Ammunition Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Ammunition Market

• The annual demand for ammunition was USD 28.1 billion in 2024 and is expected to reach USD 29.25 billion in 2025, up 4.1% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the ammunition market is expected to grow at a CAGR of 7.3%. The annual demand will reach of USD 38.06 billion in 2032.
• During 2025-2032, the ammunition industry is expected to generate a cumulative sales opportunity of USD 268.43 billion.

High-Growth Market Segments:

• Asia-Pacific is expected to be the largest and fastest-growing region of the ammunition market over the forecasted period.
• By Application Type, Defense segment accounted for the largest share of the ammunition market.
• By Caliber type, Small-Caliber Ammunition segment is expected to be the fastest-growing segment during the forecast period.
• By Product type, Bullets segment is expected to be the fastest-growing segment during the forecast period.
• By Component type, Projectiles & Warheads segment accounted for the largest share of the ammunition market.

Market Statistics

Have a look at the sales opportunities presented by the ammunition market in terms of growth and market forecast.

Market Dynamics

Introduction:

What is ammunition?

Ammunition refers to the complete set of materials designed to be fired, launched, or detonated from weapons, including projectiles (bullets, shells), propellants, primers, and explosives. It is used to produce destructive, signalling, or training effects in military, law enforcement, and civilian applications.

Market Drivers:

Rising Geopolitical Tensions and Cross-Border Conflicts

• Rising geopolitical tensions and cross-border conflicts are significantly increasing global defense expenditures. Nations facing territorial disputes or security threats are stockpiling ammunition to maintain readiness.
• For example, the Russia-Ukraine war (ongoing since 2022) and the Israel-Hamas conflict in Gaza (2023-2024) have led to substantial increases in munitions procurement. This sustained demand for small arms, artillery shells, and advanced munitions is fueling consistent growth in the global ammunition market.

Market Challenges:

Stringent Regulatory and Export Controls

• Governments worldwide impose strict regulations on ammunition production, sales, and exports to ensure public safety and control arms proliferation. Compliance with varying regional laws and international treaties often complicates manufacturing and cross-border trade, limiting market expansion and increasing operational costs.

Market Opportunities:

Reduction in Ammunition Weight

• The reduction in ammunition weight presents a significant growth opportunity as militaries seek to enhance soldier mobility and reduce combat fatigue. Lightweight ammunition allows troops to carry more rounds without increasing load, improving operational efficiency in the field. This shift also supports next-generation weapon systems focused on agility and rapid deployment, driving market demand.

Segment Analysis

By Type 

“Defense segment accounted for the largest share of the ammunition market.”

• The ammunition market is segmented by application type into defense and civil & commercial.
• Defense segment accounted for the largest share of the ammunition market, due to rising global military expenditures, modernization programs, and increasing demand for advanced munitions.
• Geopolitical tensions and territorial disputes further drive continuous procurement to maintain military readiness and capability.

By Product Type 

“Bullets segment is expected to be the fastest-growing segment during the forecast period.”

• The ammunition market is segmented by product type into bullets, aerial bombs, grenades, artillery shells, and mortars.
• Bullets segment is expected to be the fastest-growing segment during the forecast period, due to rising demand from both defense and civilian sectors. Increased military training, modernization of armed forces, and expanding law enforcement needs are driving procurement.
• Additionally, growing civilian firearm ownership for personal security and recreational shooting contributes to higher bullet consumption.

Regional Analysis

“Asia-Pacific is expected to be the dominant and the fastest-growing region over the forecasted period.”

• In terms of region, the ammunition market is segmented into the North American region, the European region, the Asia-Pacific region, and the rest of the world.
• Asia-Pacific is expected to be the dominant and fastest-growing region over the forecasted period, due to rising defense budgets, territorial disputes, and increasing cross-border tensions.
• Countries like China, India, and South Korea are expanding military capabilities and stockpiling ammunition.
• Additionally, growing law enforcement modernization and civilian firearm usage in the region further contribute to sustained market demand and growth.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the ammunition market -  

• General Dynamics Corporation
• CBC Global Ammunition
• Olin Corporation
• Ruag Ammotec
• BAE Systems
• Thales Group
• Rheinmetall AG
• Northrop Grumman Corporation
• Elbit Systems
• Nammo AS

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments/Mergers & Acquisitions: 

• In January 2024, Nammo AS secured a USD 95 million investment from the Norwegian government to scale up its production capacity. A significant portion of this funding is allocated to increasing the output of 155 mm artillery shells, addressing NATO requirements and replenishing ammunition stockpiles amid rising global defense demands. 

• In November 2023, the UK Ministry of Defence awarded BAE Systems a £20 million contract to supply 5.56?mm and 7.62?mm small-arms ammunition over two years. This order supports replenishing stockpiles, expanding production capacity, and creating over 200 jobs in the UK.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The ammunition market is segmented into the following categories. 

Ammunition Market, by Application Type

• Defense
• Civil & Commercial

Ammunition Market, by Caliber Type

• Small-Caliber Ammunition
• Medium-Caliber Ammunition
• Large-Caliber Ammunition

Ammunition Market, by Product Type

• Bullets
• Aerial Bombs
• Grenades
• Artillery Shells
• Mortars

Ammunition Market, by Component Type

• Fuses & Primers
• Propellants
• Bases
• Projectiles & Warheads

Ammunition Market, by Mechanism Type

• Guided
• Non-Guided

Ammunition Market, by Lethality Type

• Less Lethal
• Lethal

Ammunition Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Ammunition market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]