Global Ammunition Market Size, Share, Growth Analysis, By Small Ammunition Product(Rimfire, and Centerfire), By End-use(Civil & Commercial, and Defense) - Industry Forecast 2024-2031

Global Ammunition Market size was valued at USD 55.16 billion in 2022 and is poised to grow from USD 58.25 billion in 2023 to USD 90.07 billion by 2031, growing at a CAGR of 5.60% during the forecast period (2024-2031).

The global ammunition market features a competitive landscape characterized by the presence of several prominent players striving to gain a significant market share. These companies engage in various strategies, including product innovation, partnerships, mergers and acquisitions, and geographical expansions to strengthen their position in the market. Geographical expansions also play a crucial role in the competitive landscape, as companies aim to establish a strong presence in emerging markets and cater to the increasing demand for ammunition. These expansions involve the establishment of manufacturing facilities, distribution networks, and strategic alliances with local partners. The competitive landscape of the ammunition market is further shaped by mergers and acquisitions. Major players acquire smaller companies to enhance their product portfolios, gain access to advanced technologies, and expand their customer base. These strategic moves enable companies to consolidate their market position and achieve a competitive edge. 'Northrop Grumman Corporation (US)', 'General Dynamics Corporation (US)', 'Olin Corporation (US)', 'BAE Systems (UK)', 'Rheinmetall AG (Germany)', 'FN Herstal (Belgium)', 'Poongsan Corporation (South Korea)', 'Nammo AS (Norway)', 'Vista Outdoor Inc. (US)', 'ST Engineering (Singapore)', 'CBC Group (Brazil)', 'Nexter Group (France)', 'Denel SOC Ltd (South Africa)', 'Ruag Ammotec (Switzerland)', 'Tulammo (Russia)', 'CCI Ammunition (US)', 'Eley Limited (UK)', 'Hornady Manufacturing Company (US)', 'Lapua (Finland)', 'Remington Arms Company (US)'

One of the significant drivers in the ammunition market is the rise in defense spending by various countries. Governments worldwide are allocating substantial budgets for defense modernization and strengthening their armed forces. For example, in 2022, the United States increased its defense budget, which positively impacted the ammunition market. This increased spending enables defense forces to procure advanced ammunition and enhance their capabilities, driving the demand for ammunition products.

Technological Advancements in Ammunition: A key trend in the ammunition market is the continuous focus on technological advancements to improve ammunition performance, accuracy, and safety. This includes the development of advanced bullet designs, propellant technologies, and smart ammunition systems. For example, there have been advancements in self-guided and smart ammunition that can track targets or adjust trajectory during flight. Such technological innovations enhance the effectiveness and precision of ammunition, catering to the evolving needs of defense forces and law enforcement agencies.

In 2023, North America, with a revenue share of approximately 13.4% held the position as the second-largest market for ammunition. The region's market is driven by a combination of factors, including the growing threat of terrorism and the presence of lenient gun laws, which contribute to increased consumption of bullets. The rise in sports and hunting activities acts as a significant factor for market expansion in North America. The United States, in particular, plays a crucial role in driving the bullets market in the region due to its high demand. The increased defense budget in North America also heavily influences the market, as it supports the procurement of ammunition. The long-term competitive strategy of the U.S. Department of Defense, focusing on the development of new technologies and warfare concepts, is expected to further boost market growth in the region.