North America Small Arms Market

North America Small Arms Market Analysis

The North America Small Arms Market is expected to register a CAGR of greater than 3.2% during the forecast period.

• The COVID-19 pandemic had a minimal impact on the small arms market. While a few manufacturers experienced supply chain issues and contract delays, there was no significant drop in small arms revenue for market players in 2020 and 2021.
• According to data, there is a higher demand for ammunition from military users due to increased usage. The minimum carry count of ammunition per soldier is over 120 rounds or 4 magazines for assault rifles. In contrast, law enforcement personnel carry barely 60 rounds per person for their handguns and rifles.
• Popular and capable assault rifles can fire either 5.56- or 7.62-mm ammunition, and most countries in the study scope have a high preference for the Russian Ak-47 rifles. However, 12.7 mm or .50 caliber ammunition is in higher demand for military roles, while private and law enforcement users tend to use 9 mm and .45 caliber ammunition more often.
• North American countries are replacing their aging ammunition with fresh stock, which has a longer lifespan and improved storage and handling safety compared to ammunition manufactured a decade ago. This is a key driving factor for the market during the forecast period.

North America Small Arms Market Trends

Military Segment Expected to Continue its Dominance During the Forecast Period

• North American countries, specifically the United States and Canada, accounted for 94% of the total military spending in the region, followed by South America with 5.1% and Central America and the Caribbean with 1.2%. In 2021, the United States spent approximately 800.67 billion U.S. dollars on its military, while Canada's defense budget for the same year was around 26.5 billion U.S. dollars, representing a three billion U.S. dollar increase compared to 2020.
• With the increase in military engagements, armed forces are upgrading to more powerful small arms to meet combat requirements. Additionally, militaries are prioritizing firearms that can cause cyclical impacts and inflict more damage on enemies as their armor becomes tougher to penetrate. Countries are now procuring a wide variety of the latest-generation small arms for their militaries.
• For instance, in April 2022, the Army awarded SIG Sauer, a manufacturer, a contract for two new soldier weapons: the XM5 rifle and the XM250 automatic rifle. The XM5 will replace the M4/M4A1 carbine rifle for soldiers involved in close-quarters combat, while the XM250 will replace the M249 squad automatic weapon. Such procurements are expected to drive the segment's growth during the forecast period.

The United States to Exhibit the Highest Growth Rate During the Forecast Period

• On April 4, 2022, the FY2023 presidential budget request for the United States totaled USD 773 billion, with USD 177.5 billion allocated for the Army, USD 194 billion for the Air Force and Space Force, and USD 230.8 billion for the Navy and Marine Corps. This represents a 4.1% increase from the FY2022 request.
• The high defense spending of the United States has allowed for the procurement of new-generation small arms. In addition, the adoption of next-generation weaponry by political rivals like Russia and China has incentivized the United States to invest heavily in enhancing the capabilities of its armed forces. US personnel are frequently deployed for peacekeeping missions, as military attachés, or as part of embassy or consulate security, among other classified missions. These deployments have significantly contributed to the growth of small arms procurement by the US armed forces.
• The US forces use various infantry weapons designed to suppress enemy positions, facilitate movement for friendly troops, attack distant targets, and neutralize fortified structures and vehicles. The United States is currently focused on procuring the next-generation squad weapon for its infantry.
• After nearly five years of development, the Army is expected to finalize the design for its Next Generation Squad Weapon by mid-2022 to replace the M4 carbine and M249 machine guns currently used by ground combat soldiers. The two weapons resulting from the Next Generation Squad Weapon program will be fielded to soldiers in frontline military occupational specialties, including infantry, cavalry scouts, combat medics, forward observers, combat engineers, and special operations forces.
• Furthermore, the United States has a significant number of civilian gun users, contributing to the development of a robust small arms industry over the years. As a result, demand from both the civilian and military sectors is expected to continue to positively influence the market in the region during the forecast period.

North America Small Arms Industry Overview

The small arms market in North America is fragmented, with the presence of major players such as Sig Saur GmbH, FN Herstal SA, Heckler & Koch GmbH, Sturm, Ruger & Co, and Smith & Wesson Brands, Inc. Furthermore, North American countries are increasing their local small arms manufacturing capabilities, and competition in the market is expected to intensify further in the coming years.

North America Small Arms Market Leaders

North America Small Arms Market News

• October 2022: The Canadian government announced that MD Charlton had been awarded a contract worth USD 3.2 million to supply new pistols for the Canadian Army. National Defence Minister Anita Anand made the announcement, revealing that as part of the agreement, the British Columbia-based company would provide 7,000 C22 full-frame modular handguns (Sig Sauer P320), along with holster systems, spares, and training.
• March 2022: The US Army announced its intention to acquire 29,000 next-generation rifles and machine guns for testing purposes through grants.