Ammunition Market Size Worth USD 29.96 Billion Globally by 2027 | Exhibiting a CAGR of 1.71% by 2027
Fortune Business Insights
Updated 5 min read
Fortune Business Insights
According to Fortune Business Insights, the Global Ammunition Market Size is projected to reach USD 29.96 Billion by 2027, at CAGR of 1.71% during forecast period 2020-2027 | Increasing Political Unrest to Accelerate Growth
Pune, India, Nov. 02, 2022 (GLOBE NEWSWIRE) -- According to Fortune Business Insights, the global ammunition market size is set to gain momentum from the increasing usage of 9mm cartridges as compared to the other calibers. It is mainly occurring because of the ongoing technological advancement, as well as its ability to perform in a versatile way. The research report further mentions that the global market size was USD 25.46 billion in 2019 is projected to reach USD 29.96 billion by 2027, exhibiting a CAGR of 1.71% during the forecast period from 2020 To 2027.
Many Countries Ban Sales of Ammunition Owing to Covid-19 Pandemic
As per our research, in the U.S., the sales of ammunition and guns have surged since March 2020. Amongst the consumers, many of them are first-time gun buyers who fear of the sudden change in social order owing to the outbreak of the Covid-19 pandemic. Some of the other gun buyers are tensed about the fact that the U.S. government may implement stringent norms and regulations regarding the purchase of projectiles because of the spread of coronavirus infection. However, several other countries have banned the purchase of ammunition for recreational purposes and sports shooters.
Key Players Aim to Receive New Orders for Strengthening Their Positions
The prominent companies operating in the market are mainly engaging in research and development activities to launch new multi-purpose and lightweight lethal munitions. They are also focusing on bagging new orders from the government agencies and other regulatory bodies to strengthen their positions.
Regional Analysis-
Increasing R&D Activities to Favour Growth in North America
In terms of geography, North America generated USD 13.76 billion revenue in 2019 and is set to be the largest market in the near future. This growth is attributable to the rising adoption of innovative projectile in the U.S. Army.
Besides, the rising government expenditure on research and development activities would aid growth. Coupled with this, the rising insecurity amongst the populaces owing to the outbreak of Covid-19 pandemic is surging the sales of guns in this region. It would also augment growth. In Asia Pacific, the market is likely to grow significantly fueled by the expansion of the military forces in countries, such as South Korea, India, and China. Additionally, an upsurge in the military upgradation program and high defense expenditure would bolster growth in this region.
Drivers & Restraints-
Increasing Political Unrest to Accelerate Growth
Ammunitions are majorly utilized in rifles, shotguns, and handguns with a wide range of calibres. The rising cases of mass shooting, as well as increasing terrorist activities are further resulting in the need for personal safety. It is thereby surging the demand for handguns worldwide. Apart from that, the increasing number of shooting ranges for recreational and sports activities would augment the ammunition market growth during the forecast period. Besides, the rising political unrest, increasing fear owing to stringent gun control norms, and expansion of the shooting range industry would contribute to the growth of the market.
Below are two of the significant industry developments:
September 2017: Black Hills Ammunition, a reloading supply manufacturing company based in South Dakota, received a contract worth USD 50 million from the U.S. Army to deliver its ammunition to the latter. The contract includes the delivery of 5.56mm long-range projectile for the U.S. combat forces.
April 2015: Orbital ATK, a provider of affordable precision weapons, military, and satellite components, headquartered in Virginia, bagged international and domestic contracts for target and tactical practice large- and medium-caliber projectile worth USD 120 million. The medium calibers include a wide range of products for LW30mm, 30mm, 25mm, and 20mm projectiles for usage in sea, land, and air platforms.
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