The global ammunition market, valued at USD 68.57 billion in 2023, is projected to experience a decline of 11.3% annually from 2024 to 2030. Despite this, the market is influenced by several factors.
Firstly, the increasing number of terrorist activities and global hostilities is driving demand for defense equipment, including ammunition. This trend is expected to benefit the industry over the forecast period. Additionally, the adoption of advanced materials for lightweight ammunition is anticipated to reduce transportation costs and increase the number of rounds that can be transported within weight limits. This technological advancement is likely to positively impact market growth.a
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However, the use of advanced materials and new technologies in production may lead to fluctuations in ammunition prices. Furthermore, commercial availability of ammunition products is limited due to weapons restrictions in major economies. Nevertheless, defense organizations in major territories are actively procuring these products to enhance their security capabilities. The ongoing military enhancements by major economies such as China, India, France, and Russia are expected to further support industry growth.
The global ammunition industry is characterized by strategic collaborations and acquisitions between major players and governments. Several governments, particularly India, are focusing on strengthening their defense forces through procurement and indigenous production initiatives.
Small Ammunition Segmentation Insights
The centerfire small ammunition products segment dominated the market in 2023, capturing a significant 71.12% revenue share. Centerfire ammunition, widely used in rifles, shotguns, and handguns, features a primer positioned at the center of the casing base. This design enables reloading, making it the most prevalent cartridge type.
Centerfire ammunition's versatility and reliability have made it the standard choice for military, police, and security forces. Its ability to handle high pressure and reusable casings is crucial for military operations. The thicker metal casing offers superior durability, withstanding rough handling without significant damage.
In contrast, the rimfire small ammunition product segment is projected to experience a -3.6% CAGR over the forecast period. Rimfire bullets are favored by beginners due to their reduced recoil. Their simpler construction, involving a thin casing with a flattened primer, contributes to lower manufacturing costs.
While rimfire ammunition offers affordability, it is limited to smaller calibers. The need for a thin casing to ignite the primer restricts its application to medium and large calibers. This type of ammunition is commonly associated with the .22LR caliber.
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