Growing Demand for Ammunition in Military and Law Enforcement Agencies to Boost the Growth of the Global Ammunition Market by 2031

The term ammunition can include various components that are necessary to feed, fire, or function the firearm. The types of ammunition available in the market today are diverse, ranging from standard lead bullets to advanced armor-piercing rounds. The specific type of ammunition used in a firearm is determined by the type of firearm and the intended use of the firearm. Ammunition can be used for a variety of purposes, including target shooting, hunting, self-defense, and military or law enforcement operations. Some types of ammunition, such as sniper rounds, are specifically designed for long-range shooting. With the right ammunition, shooters can engage targets at greater distances, which can be particularly useful for hunting or tactical situations. Certain types of ammunition, such as hollow-point rounds, are designed to expand the impact and create a larger wound cavity. This can be particularly useful in self-defense situations, as it can increase the likelihood of stopping an attacker quickly. It is important to use ammunition responsibly and follow proper safety protocols while handling them.   

Forecast Analysis of the Global Ammunition Market

According to the report published by Research Dive, the global ammunition market is anticipated to generate a revenue of $31,717.40 million and grow at a CAGR of 3.9% over the 2022-2031 timeframe.

The increasing demand for ammunition among military and law enforcement agencies for training and operational purposes and to reserve for emergencies and potential conflicts is predicted to bolster the growth of the ammunition market over the analysis timeframe. Moreover, the rising innovation in ammunition technology to develop and commercialize new types of ammunition with better accuracy and consistency, increased range, and stopping power is expected to create massive growth opportunities for the market over the estimated period. However, the high cost of production of ammunition, particularly in developing countries, may hinder the growth of the market over the forecast period. 

The major players of the ammunition market include Remington Arms Company LLC, Northrop Grumman Corporation, ST Engineering, FN Herstal, Hanwha Corporation, General Dynamics Corporation, Nexter KNDS Group, BAE Systems, Inc., Rheinmetall Defense, and many more. 

Key Developments of the Ammunition Market

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global ammunition market to grow exponentially. For instance:

• In April 2021, Elbit Systems, an Israel-based international defense electronics company announced its acquisition of BAE Systems Rokar International Ltd., a leading provider of the most advanced, technology-led defense, aerospace, and security solutions. With this acquisition, the companies aimed to enhance their capabilities in networked precision fire solutions.
   
• In June 2022, FN Herstal, S.A., the renowned designer and manufacturer of small-calibre firearms announced its collaboration with Fiocchi Munizioni SPA, a leading weapon and ammunition company providing ammunition for outdoor shooting sports. With this collaboration, the companies aimed to manufacture and supply 5.7x28mm ammunition to the US commercial market to meet the growing consumer demand.
   
• In July 2022, AMMO, Inc., a leader in design, performance, quality, and manufacturing of high-performance ammunition and components announced the successful development and launch of its new product, namely, “Green Streak®”, a one-way luminescent ammunition. It is a modern type of visual ammunition that does not use any form of pyrotechnic to illuminate the trajectory of the projectile. 

Most Profitable Region

The Asia-Pacific region of the ammunition market held the largest market share in 2021. This is mainly due to the increasing military modernization programs, and several conflicts and security threats across the region. Moreover, the rising popularity of shooting sports, and hunting activities in the region is expected to boost the regional growth of the market over the estimated period.  

Covid-19 Impact on the Global Ammunition Market 

The outbreak of the Covid-19 pandemic has brought several uncertainties across various organizations and slowed down the global economy. It has also had a significant impact on the growth of the ammunition market. At first, there was a rise in the demand for firearms and ammunition because people across developed economies bought them in bulk due to the fear of social unrest, uncertainty, protest police brutality, or any other vital circumstances during the lockdown. However, with the progression of the pandemic, the demand for firearms and ammunition started declining, due to the availability of vaccines, reduced concerns about economic collapse, and decreased fear of social unrest. All these factors have declined the market growth over the crisis.