Market Research Report
Service Handgun Market - Growth, Trends and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||649783|
|Published||Content info||70 Pages
Delivery time: 2-3 business days
|Service Handgun Market - Growth, Trends and Forecast (2020 - 2025)|
|Published: March 1, 2020||Content info: 70 Pages||
The Service Handgun Market is projected to grow with a CAGR of more than 2% during the forecast period.
Pistols Segment to Dominate the Market in the Years to Come
In segmentation by type, the Pistols segment is expected to have a larger market share in the service handgun market during the forecast period. Pistols generally have a larger bullet holding capacity of up to 17 rounds on a standard magazine, compared to revolvers, which have a very low bullet holding capacity. Also, pistols are more accurate compared to the revolvers. These are the main reasons for the greater preference of militaries and law enforcement agencies for pistols over the revolvers. With the existing military handguns of the Armies dating back to the cold war times, the armies are replacing those handguns to newer models. For instance In October 2019, the army of Portugal announced that it has selected Glock to supply special new Gen 5 G17 models to replace the country's dated Walther military handguns. The contract follows the NATO Support and Procurement Agency (NSPA) tender launched in early 2019 for the Walther replacement. Likewise, the .38-calibre Taurus revolvers, used by the Singapore Police Force (SPF) frontline officers are now being replaced by the semi-automatic pistols. This move is done to give the police officers more powerful and accurate firearms to tackle heightened security threats. Such procurement and related plans are the main reasons for a larger share of the segment.
North America has the Largest Share in the Market as of 2019
As of 2019, North America has the highest share in the Service Handgun Market, primarily due to the replacement contracts which were awarded to the handgun manufacturers. Much of the demand from the North America for the handguns is from the United States. The US has been the leading military spender in the world. The proposed Fiscal Year (FY) 2021 budget requested USD 740.5 billion for national security, out of which USD 705.4 billion is for the Department of Defense (DoD). The increase is expected to drive the implementation of new arms procurement programs, which are mainly focused at improving and upgrading the armed forces of the country. In addition, the country is also focusing on increasing the military end strength by 5,600 in FY 2021 from the FY 2020 projected levels. The US Army is replacing their age-old pistols with newer ones. In 2015, the US Army launched its long-awaited XM17 MHS competition to replace its Cold War-era M9 9mm pistol. Following this, in 2017, Sig Sauer was awarded a contract worth USD 580 million by the US Army to produce the Army's next service pistol based on the company's P320 handgun. As per the 10-year agreement, Sig Sauer will supply the Army with both the full-size and compact versions of the gun. Such procurement are driving the revenues for the market in North America currently. However, the market is projected to witness the highest growth rate in Europe region, due to the anticipated increase in the procurement of service handguns for the law enforcement agencies of several countries in the region. The increase in crime rates in France has influenced the government to arm all the local cops with guns. The country has already witnessed an increase in the usage of semi automatic pistols in the last three years. Such developments are expected to drive the growth of the market in Europe.
GLOCK Ges.m.b.H., SIG SAUER, Sturm, Ruger & Co., Inc, FN HERSTAL, and CZUB are some of the major players in the market. As most of the contracts awarded in the market comprises of large procurement with higher volumes, companies may be benefited by higher revenues per contract. At the same time, there is an intense competition between the players for service handguns contracts. Companies which provide durable products that pass every testing phase by the contracting agency will end up gaining long-term contracts in the market. In addition, ergonomics is also taken into consideration while selecting and finalizing a particular product. As such, the focus should be on building long-lasting, accurate, ergonomic products with high quality. Competitive pricing will also help the players in gaining new contracts, thereby enhancing their market share and market presence.