Private customers contribute to the larger share of the global ammunition production industry. A recent research report suggests that they were the primary customers of the major ammunition production within the first two decades of the 21st century. Growth in the number of first time gun buyers also contributed to the rising demand in the ammunition market. However, apart from the private customers, the industry is also aiming to achieve a strong rise in demand from different emerging markets and defense segments of the world. Growing applications and technological advancements in this field are expected to create better business opportunities in the global market. Developed countries are serving as the biggest clients for these products owing to their efforts to consolidate their military and homeland security sectors. As a result, key established players in the market are eying at business expansion across different parts of the world.
Scope of Research – Segmentation
Researchers segment the global ammunition market into different types of ammunition, which include medium, large and small caliber ammunition, mortar and artilleries. These types are used across airspace, naval and armed forces. Major stakeholders in the global market include armed services, ammo manufacturers and defense ministries from around the world. Major geographic segments of the market include Europe, North America, Asia Pacific, Russia, Middle East and Africa and Latin America. Analysis of all these segments provides details about the current market trends, projected growth prospects and challenges in the industry for both small and large players. Technological advancements, recent conflicts and increased attention from the global governments are expected to create strong growth opportunities for the existing players in the ammo industry.
Market Drivers and Restraints
The global ammunition market is strongly driven by three major drivers, which include:
- Modernization programs across the world
- Rising expenditure on ammos by Middle East, Asia, and Russia
- Increasing armed conflicts around the world
Despite these driving factors, researchers expected certain factors creating hindrances in healthy growth of the market. These restraining factors include heavy budget cuts on military and defense, especially in United States of America and Europe and re-exports of surplus ammunition. Meeting exact customer needs, challenging technology and manufacturing and lack of new investments are also hindering healthy growth of the ammunition industry. However, rising demand from the emerging regions and standardization of the weapon systems are expected to create business opportunities, according to the experts.
According to the latest reports, the global ammunition market is set to make a steady growth at a projected CAGR of over 4%. At the estimated growth rate from 2013 to 2020, the industry is anticipated to become worth more than $12 billion by the end of the year 2020. According to the research, Asia Pacific is currently contributing to the strongest growth of the market in terms of CAGR and demand. Middle East region is also expected to witness strong rise in demand and revenue, during the forecasting period.