The global Ammunition Market size is expected to reach USD 28.37 billion by 2028 registering a CAGR of 3.6%, according to a new report by Grand View Research, Inc. Increasing investments in defense equipment by militaries on account of the rise in geopolitical tension across the globe are anticipated to drive the product demand. Increasing procurement of artillery and mortar platforms by the Indian Army through several development platforms are expected to raise the number of ammunition over the forecast period. Also, the rise in hostilities is expected to boost the product demand in the Middle Eastern countries during the projected period.
Technological innovations for the replacement of brass-based bullet cases with polymer-based bullet cases are expected to offer growth prospects to the market. Application of polymer materials in bullets reduces the ammunition weight by over 40%, wherein the impact of the same is unaffected, thereby making it lighter and accurate as compared to conventional bullets. Rising geopolitical issues, warlike situations, and increasing terrorist activities across the globe are leading to the rise in product stockpiling by the prominent militaries and armed forces. This strategy is likely to offer cost savings as the products are purchased in high volume at cheap prices, which, in turn, also supports market growth.
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Ammunition Market Report Highlights
- Small caliber emerged as the largest segment in 2020 and is expected to generate revenue of over USD 14.9 billion by 2028 due to a wide range of applications including assault rifles, handguns, and pistons
- The centerfire product segment accounted for the largest revenue share of over 68% in 2020 and is projected to witness the fastest growth during the forecast period
- Defense emerged as the largest application segment in 2020 accounting for the revenue share of 76.2%
- This growth was attributed to the increased product procurement by homeland security forces
- Asia Pacific is expected to record the maximum CAGR of 4.7% over the forecast years primarily due to the upgrading of defense forces across countries, such as China, India, Australia, and Singapore
- The market in U.S. was valued at USD 6.79 billion in 2020 and is expected to grow substantially during the forecast period due to rising defense expenditure coupled with intensive training activities conducted by the country’s defense forces