The report on the Ammunition Market provides a detailed trend analysis from 2017 to 2026. It discusses industry and technology trends currently prevailing in the market, along with drivers, restraints, challenges, and opportunities that influence the growth of the market.
The global ammunition market size is projected to grow from USD 24.3 billion in 2021 to USD 29.1 billion by 2026, at a CAGR of 3.7% from 2021 to 2026. The market is driven by various factors, such as the changing nature of warfare, the militarization of police forces, the increasing incidence of drug trafficking, and terrorist activities, and the modernization of armed forces.
Based on caliber, the small caliber segment is projected to lead the ammunition market from 2021 to 2026. The growth of this segment can be attributed to increased use of small caliber ammunition by military and homeland security personnel, owing to less lethality of this ammunition. Increasing acceptance of NATO-grade calibers such as 5.56x45mm, 9x19mm Parabellum, 7.62x51mm and 12.7x99mm by armed forces and law enforcement agencies is also assisting the growth of this segment and would lead to revenue pockets for the ammunition suppliers.
Based on lethality, the lethal segment is projected to lead the ammunition market from 2021 to 2026. Lethal ammunition is developed to cause maximum damage to targets. Unlike less-lethal ammunition, these are used by soldiers, federal agents, and law enforcement officers. Lethal ammunition can also be used by individuals, subject to obtaining permits from the respective authorities. The market for lethal ammunition has witnessed significant growth over the last few decades due to increasing defense expenditure of countries and rising social unrest across the globe.
Based on guidance mechanism, the non-guided segment is projected to lead the ammunition market from 2021 to 2026. This ammunition is generally used by armed forces, law enforcement agencies, security forces, and sports & hunting enthusiasts. High demand for the conventional non-guided ammunitions by the armed forces globally is fueled the growth of the non-guided ammunition market segment.
Based on region, the North America region is expected to lead the ammunition market in 2021, by accounting for the largest share of the market. However, the Asia Pacific ammunition market is projected to grow at the highest CAGR during the forecast period. The North America and Asia Pacific regions have been identified as high-potential markets for ammunition due to increasing instances of asymmetric warfare in these regions in recent years. North America is also witnessing significant growth due to ongoing programs for the modernization and upgrade of ammunition to enhance combat capabilities of defense forces.