Ammunition Industry is anticipated to grow at a CAGR exceeding 2% Till 2024

Posted by Marsh William on July 27th, 2018

Global Ammunition Market was worth USD 11.8 billion in 2015. It is anticipated to grow at a CAGR exceeding 2% from 2016 to 2024 (forecast period). Soaring military expenditures by various governments is the chief growth driver.

Countries such as China, India, Israel and the U.S. are implementing stockpiling and modernization programs. Mexico and Brazil are arming their police personnel with the latest weaponry. Upgrading military weapons requires higher allocation of funds for ammunition. This is expected to have a positive effect on market growth. Technological advancements such as smart weapons in developed regions could also propel the ammunition industry.

High expenditure on research & development of non-lethal ammunition such as beanbag rounds, wax bullets, rubber bullets, plastic bullets, etc. for use by the police force should fuel market demand. Surging demand for ammunitions will create new market segments in the coming years, owing to robust demand from personal security and riot control units. Popularity of hunting as a sport & leisure activity will drive the global market.

However, demand in developed nations is declining owing to insufficient defense budgets. The U.S. along with many European nations have taken steps to de-militarize themselves, in the aftermath of prolonged wars in Afghanistan and Iraq. This along with the global economic turmoil could inhibit market growth throughout the forecast period.

The global ammunition market can be segmented on the basis of products, applications, and regions. As per products, the ammunition market is divided into bullets, mortar, rocket and others. The segment for bullets reigned in 2015, holding over 54% of the total market share. This segment mainly includes small caliber bullets that are used in civil applications. Revolvers, pistols, rifles, and shotguns are the most common types of arms used for civil purposes. Emerging economies exhibit high demand for personal security from private end-users. Rockets and mortars are consumed by the defense and military.

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https://www.hexaresearch.com/research-report/ammunition-market