Oct 14, 2022   SOURCE: BusinessWire

Global Ammunition Market Report 2022: Rise in Global Military Spending Promotes Procurement of Ammunitions - ResearchAndMarkets.com

The "Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product, Application, Guidance, Lethality, and Caliber" report has been added to ResearchAndMarkets.com's offering.

The Ammunitions market is expected to grow from US$ 43.04 billion in 2022 to US$ 69.75 billion by 2028; it is estimated to grow at a CAGR of 8.4% from 2022 to 2028.

Europe is expected to account for second largest share in the ammunitions market analysis in 2022. The ammunition market players in this region are concentrating their efforts on the development of advanced ammunitions, such as precision-guided missiles and mortars. European countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking.

The Russian arms/ammunition industry is one most significant in the world, as its ammunitions are less expensive and easier to maintain than the available alternatives. The country ranked second and accounted for 19% of global ammunition exports during 2017-2021. However, ammunition manufacturing in Russia depends on various international raw material and component suppliers. Thus, due to supply chain disruptions, Russia is expected to lose its position to various arms/ammunition manufacturers such as China, India, Turkey, and a few of European countries.

Moreover, the invasion of Russia into Ukraine has been encouraging governments of other countries to offer order contracts to regional or domestic manufacturers. China and India, apart from the US, are foreseen to gain from Russia's loss in terms of arms/ammunition manufacturing and exports. As Russia's major arms/ammunition customers include Vietnam, Myanmar, Indonesia, and Malaysia, the decline in production volume from Russian manufacturers would compel their governments to purchase from China or India.

Vendors did not take any major initiatives to boost their production capacities because increasing their production capacity to meet the current demands may hamper their future operations; unfavorable conditions can drastically hamper profits and operational costs if the demand drops down in the future due to any unknown reason. Hence, the shortage of ammunitions is hindering the ammunitions market growth across different regions.

The ammunitions market in Asia Pacific is anticipated to expand at the highest CAGR throughout the forecast period. A rise in geopolitical tensions and increase in terrorist attacks are the major factors contributing to the market growth in this region. Pakistan-India, China-India, China-Taiwan, and China-Japan are among the major conflicts in Asia Pacific, which are bolstering the demand for ammunition over the years. China and India are investing in the modernization of their military forces. These countries are purchasing ammunitions for their armed forces and law enforcement agencies (to curb domestic crime rates). Furthermore, the presence of well-established ammunition manufacturers - such as Kongsberg Defense Australia, HIFaser, Thales Australia, Yantra India Limited, and Munitions India Limited - in China, India, Australia, and Japan, among others, is anticipated to drive the growth of the ammunitions market in Asia Pacific in the coming years.

Cross-border conflicts have also led to an increase in spending for ammunition procurement across European countries. For instance, countries such as Germany and Belgium have already announced their intentions to double their defense spending in 2023, which would be utilized for their national security operations. Moreover, the ongoing war between Russia and Ukraine is also raising concerns related to national security in different European countries, which is further expected to catalyze the ammunitions market growth this region in the next few years.

Market Dynamics

Market Drivers

  • Rise in Global Military Spending Promotes Procurement of Ammunitions
  • Introduction of Lightweight Ammunitions

Key Market Restraints

  • Shortage of Ammunition After FY 2020

Key Market Opportunities

  • Rising Demand for Guided Ammunitions from Emerging Countries

Future Trends

  • Technological Advancements Across Firearms Industry

Key Topics Covered:

1. Introduction

2. Key Takeaways

3. Research Methodology

4. Ammunition Market Landscape

5. Ammunition Market - Key Market Dynamics

6. Ammunition Market - Global Market Analysis

7. Ammunition Market Analysis - by Product

8. Ammunition Market Analysis - by Application

9. Ammunition Market Analysis - by Guidance

10. Ammunition Market Analysis - by Lethality

11. Ammunition Market Analysis - by Caliber

12. Ammunition Market - Geographic Analysis

13. Ammunition Market - COVID-19 Impact Analysis

14. Industry Landscape

15. Company Profiles

16. Appendix

Companies Mentioned

  • Northrop Grumman Corporation
  • BAE Systems
  • Elbit Systems Ltd
  • Raytheon Technologies Corporation
  • Vista Outdoor Operations LLC
  • AMTEC Corporation
  • NAMMO AS
  • Rheinmetall AG
  • RUAG Group
  • Thales Group

For more information about this report visit https://www.researchandmarkets.com/r/78ewyr