Ammunition Market- Global Analysis and Forecast upto 2019

The increased responsibilities of federal, state level, and local bodies for prevention of terror attacks and the response attentiveness are the key reasons contributing to this growth.

The global ammunition market derives its demand from the rising concern regarding the increasing crime rate around the world. The industry has entered a new phase of development after years of maturity. The increased responsibilities of federal, state level, and local bodies for prevention of terror attacks and the response attentiveness are the key reasons contributing to this growth. The resurgence of demand from the military and the civilian sectors is expected to aid the development in the global ammunition industry in the near future. However, apparent cut in budgets by various governments, the high cost involved in operating and maintaining a product line in a commercial manner and the capital investments for novel technology are a few factors limiting the growth of this market.

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In 2012, the global ammunition industry reached US$9,235.8 million. But, during the period of 2013 to 2019, the market is expected to experience sluggish growth at a 1.3% CAGR to create fortunes amounting US$10,093.1 million by the end of the period of the forecast.

Future of Global Ammunition Industry Lies in Large Caliber, Small Arm ammunition, and Defense Sector

Large caliber, medium caliber, small caliber, naval, mortar, artillery, and aircraft ammunition are the major types of ammunitions traded in the global industry. The market for large caliber ammunition headed the global ammunition industry based on types in 2012. The trend is likely to be continued during the next couple of years as well.

The global ammunition market majorly trades in products such as small arm ammunition, torpedoes, rockets, missiles and warheads, bombs such as rocket bombs and grenades, and mines and other explosives. In 2012, the market for small arm ammunition led the overall ammunition industry. Industry experts predict that this product market will maintain its dominance among other product markets during the forecast period.

Ammunitions are largely employed in various end-use industries such as defense, army, naval, air force, homeland security, special forces, federal security agencies, private security agencies, and others (research and development, entertainment, personal, and fire services). The defense industry dominated the global ammunition market in application segment and is likely to continue to lead with a 1.45% CAGR during the period of the forecast.

Ammunition Market in Europe to Maintain its Dominance in Future

The global ammunition market is spread across various regional markets such as North America, Europe, Asia Pacific, and the Rest of the World. Of these, Europe heads the global industry at present. It had generated 35.5% of the overall revenue the market produced in 2012. The European ammunition industry is expected to maintain its dominance in the coming years. However, Europe is likely to grow at a slower pace as compared to Asia Pacific and the Rest of the World credited to the increase in the technical developments, particularly in artillery ammunition, in these regions. North America is projected to report the highest growth rate by the end of 2019. On the other hand, the arm trade treaty in the United Nations’ arms trade treaty and the cut in budgets in Europe and the U.S. are affecting the development of the global ammunition industry.

The global ammunition industry is consolidated in nature with the top four participants collectively occupying almost half of the market. The key companies operating in this industry are Alliant Techsystems, Inc., Denel SoC Ltd., BAE Systems Plc, Diehl Stiftung & Co. KG, CBC Group, Hellenic Defense Systems S.A. (EBO-PYRKAL), Rheinmetall AG, General Dynamics, Nexter Group, MaxamCorp Holding, S.L., RUAG Holding AG, and Poongsan Corporation.

The giants of this industry are continually receiving huge contracts to manufacture large amount of ammunitions. General Dynamics received contract amounting to billions of dollars by the U.S. military to design and develop various ammunition components in the year 2011. Further, these major participants are targeting the strategic alliances and technological advancements in order to support them to sustain in the highly competitive market and assist minor players and new entrants in occupying a stable position in the global ammunition industry.

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Contact Details

Company Name: Transparency Market Research
Issued By: Mr. Atil
Phone: 866-552-3453
Address: 90 State Street, Suite 700,
City: Albany
State: New York
Zip: 12207
Country: United States
Website: Visit the website

Keywords : Ammunition Market, Global Ammunition Market,

by Mr. Atil (few years ago!)

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