Ammunition Market SWOT Analysis Of Top Key Player Forecasts To 2021

Global Ammunition Market: Snapshot

Concerns over terrorism are escalating in several regions across the world and especially in Europe. Terrorist disturbances are growing in count and government bodies are doing what they can to curb it. This includes increasing expenditure on ammunitions of all types and calibers. Countries such as South Korea, Indian, China, and Pakistan are also increasing their spending on ammunition due to disturbances created by neighboring countries.

A related event is the growing pace of the arms race in countries from the Middle East and Africa, and Asia Pacific. Several countries from these regions are strengthening their troop count as well as modernizing their military equipment. This growing arms race is creating a very high demand for ammunitions, further driving its global market.

However, the U.S. and several European countries are on their way to steadily demilitarizing themselves, a move which started after the Iraq and Afghanistan wars. The demilitarization, coupled with the recent economic meltdown, have caused North America and Europe to lose share values in the global ammunition market.

The resultant effect of all the above factors and more can be seen in a predicted CAGR for the market’s revenue, which is 3.7% from 2015 to 2021. By the end of 2021, the revenue is expected to reach US$14.87 bn.

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APAC and MEA Demand for Ammunitions Increases Rapidly

Although North America and Europe currently hold leading shares in the market value for ammunitions, their growth rate is expected reduce over the coming years due to substantial reductions in overall demand. At the same time, the demand for ammunitions is expected to increase rapidly in Asia Pacific and the MEA region. By the end of 2021, the share of ammunitions revenue held by Europe will be 31.78%.

At the moment, most of the demand for ammunitions in Europe is coming from the strengthening of national defense forces to combat the rising waves of terrorism. Both North America and Europe are currently focusing more on the replacement and refurbishment of older weapons and ammunitions, creating a moderate demand for new ammo. The current largest market for ammunitions lies in Russia, a country which is expected to maintain its leading position till 2021.

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Military Demand for Ammunition Keeps Player Revenues at Steady Growth Rate

By the end of 2021, the revenue share in the ammunitions market held by the military sector is expected to be 57.14%. The military receives significant financial aid and interest from the national governments, which allows the military to create a consistent level of research and development efforts in making efficient, precise, and tougher rounds. The military sectors is currently showing a high demand in all types of bullets and in all calibers. Law enforcement and civil sales of ammunition are primarily done in small caliber rounds. The sale of commercial ammunitions, meanwhile, is reducing in developed economies and is increasing in the emerging ones, primarily as a source of self-defense.

The leading manufacturers of ammunition from a global perspective include Fiocchi Munizioni S.p.A., General Dynamics Corporation, Hornady Manufacturing Company, Inc., Orbital ATK, Inc., Nammo A.S., and RUAG Holding A.G.

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