The global arms and ammunition market was valued at $60.9 billion in 2021 and it is expected to reach $240.2 billion at a CAGR of 11.7% between 2022 and 2032. The ammunition market will likely experience significant growth over the projected period as a result of an increase in terrorist attacks and wars around the world. This would likely result in the more powerful military around the world purchasing defensive equipment.
The U.S. government's substantial expenditures for military and armed forces improvements are anticipated to assist the country's market expansion. The purchase of small-caliber ammunition by civilians and the department of homeland security is anticipated to support the expansion of the market as a whole. Additionally, the improvement of sales channels like online sales in the nation is probably going to supplement the expansion. It is anticipated that growth in the use of cutting-edge materials in the manufacture of lightweight ammunition will result in more fuel-efficient transportation, which will lower the cost of transportation as a whole.
Source: SAI Research
Companies and military organizations are eager to innovate and create environmentally friendly munitions today. The U.S. Army has been involved in the creation and development of biodegradable bullets with an emphasis on reducing soil pollution to safeguard the ecosystem. As a result, many businesses and governmental organizations are concentrating on minimizing lead by employing ammunition with polymer cases. The weight and price of ammunition for guns are also reduced as a result.
The demand for high-tech weapons, sometimes known as smart guns, has skyrocketed in the arms and ammunition sector. There are several cutting-edge features, such as an approved firing system that uses RFID sensors or biometric readings to allow the proper use of the firepower, as well as numerous embedded smart locking mechanisms that stop accidental firing or shooting. Additionally, it is anticipated that the Arms & Ammunition market will continue to be extremely competitive and fragmented, with a mix of small start-ups, medium-sized businesses, and massive conglomerates. Therefore, these rising factors would accelerate the market growth over the forecast period.
The acquisition of next-generation ammunition and related equipment has increased national defense capacities in response to the growing threat posed by terrorist activities, global political upheaval, and geopolitical conflicts in Asian and Middle Eastern nations. Worldwide military spending, particularly in the U.S., has greatly increased, as have contracts for the procurement of more munitions. Growing defense spending in developing nations to strengthen their militaries bodes well for this sector. Furthermore, in India, potential gun owners must demonstrate their training and must store their weapons in gun lockers while they are knocked down. Key players' contracts and procurement procedures are impacted internationally by these severe firearms prohibitions.
Based on product type, the bullet segment accounted for the largest share of this market and is also anticipated to boost the market growth over the forecast period. Globally, there has been a growing focus in recent years on upgrading both the land and air force inventories for a variety of reasons, including air force uses and geopolitical issues. For instance, the US is still developing the F-35 combat aircraft. In contrast, the Indian air force is seeking multi-role aircraft to bolster its armed forces; as a result, the purchase of new aircraft will raise the demand for associated ammunition in the years to come. The category is also anticipated to experience the quickest growth throughout the projected period due to the rising demand from security forces to deal with the increase in violent conflicts.
In terms of end-user type, the defense category has the largest share of this market. Furthermore, it is anticipated that this market would continue to lead during the forecast period. The global market for bullets has expanded as a result of an increase in international hostilities. In addition, increased geopolitical unrest and terrorist activities are predicted to boost the product penetration. Throughout the predicted period, this would boost the category.
Geographically, the North American region holds most of the market share and is also projected to hold its dominant position over the forecast period from 2022 to 2032. It is anticipated that lax gun laws and the increased terrorist threat will encourage the consumption of bullets. The rise in hunting and sporting activities is also anticipated to be a key element in expansion. Due to the large demand from the United States, the North American bullets market is anticipated to expand significantly. One of the main causes of the US DoD's increased spending on arming its armed forces with improved weapons is the evolving nature of warfare. To assure dependable functioning and determine the degree of performance improvement with a new integrated design update, weapons are put through rigorous testing. On the other side, the Asia-Pacific region is also expected to become the second-largest market in the future. The Asia Pacific nations, led by China, India, Pakistan, South Korea, and North Korea, devote a substantial budget for defense and law enforcement training. Additionally, escalating instances of interpersonal conflict, asymmetrical conflict, terrorism, and domestic violence, as well as increased economic growth and advancement in the manufacturing sector, actively support market enforcement.
According to the study, key players such as BAE Systems (U.K), CCI (India), Denel SOC (South Africa), Defense Command (Denmark), Elbit Systems (Israel), General Dynamics Corp (U.S), Giat Industries (France), Global Ordnance (U.S), Hanwha Group (South Korea), Magtech Company (India), Northtrob Grumman (U.S), Ruag Ammotec (Germany), Timasek Holdings (Singapore), Vista Outdoor (U.S), among others are leading the global arms and ammunition market.
|Market Size in 2021||US$ 60.9 Billion|
|Market Volume Projection by 2032||US$ 240.2 Billion|
|Forecast Period 2022 to 2032 CAGR||11.7%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Product Type: Bullets, Ariel Bombs, Grenades, Artillery Shells, Mortals & Others
By End-User Type: Civil and Commercial, Defense & Other
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||BAE Systems (U.K), CCI (India), Denel SOC (South Africa), Defense Command (Denmark), Elbit Systems (Israel), General Dynamics Corp (U.S), Giat Industries (France), Global Ordnance (U.S), Hanwha Group (South Korea), Magtech Company (India), Northtrob Grumman (U.S), Ruag Ammotec (Germany), Timasek Holdings (Singapore), Vista Outdoor (U.S), among others.|
The Global Arms and Ammunition Market – by Product Type:
The Global Arms and Ammunition Market – by End-User Type:
The Global Arms and Ammunition Market – by Regions: