Market Research Report
Small Caliber Ammunition Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||597239|
|Published||Content info||105 Pages
Delivery time: 2-3 business days
|Small Caliber Ammunition Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 105 Pages||
The small caliber ammunition market is anticipated to register a CAGR of over 3% during the forecast period.
The Military Segment Accounted for a Major Market Share in 2018
The military segment currently dominates the market studied, and it is expected to continue its domination, in terms of market share, over the forecast period. This is due to the increase in procurement of ammunition by the armed forces, local enforcement agencies, and border security forces to subdue the threats arising, due to terrorism, territorial conflicts, and geopolitical tensions. For instance, to modernize their infantry, the Defense Ministry of India placed an order for 72,400 assault rifles to the US firm Sig Sauer of worth USD 100 million. This order was placed in February 2019 to replace the INSAS rifles. Such procurements are expected to generate demand for small caliber ammunition during the forecast period.
The Asia-Pacific Region is Expected to Experience the Highest Growth During the Forecast Period
The Asia-Pacific region currently has the highest market share and is anticipated to have the highest growth during the forecast period. The current political tensions between countries, like China, India, Japan, and Pakistan, along with the shortage of military personnel in Japan and India, are some of the major drivers that propelling the growth of the small caliber ammunition market over the forecast period. For instance, as of July 2018, Indian Army had a shortage of over 7,000 officers and Indian Air Force had a shortage of approximately 200 officers; as of October 2018, Indian Navy had a shortage of about 1,500 officers. The plans to recruit new military personnel may generate demand for arms and ammunition, which in turn, may generate demand in the small caliber ammunition market during the forecast period.
The small caliber ammunition market is moderately fragmented, due to the presence of several players. Some of the prominent players in the small caliber ammunition market are Northrop Grumman Corporation, General Dynamics Corporation, BAE Systems plc, RUAG Group, and Winchester Ammunition (Olin Corporation). However, the growing indigenous manufacturing of ammunition in various countries, like Saudi Arabia, Turkey, India, China, and Russia, among others is helping the local players to take significant share in the market over the forecast period. Rostec, a Russia-based defense company, announced that it may begin the serial production of NATO caliber rounds of ammunition in 2022. Such increasing manufacturing capabilities of local players are expected to increase their market share.