Ammunition market to witness heavy growth via rising national security concerns
Publisher : Fractovia | Published Date : 2017-02-10Request Sample
The rising necessity to safeguard nation’s security and enhance the defense capability countering the terrorist attacks will boost the global ammunition market. The weaponry or arms & ammunitions hold a major part of the nation’s annual expenditure. Moreover, the rising geopolitical issues have also imposed a threat to the overall national and international security, thus providing lucrative growth avenues for the ammunition industry. As per Global Market Insights, Inc. “Ammunition market size worth USD 9 billion in 2015, is forecast to grow at an annual rate of 2.8% over the period of 2016-2025.” The growing trend of recreational activities such as hunting and shooting will also generate decent revenue for the ammunition market.
Weaponry industry is witnessing technology developments at a fast pace. The demand to empower the defense forces with efficient and advanced artillery is paving a lucrative path for the ammunition market. Industry players are investing a wholesome amount in R&D to develop hi-tech weapons and ammunitions.
Europe Ammunition Market size, by caliber, 2014, 2015 & 2025 (USD Billion)
As per a report by Stockholm International Peace Research Institute (SPIRI) in 2015, the U.S., China, Russia, and Saudi Arabia were the top countries investing heavily in the ammunition industry. U.S ammunition market will dominate North America region by accounting for 90% of regional revenue by 2025, owing to the growing consumption of small and medium capacity ammunition for recreational activities such as shooting games along with growing awareness about criminal activities. Additionally, U.S. will be the production hub for the ammunition.
Asia Pacific ammunition industry size occupied 28% of the global market share in 2015 and will grow significantly over the coming years. The countries across the APAC are investing more money into defense activities to deal with the internal and external conflicts, which will fuel the ammunition market size noticeably. Moreover, rising entertainment and sports activities will also influence the Asia Pacific ammunition market trends. China, India, and Japan will be the major revenue contributors towards the regional growth.
Russia ammunition market share will exhibit lucrative opportunities for the industry players due to the surging demand for ammunition along with the growing participation of foreign companies and increasing number of defense equipment, accessories, and sporting armaments.
Based on the caliber, ammunition market is divided mainly into the mortar, artillery, large caliber, medium caliber, small caliber. Shifting public focus towards shooting as a major sports activity will generate heavy demand for ammunition over the coming years. Small caliber ammunition accounted for more than 45% of the global market share in 2015 and will grow noticeably over the coming years, primarily driven by its rising usage for defense and civil purposes. Furthermore, non-lethal ammo such as wax bullets, rubber bullets, plastic bullets, and beanbag rounds are being prominently used for recreational activities. Artillery and mortar caliber finds major application across defense sector, which will drive the ammunition industry growth considerably.
The defense and civil are the prominent application segment of the ammunition market outlook. The civil application is further divided into law enforcement, self-defense, and sports & hunting. Defense sector will dominate application segment by contributing for over 50% of the total ammunition industry share by 2025. In addition, the ministry of defense, India, is promoting private industry players to invest heavily in ammunition production for defense under the ‘make in India program’.
Market players are focusing on new development and up-gradation to produce high-quality products. General Dynamics Corporation, Olin Corporation, Nammo AS, Orbital ATK, Remington Arms, BAE Systems, Hornady, CCI, Nexter Systems, RUAG Ammotec, Global Ordnance, Federal Premium Ammunition, Poongsan Corporation, and Denel PMP are some of the prominent industry players in the ammunition market.
