20 January 2020 - The Global Ammunition
Market size is likely to reach
USD 16.07 billion by 2024 and is anticipated to experience a noteworthy growth
in the near future owing to the rising security concerns caused by the upswing
in terrorist groups and activities. Arms race has been observed in the
developing economies of Pakistan, China and India which is presumed to thrust
the demand over the forecast period.
The
market has been segmented into different products that primarily consist of
rockets, bullets, mortars and others. Civil & defense are the two end-use
segments included in the study. Political differences along with the rising
tension across borders is resulting in the rise in stacking of armories.
According
to the latest statistics published by Stockholm International Peace Research
Institute (SIPRI), China, Saudi Arabia, Russia, and the U.S were the foremost
nations having highest expenditure on armories. The majority of the share was
captured by the U.S with 36%, followed by China with a share of 13% in 2015.
Rising
inclination towards hunting and sports activities has enhanced ammunition market.
In terms of exports, the U.S is amongst the major exporter of weapons and
armories across the globe. The U.S armory industry is a commercialized segment
and a significant contributor in the countries’ economy. In the context of
R&D, innovation and production, the U.S ranks on top.
Product Insights
The
major product segment in 2015 was bullets which accounted for 53.9% of the
total market share. Bullets are mostly utilized by the civilians and criminal
organizations. Small caliber bullets utilized in domestic end-use is a key
contributor in the segment.
Domestic
end-use utilizes numerous armories which comprises of rifles, handguns, pistols
and shotguns. The demand is also fueled by the growth in personal end-use for
security from developing economies. Other segments are mostly consumed by the
defense and military departments. Upsurge in procurement of armories can be
attributed to the upswing in terrorist activities or terrorism.
End-Use Insights
Civil
or domestic was the most noticeable segment which accounted for 74.5% of the
total revenue share. The domestic segment is expected to observe a substantial
rise as a result of high growth from hunting & sports activities in the
near future. The domestic segment comprises of sports & hunting, self-defense
and law enforcement.
Outdoor
and adventure activity is massive occupation in North America, specifically in
the U.S. According to the latest study conducted by U.S. Fish and Wildlife
Services, Americans spend around USD 50 billion on hunting and sports activities
in 2015. All these aspects enhance the complete growth of the ammunition
industry.
Regional Insights
Asia
Pacific, which is projected to grow at a CAGR of 4.5%, also accounted for the
highest share in 2015 and is projected to continue the trend over the forecast
period. The upsurge of terrorism activities in developing economies such as
India is resulting in the strengthening of the overall defense system of the
country. India signed several contracts valued at USD 15 billion to buy
armories in March, 2016.
Production
of small armories and weapons is a leading industry in Europe as a result of
which it has retained its position as one of the key arms exporter across the
globe. Key countries in Europe consists of the U.K, France, Germany and Russia.
Competitive Insights
Major
businesses in the market include General Dynamics Corporation, Remington Arms
Company, Inc., BAE Systems, Ruag Ammotec, Federal Premium Ammunition and Maxam
and Poongsan Corporation.
With
a view of safeguarding a solid position in the market and minimize
competitiveness, the international weapons and armories industry has constantly
experienced mergers and acquisitions by the key participants. BAE systems
merged with General dynamics ordnance and tactical systems in the year 2012 to
produce RCGM i.e. an 81mm Roll Controlled Guided Mortar.
Market Segment:
Product Outlook (Revenue, USD Million,
2013 - 2024)
• Bullet
• Rocket
• Mortar
• Others
End-Use Outlook (Revenue, USD Million,
2013 - 2024)
• Civil
• Law Enforcement
• Sports and Hunting
• Self-defense
• Defense
Regional Outlook (Revenue, USD Million,
2013 - 2024)
• North America
• U.S.
• Europe
• Russia
• UK
• France
• Asia Pacific
• China
• India
• Latin America
• Brazil
• Cuba
• MEA
• Saudi Arabia
• Israel
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