global ammunition market is set to gain momentum from the increasing usage of 9mm cartridge as compared to the other calibers. It is mainly occurring because of the ongoing technological advancement, as well as its ability to perform in a versatile way. This information is provided by Fortune Business Insights™ in a recent 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.” The report further mentions that theglobal market size was USD 25.46 billion in 2019 is projected to reach USD 29.96 billion by 2027, exhibiting a CAGR of 1.71% during the forecast period from 2020 – 2027.
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Fortune Business Insights™ lists out the names of all the manufacturers present in the market. They are as follows:
- 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.)
Drivers & Restraints-
Increasing Political Unrest to Accelerate Growth
Ammunitions are majorly utilized in rifles, shotguns, and handguns with a wide range of calibers. The rising cases of mass shooting, as well as increasing terrorist activities are further resulting in the need for personal safety. It is thereby surging the demand for handguns worldwide. Apart from that, the increasing number of shooting ranges for recreational and sports activities would augment the ammunition market growth during the forecast period.Besides, the rising political unrest, increasing fear owing to stringent gun control norms, and expansion of the shooting range industry would contribute to the growth of the market.
Many Countries Ban Sales of Ammunition Owing to Covid-19 Pandemic
As per our research, in the U.S., the sales of ammunition and guns have surged since March 2020. Amongst the consumers, many of them are first-time gun buyers who fear of the sudden change in social order owing to the outbreak of the Covid-19 pandemic. Some of the other gun buyers are tensed about the fact that the U.S. government may implement stringent norms and regulations regarding the purchase of projectiles because of the spread of coronavirus infection. However, several other countries have banned the purchase of ammunition for recreational purposes and sports shooters.
Military & Homeland SecuritySegment to Lead Stoked by Military Modernization Initiatives
In terms of application analysis, the market is bifurcated into military & homeland security and civil & commercial. Amongst these, the military & homeland securitysegment held 65%ammunition market share in 2019. It is likely to remain at the forefront in the coming years backed by the rising demand for munitions from the military forces worldwide owing to increasing upgradation initiatives, cross border conflicts, and political unrest in various countries.
Increasing R&D Activities to Favor Growth in North America
In terms of geography, North America generated USD 13.76 billion revenue in 2019 and is set to be the largest market in the near future. This growth is attributable to the rising adoption of innovative projectile in the U.S. Army. Besides, the rising government expenditure on research and development activities would aid growth. Coupled with this, the rising insecurity amongst the populaces owing to the outbreak of Covid-19 pandemic is surging the sales of guns in this region. It would also augment growth. In Asia Pacific, the market is likely to grow significantly fueled by the expansion of the military forces in countries, such as South Korea, India, and China. Additionally, an upsurge in the military upgradation program and high defense expenditure would bolster growth in this region.
Key Players Aim to Receive New Orders for Strengthening Their Positions
The prominent companies operating in the market are mainly engaging in research and development activities to launch new multi-purpose and lightweight lethal munitions. They are also focusing on bagging new orders from the government agencies and other regulatory bodies to strengthen their positions. Below are two of the significant industry developments:
- September 2017: Black Hills Ammunition, a reloading supplymanufacturing company based in South Dakota, received a contract worth USD 50 million from the U.S. Army to deliver its ammunition to the latter. The contract includes the delivery of 5.56mm long-range projectile for the U.S. combat forces.
- April 2015: Orbital ATK, a provider of affordable precision weapons, military, and satellite components, headquartered in Virginia, bagged international and domestic contracts for target and tactical practice large- and medium-caliber projectile worth USD 120 million. The medium calibers include a wide range of products for LW30mm, 30mm, 25mm, and 20mmprojectiles for usage in sea, land, and air platform.