The global ammunition market was valued at USD 22.7 billion and is projected to witness a growth of USD 29.68 billion by 2030 at a CAGR of 3.2%. There are various factors determining market growth including the militarization of the police forces, change in the warfare nature, increase in drug trafficking, and rise in terrorist activities. The evolution and modernization of weapons for armed forces are also driving factors for the ammunition market growth.
Ammunitions include bombs, bullets, and missiles that are used as lethal weapons in war and combat situations. Besides, the rise of geopolitical tensions worldwide, the increase in investments by militaries for better defense equipment is also projected to drive the ammunition demand during the forecast years. The rising procurement by the Indian Military for artillery and mortar platforms is predicted to increase the ammunition number over the next few years. In addition, the increasing hostilities in the Middle Eastern countries are expected to contribute to the demand for ammunition in the estimated time frame. The UK government recently announced an increase in its naval budget to USD 45.9 billion which would amount to the substantial potential for ammunition demand for air and sea defense systems.
The adoption of evolved weapons and equipment is significantly growing in regions like North America and Europe to further strengthen their defense. For example, Germany initiated the transformation of its military capabilities which influenced the market positively. However, due to the increasing crime rates in several developed countries, the stringent government laws on weapons and gun ownership especially by civilians may hamper the demand for ammunition.
In spite of all the markets being affected negatively due to the COVID-19 outbreak, there has been an overall growth in the sale of weapons and arms. The market witnessed a surge in gun buying, especially among first-time gun owners. Countries like the U.S., Australia, Japan, and India of the Quad Group are collaborating to build technical expertise, and develop strategic advancements and advantages.
Research Support Specialist, USA
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