Yahoo Finance Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product, Application, Guidance, Lethality, and Caliber [Small Caliber Ammunition, Medium Caliber Ammunition, and Large Caliber Ammunition ]
The Ammunitions market is expected to grow from US$ 43. 04 billion in 2022 to US$ 69. 75 billion by 2028; it is estimated to grow at a CAGR of 8. 4% from 2022 to 2028. Europe is expected to account for second largest share in the ammunitions market analysis in 2022.
New York, Sept. 27, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Ammunition Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product, Application, Guidance, Lethality, and Caliber [Small Caliber Ammunition, Medium Caliber Ammunition, and Large Caliber Ammunition ]" - https://www.reportlinker.com/p06321012/?utm_source=GNW
The ammunition market players in this region are concentrating their efforts on the development of advanced ammunitions, such as precision-guided missiles and mortars.
European countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking.The presence of ammunitions market players such as Nammo AS, Nexter Group, Rheinmetall AG, Rostec State Corporation, Thales Group, and many others, are catering to the demand across European region.
The presence of such leading ammunitions market players has paved the growth path for companies producing aerial bombs, grenades, artillery shells, mortars, and others. Moreover, the rising inclination of manufacturers toward the production of artillery systems, mortar systems, guns, smart weapons, and other equipment is propelling the ammunitions market growth in Europe.
The Russian arms/ammunition industry is one most significant in the world, as its ammunitions are less expensive and easier to maintain than the available alternatives.The country ranked second and accounted for 19% of global ammunition exports during 2017–2021.
However, ammunition manufacturing in Russia depends on various international raw material and component suppliers.Thus, due to supply chain disruptions, Russia is expected to lose its position to various arms/ammunition manufacturers such as China, India, Turkey, and a few of European countries.
Moreover, the invasion of Russia into Ukraine has been encouraging governments of other countries to offer order contracts to regional or domestic manufacturers.China and India, apart from the US, are foreseen to gain from Russia’s loss in terms of arms/ammunition manufacturing and exports.
As Russia’s major arms/ammunition customers include Vietnam, Myanmar, Indonesia, and Malaysia, the decline in production volume from Russian manufacturers would compel their governments to purchase from China or India.
Impact of COVID-19 Pandemic on Global Ammunitions Market
During the COVID-19 pandemic, the firearm & ammunition industry has witnessed a significant rise in the procurement of ammunition and firearms from commercial and defense applications.The pandemic caused a shortage of raw materials such as primers, casings, and power.
Moreover, the unprecedented demand for ammunitions during the pandemic has caused a shortage of ammunitions across the countries such as the US, China, and other major military spending countries.Further, the shortage did not hamper the supplies for the defense side as these supplies were contract-based transactions.
However, the commercial aspects of the ammunitions market witnessed tremendous shortages due to an increase in the demand for ammunition and the lack of production capacity of manufacturers. Further, the rise in firearms purchases across the US has increased the sudden demand for procuring ammunition, which has caused a shortage of ammunition across the country.
Vendors did not take any major initiatives to boost their production capacities because increasing their production capacity to meet the current demands may hamper their future operations; unfavorable conditions can drastically hamper profits and operational costs if the demand drops down in the future due to any unknown reason. Hence, the shortage of ammunitions is hindering the ammunitions market growth across different regions.
The ammunitions market in Asia Pacific is anticipated to expand at the highest CAGR throughout the forecast period.A rise in geopolitical tensions and increase in terrorist attacks are the major factors contributing to the market growth in this region.
Pakistan–India, China–India, China–Taiwan, and China–Japan are among the major conflicts in Asia Pacific, which are bolstering the demand for ammunition over the years.China and India are investing in the modernization of their military forces.
These countries are purchasing ammunitions for their armed forces and law enforcement agencies (to curb domestic crime rates). Furthermore, the presence of well-established ammunition manufacturers—such as Kongsberg Defense Australia, HIFaser, Thales Australia, Yantra India Limited, and Munitions India Limited—in China, India, Australia, and Japan, among others, is anticipated to drive the growth of the ammunitions market in Asia Pacific in the coming years.
Cross-border conflicts have also led to an increase in spending for ammunition procurement across European countries.For instance, countries such as Germany and Belgium have already announced their intentions to double their defense spending in 2023, which would be utilized for their national security operations.
Moreover, the ongoing war between Russia and Ukraine is also raising concerns related to national security in different European countries, which is further expected to catalyze the ammunitions market growth this region in the next few years.
Northrop Grumman Corporation, BAE Systems, Elbit Systems Ltd, Raytheon Technologies Corporation, Vista Outdoor Operations LLC, AMTEC Corporation, NAMMO AS, Rheinmetall AG, RUAG Group, and Thales Group are among the major players operating in the ammunitions market. Moreover, Nexter Group KNDS, General Dynamics, Spectra Technologies LLC, CBC Global Ammunition, FIOCHHI MUNIZIONI SPA, Denel SOC Ltd., Sako Limited, Berger Bullets, NonLethal Technologies Inc., Cutting Edge Bullets, Sierra Bullets, Belom, and Combined Systems Inc. have also been analyzed during the ammunitions market analysis to get a better and holistic view of the market. These companies adopt different organic and inorganic growth strategies to expand their product portfolios and global presence across the ammunitions market.
The overall ammunitions market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the ammunitions market size.
The process also serves the purpose of obtaining an overview and forecast of the ammunitions market growth with respect to all market segments.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic.
Participants of this process include VPs, business development managers, intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the ammunitions market.
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