Ammunitions refer to a supply of actual munitions or exploding substances mounted in guns, cannons, launchers, and other platforms for launch and use. Countries procure ammunitions to justify their firepower and ensure the safety of a nation. In 2021, several vendors faced supply chain shortages, and some gun stores experienced a decline in demand during the pandemic period. The ammunition shortage was witnessed in commercial applications, whereas the ammunitions market for the defense segment witnessed growth.
The presence of a large number of buyers along with high demand for ammunitions products possesses low to the moderate bargaining power of buyers in the global ammunitions market. The rising ammunition prices due to ammunition shortages for commercial applications is one of the major restraining factors that is leading to the lower bargaining power of buyers in the market. Further, the rising military expenditures worldwide by different countries for the procurement of ammunitions is another major factor depicting higher investment capabilities in the market from the demand side.
Thales Group, Raytheon Technologies, Elbit Systems Ltd., Northrop Grumman Corporation, and BAE Systems –Prominent Market Participants in Ammunition Market
North America held the largest share in the global ammunition market in 2021. The presence of developed countries, such as the US and Canada, and the high focus on the defense sector are two major factors driving the growth of the ammunition market in North America. Due to the rising of smart weapons, artillery systems, mortar systems, guns, and other equipment in North America, the demand for ammunition for commercial and defense is relatively high. In the defense sector, the US is leading the ammunition market in the North American region. North America is also a hub of a few of the world’s largest weapon manufacturers, such as Raytheon Technologies Corporation, Northrop Grumman, General Dynamics Ordnance and Tactical Systems, Vista Outdoor Operations LLC, AMTEC Corporation, and others. Hence, the presence of weapon manufacturers and increasing ammunition production for defense operations due to increasing global demand are two major factors expected to drive the ammunition market growth in this region.
The top five companies in the ammunition market are Thales Group, Raytheon Technologies, Elbit Systems Ltd., Northrop Grumman Corporation, and BAE Systems. The above listing of key players is derived by considering multiple factors such as overall market insights, dynamic trends, revenue, current general aviation portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. A few of the important market initiatives and product developments from the industry are mentioned below:
| Year | News | Country |
| 2022 | BAE Systems is awarded a five-year contract extension for operations at the Radford Army Ammunition Plant with a ceiling value of up to US$ 1.3 billion by the U.S Army. The contract will be extended till Dec 2026. | Europe |
| 2022 | Elbit Systems awarded an approximately US$ 220 million contract to supply precision guidance kits for airborne munitions to a country in Asia-Pacific. The contract will be performed over 15 months. | MEA |
| 2022 | Vista Outdoor announced that its Board of Directors has unanimously approved a plan to separate its outdoor products and sporting products segments into two independent, publicly-traded companies. | North America |
