Small Caliber Ammunition Global Market Report 2024

Small caliber ammunition encompasses projectiles of relatively modest diameters discharged from firearms, constituting a cartridge or a range of cartridges typically spanning from 22 MM to 30 MM. These ammunitions find utility across diverse pursuits, serving purposes such as hunting, self-defense, and sport shooting.

The primary calibers prevalent in the small caliber ammunition market include 5.56 mm, 7.62 mm, 0.50 BMG, 9 mm, among others. Specifically, the 5.56 mm caliber denotes ammunition designed for weapons intended to incapacitate adversaries. These bullets come in various compositions such as lead, copper, brass, and other materials. Small caliber ammunition caters to an array of firearms including pistols, rifles, and shotguns, utilized by various end-users encompassing military, homeland security, and law enforcement agencies.

The small caliber ammunition market research report is one of a series of new reports from The Business Research Company that provides small caliber ammunition market statistics, including small caliber ammunition industry global market size, regional shares, competitors with a small caliber ammunition market share, detailed small caliber ammunition market segments, market trends and opportunities, and any further data you may need to thrive in the small caliber ammunition industry. This small-caliber ammunition market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small caliber ammunition market size has grown steadily in recent years. It will grow from $9.99 billion in 2023 to $10.36 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. During the historical period, the expansion can be credited to several factors, including military modernization initiatives, global conflicts prompting heightened defense spending, increased demand from law enforcement agencies, higher rates of civilian firearm ownership, as well as the popularity of sport shooting and recreational activities. These elements collectively contributed to the growth observed within this timeframe.

The small caliber ammunition market size is expected to see steady growth in the next few years. It will grow to $11.79 billion in 2028 at a compound annual growth rate (CAGR) of 3.3%. The anticipated growth in the forecast period can be linked to several factors, notably global security concerns that spur heightened attention to counterterrorism operations. Additionally, the growth trajectory is influenced by evolving trends within the civilian firearms market, a rising engagement in shooting sports, and the growing demand for military and law enforcement training requirements. Key trends expected in the forecast period encompass a concentrated focus on training and simulation ammunition, a worldwide upsurge in defense budgets, strategic collaborations between industry players, an emphasis on minimizing environmental impact, and the development of customizable and modular ammunition systems. These trends collectively contribute to the projected growth within this period.

The anticipated rise in military spending is poised to act as a driving force behind the expansion of the small-caliber ammunition market in the foreseeable future. Military expenditure, defined as the financial resources a nation allocates for the development and maintenance of its armed forces and defense-related strategies, is crucial. The allocation of funds towards small-caliber ammunition within military budgets ensures that armed forces possess ammunition capable of precisely engaging targets with effective firepower, ultimately enhancing the efficiency of soldiers in battlefield scenarios. A concrete illustration of this trend is observed in June 2022, where the Office of the Parliamentary Budget Officer, an intergovernmental organization based in Canada, projected an increase in total military spending from $36.3 billion in 2022-2023 to $51.0 billion in 2026-2027. Consequently, the surge in military spending emerges as a significant catalyst for the growth of the small-caliber ammunition market.

The surging adoption of firearms for personal safety is anticipated to propel the expansion of the small-caliber ammunition market. Personal safety encompasses the measures individuals undertake to safeguard themselves from potential harm or threats, emphasizing both physical and emotional well-being. The small-caliber ammunition market contributes to the growing use of firearms for personal safety, providing individuals with tools that, when used responsibly, contribute to self-defense strategies and reinforce a sense of overall security. An illustrative example is noted in August 2023, where a survey conducted by the Pew Research Center, a US-based nonpartisan think tank, revealed a shift in Americans' reasons for firearm ownership. Despite relatively stable overall gun ownership rates since 2021, there is a noticeable increase in individuals citing personal protection as a major motive, with 72% emphasizing this in 2023 compared to 67% in 2017. This trend signifies a growing association between gun ownership and personal safety in recent years, thereby propelling the growth of the small-caliber ammunition market.

Investments in small-caliber ammunition emerge as a prominent and increasingly popular trend within the small-caliber ammunition market. Major companies operating in this sector have secured substantial contracts, reflecting a strategic focus on significant investments in the production of small-caliber ammunition. A notable example occurred in June 2022 when the U.S. Department of Defense (DOD), a government agency based in the United States, awarded a substantial $51.8 million for the modification of an existing contract. This funding was earmarked for the manufacturing of 5.56 mm, 7.62 mm, and .50 caliber ammunition. Additionally, in November 2020, the UK Ministry of Defense (MOD), a government department in the United Kingdom, granted a sizable contract of US$3.2 billion (£2.4 billion) for the supply of munitions. Termed the 'Next Generation Munitions Solution' (NGMS) contract, it encompasses the production of small-arms ammunition, mortars, medium-caliber gun rounds, and heavy artillery rounds.

Major players in the small-caliber ammunition market are strategically embracing partnerships to enhance supply security and improve interoperability for the countries involved. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefit and success. In a noteworthy development in March 2023, SAKO Ltd, a Finland-based company specializing in rifles, ammunition, and hunting accessories, forged a strategic partnership with the Finnish and Swedish Defence Forces. This collaborative effort facilitates cost-effective joint procurement, enhancing supply security and interoperability through the adoption of a standardized weapon system. With a diverse range of calibers and a commitment to replacing existing firearms, this collaborative initiative is poised to stimulate demand for small-caliber ammunition, presenting growth opportunities in both military and civilian sectors.

In November 2022, Czechoslovak Group, a Czech Republic-based defense machinery manufacturer, completed the acquisition of a 70% stake in Fiocchi Munizioni, an Italian firm renowned for its production of high-quality small-caliber ammunition. The undisclosed transaction aims to bolster CSG Group's small caliber ammunition portfolio, leveraging increased global reach and fresh investments in its current manufacturing facilities. Fiocchi Munizioni specializes in developing, manufacturing, and marketing premium small-caliber ammunition designed for hunting, shooting sports, and security applications.

Major companies operating in the small caliber ammunition market report are General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems PLC, Olin Corporation, Elbit Systems Ltd., Norma Precision AB, Remington Arms Company LLC, FN Herstal SA, Nammo AS, Denel SOC Ltd., Fiocchi Munizioni SPA, RUAG Holding AG, Savage Arms, Hornady Manufacturing Company, Nosler Inc., ARSENAL JSCO, Armscor Precision, Sellier & Bellot, Sierra Bullets LLC, Black Hills Ammunition, Barnes Bullets LLC, CBC Global Ammunition, Winchester Ammunition Inc., Liberty Ammunition Inc., PMC Ammunition, Estate Cartridge Inc., Wolf Performance Ammunition, Magtech Ammunition Company Inc., Aguila Ammunition, Prvi Partizan A.D.

North America was the largest region in the small caliber ammunition market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the small caliber ammunition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the small caliber ammunition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The small caliber ammunition market consists of sales of small projectiles, 62mm, and 7 mm calibers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Small Caliber Ammunition Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on small caliber ammunition market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for small caliber ammunition ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The small caliber ammunition market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Caliber: 5.56 MM; 7.62 MM; 0.50 BGM; 9 MM; Other Calibers
• 2) By Bullet Type: Lead; Copper; Brass; Other Bullet Types
• 3) By Gun Type: Pistols; Rifles; Shot Guns
• 4) By End-User: Military; Homeland Security; Law Enforcement Agencies
• Companies Mentioned: General Dynamics Corporation; Northrop Grumman Corporation; BAE Systems PLC; Olin Corporation; Elbit Systems Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.