lightweight lethal ammo. A few others are focusing on bagging new contracts from government bodies to provide them with novel products.
Below are the two latest industry developments:
- April 2021: True Velocity joined hands with Lonestar Future Weapons and General Dynamics to place a bid on a new contract called Next Generation Squad Weapons. It is set to replace automatic assault weapons with more reliable and lighter weapons used in combat by Army soldiers.
- April 2021: The U.S. Army provided a new contract worth USD 37 million to Winchester for delivering .50-cal, 7.62 mm, and 5.56 mm ammunition. It would help the company to solidify its position and meet the high demand from law enforcement.
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