Weapons and Ammunition Market

Weapons And Ammunition Market Analysis

The Weapons And Ammunition Market size is estimated at USD 69.35 billion in 2025, and is expected to reach USD 99.61 billion by 2030, at a CAGR of 7.51% during the forecast period (2025-2030).

The rise in global terrorism and insurgent activities has prompted defense agencies across the world to bolster their countermeasure capabilities. Nations like the United States, Russia, China, and India are not only increasing troop numbers along their borders and those of their allies but also swiftly procuring weapons to ensure security. Technological advancements have birthed guided weapons with enhanced accuracy, complemented by accessories like weapon sights, night vision gear, aiming lasers, rangefinders, and fire control systems. These innovations are expected to propel the portable explosives segment in the weapons and ammunition market in the coming years.

There's a surging demand for advanced weaponry that enhances defense capabilities and safeguards soldiers. While small-caliber ammunition finds broad civilian use in activities like hunting and sports shooting, medium and large calibers are predominantly for defense purposes. Moreover, localizing arms and ammunition production is gaining momentum globally, promising further market expansion. Munitions India Limited, a key Indian defense manufacturer, recorded ammunition and explosives exports worth INR 1,726 crore (USD 210 million) in the FY2023-2024.

Despite the uptick in defense spending globally, the growth in arms and ammunition production has been somewhat restrained. This is attributed to technological constraints, inadequate infrastructure, and manufacturing capabilities.

Weapons And Ammunition Market Trends

The Small Caliber Segment Held the Highest Share in the Market

Countries like India, China, and the United States are significantly boosting their ground forces by introducing cutting-edge small arms, reflecting the impact of military modernization on the ammunition market. Military and law enforcement training needs consistently fuel the demand for small ammunition. Additionally, factors such as border disputes, threats from militants and terrorists, and civil unrest are bolstering the global market for small-caliber ammunition.

While the growth of the small-caliber ammunition market hinges on factors like fund allocation for new equipment, the rapid obsolescence of technology could pose challenges. Furthermore, as nations ramp up defense investments for modernization, there's a heightened demand for small-caliber ammunition to replace and upgrade existing arsenals. The introduction of technologically advanced handguns further drives the market. For instance, in August 2023, India unveiled its Prabal, a long-range revolver with a firing range of 50 meters, surpassing its counterparts. Similarly, in February 2023, CARACAL, the biggest small arms manufacturer in the Middle East, announced that it expects its business to witness significant growth in the next five years, and the company is also looking to boost its exports to the global market.

​However, despite these growth drivers, increasing emphasis on gun control measures aimed at curbing accidents, domestic violence, and suicides might pose hurdles, potentially hindering the market's growth during the forecast period.

North America is Projected to Show Remarkable Growth During the Forecast Period

North America maintains its market dominance, driven by rising defense spending and heightened procurement of advanced weaponry by the United States and Canada. In 2023, the United States earmarked a substantial USD 4.7 billion for weapon acquisitions. Notably, the United States leads in light weaponry, solidifying its military supremacy with a consistent uptick in advanced system procurements. In April 2022, the US Army signed a decade-long deal with Sig Sauer Inc. commissioning the production and delivery of two Next Generation Squad Weapon variants, the XM250 Automatic Rifle and the XM5 Rifle, alongside the 6.8 Common Cartridge Family of Ammunition.

The evolving face of warfare propels the US Department of Defense (DoD) to bolster its armed forces with superior armaments. Rigorous testing ensures operational reliability and gauges performance enhancements from new integrated designs. For instance, in February 2023, the United States sealed a USD 522 million deal with Northrop Grumman Corporation and Global Military Products, focusing on artillery ammunition for Ukraine. Additionally, in September 2022, the US Army awarded a USD 114 million five-year contract for supplying 5.56 mm NATO training ammo, specifically the AA40 5.56 mm NATO frangible rounds utilized in training by various US military branches. Such developments are expected to drive the market's growth in the region.

Weapons And Ammunition Industry Overview

The global market for weapons and ammunition exhibits a high degree of fragmentation, with only a few vendors possessing the requisite technological prowess to produce and distribute military-grade weapons at a regional level. However, on a global scale, key players like BAE Systems PLC, General Dynamics Corporation, MBDA, RTX Corporation, and Kalashnikov Concern JSC collectively command a substantial market share.

The weapons landscape is witnessing the development of the Magneto Hydrodynamic Explosive Munition (MAHEM), which was spearheaded by the Defense Advanced Research Projects Agency (DARPA). Diverging from traditional chemical energy explosives used in crafting explosively formed jets and self-forging pens, MAHEM leverages a magnetic flux system to propel its projectile. This innovative approach equips MAHEM with achieving high projectile velocities and extended ranges, utilizing molten metal for enhanced penetration of armored vehicles, solidifying its battlefield prowess. Also, RTX Corporation is eyeing a significant shift, as it anticipates that by 2025, a third of its weapon sales will come from international buyers, up from 25% in the previous year. In 2022, the top five US weapons contractors collectively generated USD 196 billion in military revenue. RTX alone accounted for around USD 40 billion of this total.

Weapons And Ammunition Market Leaders

Weapons And Ammunition Market News

February 2024: South Korea is set to mass-produce a new 155 mm ammunition variant tailored for its self-propelled artillery unit, the K9. In 2023, South Korea's Defense Acquisition Program Administration (DAPA) ordered 2,000 155-mm projectiles designed for an extended flight range, with delivery slated by the close of 2024. Additionally, DAPA is finalizing another agreement with Poongsan to procure further ammunition, which is scheduled for production in 2025.

January 2023: The Australian government unveiled plans to bolster the nation's defense prowess by acquiring cutting-edge weapon systems. The government signed contracts worth USD 675.80 million, entrusting CEA and Kongsberg Gruppen ASA to supply these advanced systems. Specifically, CEA is set to provide the Army with High Mobility Artillery Rocket Systems (HIMARS), while Kongsberg will equip the Royal Australian Navy with naval strike missiles.