Hyderabad, March 23, 2023 (GLOBE NEWSWIRE) -- According to a new market research report titled, “Ammunition Market – (2023 – 2028),” is expected to grow at a CAGR of 3.5%. The growth in global defense spending and initiation of infantry support programs to develop sophisticated and deadlier weaponry and ammunition are anticipated to bolster the adoption of newer generation ammunition with better penetrating power, thereby driving the growth of the ammunition market. Also, several new weapon and ammunition development programs are underway to develop lighter but deadlier ammunition with an enhanced range.
Some of the major market trends shaping the Ammunition Market:
The need to maintain a sufficient inventory of ammunition with the militaries worldwide and the increasing demand for training ammunition is anticipated to have a positive impact on the military small caliber ammunition segment.
Some of the major market trends shaping the Ammunition Market according to our research experts:
- The small caliber ammunition segment held the largest market share in 2021.
- In December 2021, the Indian government placed an order for 670,000 rifles worth INR 5,124 crore (USD 681.85 million) to Russia.
- Initially, a lot of 70,000 AK-203 Kalashnikov assault rifles were delivered by Russia in January 2022.
- And the remaining 600,000 rifles are planned to be manufactured by Indo-Russia Rifles Private Limited (IRRPL), the Indo-Russian joint venture company.
- Militaries are increasingly moving toward higher calibers like 7.62 mm projectiles.
- As the existing widely used calibers like the 5.56 mm are becoming ineffective in piercing the tougher armors.
- Countries like the United States and India are also developing firearms based on new calibers.
- New calibers like 6.8 mm ammunition are expected to witness higher demand in the years to come.
Governments are also focusing on increasing the local manufacturing capabilities of ammunition for their armed forces, which is expected to further intensify the competition between the global and local players, especially in regions like Asia-Pacific, the Middle East, and Africa, during the forecast period.
How is the growth being addressed?
The United States has one of the largest armed forces in the world, with 2.26 million total military personnel, of which 1.4 million serve as active military personnel and 0.86 million serve in the reserve force. The country has the largest military spending in the world and accounts for 39% of global spending.
Currently, due to the ongoing geopolitical tensions, the United States has increased its investments in advanced weapon systems and ammunition to meet the enhanced capabilities of China and Russia on the battlefield. Also, participation in NATO missions abroad generates significant demand for different types of ammunition
Currently, the US Army is planning to move away from the 5.56 mm round in its infantry weapons that have been the standard for decades. In addition to small infantry weapons, the US Army is investing in the modernization of its mortar and artillery systems to keep up with the pace of technological advances for enhanced responsiveness, survivability, range, and accuracy.
Who are the key players in the Ammunition Market?
The ammunition market is fragmented, with the presence of several global and local ammunition manufacturing companies.
- BAE Systems PLC
- Rheinmetall AG
- General Dynamics Corporation
- Nexter Group
- RUAG Group
- Singapore Technologies Engineering Ltd
- Denel SOC Ltd
- Northrop Grumman Corporation
- MESKO SA
- CBC Global Ammunition
- Indian Ordnance Factories
- Saab AB
- Hanwha Corporation
- ARSENAL JSCo.
Recent developments in the Ammunition Market:
- In January 2022, the German Bundeswehr signed an agreement with Rheinmetall to deliver 120 mm mortar ammunition and modernize its mortar systems. Booked under the 2021 order, the contract was placed under a gross volume worth approximately EUR 27 million. The modernization is expected to be completed by 2023.
- In December 2021, the Indian government announced an Expression of Interest to purchase 1,966 rounds of 155 mm Terminally Guided Munitions for the Indian Army to enhance the capabilities of the artillery guns in its inventory.
- In April 2021, the Polish Armaments Group received two contracts worth more than PLN 350 million from the Polish Armed Forces to deliver 122 mm Feniks FHD rockets and 120 mm RAK-HE-1 mortar ammunition to enhance the capabilities of the artillery forces.
In a nutshell, the Mordor Intelligence Ammunition Market Research Report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand the Ammunition industry. Get a glance at the https://www.mordorintelligence.com/industry-reports/ammunition-market
About Mordor Intelligence:
Mordor Intelligence is a market intelligence and advisory firm. At Mordor Intelligence we believe in predicting butterfly effects that have the potential to change or significantly impact market dynamics.
Our market research reports are comprehensive and provide exclusive data, facts and figures, trends, and the competitive landscape of the industry.
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