Small Caliber Ammunition Market Size (2021-2031)
The small caliber ammunition market size is projected to reach US$ 13.19 billion by 2031 from US$ 6.76 billion in 2023. The market is expected to register a CAGR of 8.7% during 2023–2031. Adoption of new squad automatic rifle by military forces is likely to remain a key trend in the market.
Small Caliber Ammunition Market Analysis
The key players in the small caliber ammunition market include General Dynamics Ordnance and Tactical Systems, Thales Group, Northrop Grumman Corporation, BAE Systems, and Vista Outdoor. The ranking has been analyzed on the basis of product portfolio, annual segmental revenues, brand image, and contracts, among other parameters. These companies are actively participating in continuous development of different types of small caliber ammunitions. In addition, these players invest substantial capitals in respective R&D teams to design and develop small caliber ammunitions that meet the demands of military, homeland security, law enforcement, and weapon manufacturers. Owing to this, the players mentioned in the figure are the key contractors among the global weapon manufacturers and end users, which help them to generate higher revenues year on year through small caliber ammunitions.
Small Caliber Ammunition Market Overview
Key stakeholders in the small caliber ammunition market include raw material suppliers, small caliber ammunition manufactures, and end users. The raw materials used in production of small caliber ammunition include chemical energy substance (nitrocellulose and black gunpowder components), metals, and shells. The availability of large number of raw material suppliers enables the small caliber ammunitions market players to choose the appropriate supplier. This enhances the supply chain of the small caliber ammunition industry. Upon procuring raw materials, the small caliber ammunition market players produce significant volumes of small caliber ammunition with varied calibers, thereby, meeting respective customer demands. The end users in the small caliber ammunitions market include law enforcement agencies and military.
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Small Caliber Ammunition Market: Strategic Insights
Market Size Value in US$ 5,923.61 Million in 2020 Market Size Value by US$ 10,241.57 Million by 2028 Growth rate CAGR of 7.5% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Small Caliber Ammunition Market: Strategic Insights
| Market Size Value in | US$ 5,923.61 Million in 2020 |
| Market Size Value by | US$ 10,241.57 Million by 2028 |
| Growth rate | CAGR of 7.5% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Small Caliber Ammunition Market Drivers and Opportunities
Need of Modernizing Military Operations with Rapid Changes in Warfare
Rapid changes in modern warfare are urging governments of different countries to allocate higher amounts toward respective military forces. The forces are focusing on caliber sizes such as 7.62 mm for attaining greater projectile ranges, as the existing calibers such as 5.56 mm are becoming ineffective in piercing tougher armors. The military budget allocation enables the military forces to engage themselves in the development of robust indigenous technologies alongside procuring advanced weapons, ammunition, vehicles, and other equipment from domestic and international manufacturers. Moreover, the solider and military vehicle modernization practices help them keep their personnel and vehicles mission-ready. The increased military investments are being channelized toward the procurement of newer technologies, including different types of ammunition, which is boosting the growth of the small caliber ammunitions market.
Surge in Demand for Small Arms Ammunition in Developing Countries
The rising terrorist attacks and political instability among various developed and developing countries is increasing the defense and homeland security forces to increase their procurement of advanced solutions such as radar systems, communication systems and anti-drone technologies amongst others. For instance, the department of defense of US, European Union and other authorities like Indian defense ministry has increased their spending on the procurement of anti-drones over the years. This is leading the small caliber ammunition manufacturers to adopt organic and inorganic growth strategies, such as high investments, product offerings, and global expansion, further creating growth opportunities for the global small caliber ammunition market.
Small Caliber Ammunition Market Report Segmentation Analysis
Key segments that contributed to the derivation of the small caliber ammunition market analysis are ammunition size, end user, and gun type.
- Based on ammunition size, the small caliber ammunition market is segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, .338mm, .22LR, 223 REM, .308 Winchester, and Others. The 9mm segment held a larger market share in 2023.
- Based on end user, the small caliber ammunition market is segmented into military, homeland security, and law enforcement agencies. The military segment held a larger market share in 2023.
- Based on gun type, the small caliber ammunition market is segmented into pistols, rifles, and shot guns. The pistols segment held a larger market share in 2023.
Small Caliber Ammunition Market Share Analysis by Geography
The geographic scope of the small caliber ammunition market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
North America has dominated the market in 2023 followed by Europe and Asia Pacific regions. Further, Asia Pacific is also likely to witness highest CAGR in the coming years. The US accounted for major share in the North American small caliber ammunition market. The US contributes to the world’s largest military expenditure and has the largest army size, spends significantly on the procurement of ammunition due to its widespread operations inside the US and in other countries. This contributes to the growing demand for ammunitions in the country. In addition, the country’s army is deployed in various foreign locations for peacekeeping operations as a part of NATO forces that further adds to the rising demand. Moreover, the US Army’s involvement in the operations such as Iraq and Afghanistan and ownership of more than a dozen plants that manufacture ammunition, ammunition components, and other ordnance materiel such as gun tubes and gun mounts has bolstered the expenditure on ammunition since the last decade. Also, the US Army is planning to adopt 6.8mm weapons and has chosen General Dynamics-OTS Inc., AAI Corporation Textron Systems, and Sig Sauer Inc. to deliver prototypes of both the automatic rifle and rifle versions of the Next Generation Squad Weapon (NGSW) and hundreds of thousands of rounds of special 6.8 mm ammunition. Furthermore, the US Army had awarded a major long-term contract worth US$194 million in 2019 to Alliant Techsystems Operations LLC to supply small caliber ammunition for the next ten years and to modernize and operate its Lake city Army Ammunition Plant, thereby driving the market growth.
Small Caliber Ammunition Market Report Scope
Small Caliber Ammunition Market News and Recent Developments
The small caliber ammunition market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the small caliber ammunition market are listed below:
- Colt CZ Group SE (“Colt CZ”, the “Group” or the “Company”) hereby announces that on December 18, 2023, it executed an agreement with CBC Europe S.à r.l. (“CBC”) to purchase 100% interest in Sellier & Bellot a.s. (“Sellier & Bellot”). (Source: Colt CZ Group SE, Press Release, Dec 2023)
- Czechoslovak Group (CSG) acquired 70% stake in Fiocchi Munizioni, a global leader in premium and super premium small caliber ammunition wherein CSG will partner with other stakeholders and continued growth path envisaged for Fiocchi Munizioni. (Source: Czechoslovak Group, Press Release, Nov 2022)
Small Caliber Ammunition Market Report Coverage and Deliverables
The “Small Caliber Ammunition Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Small caliber ammunition market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Small caliber ammunition market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed porter’s five forces analysis
- Small caliber ammunition market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the small caliber ammunition market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Ammunition Size , End User , Gun Type , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
North America region dominated the small caliber ammunition market in 2023.
Rising investments by homeland security and law enforcement departments for procurement of small caliber ammunition and need of modernizing military operations with rapid changes in warfare are some of the factors driving the growth for small caliber ammunition market.
Adoption of new squad automatic rifle by military forces is one of the major trends of the market.
General Dynamics Ordnance and Tactical Systems, Thales Group, Northrop Grumman Corporation, BAE Systems Plc, Vista Outdoor Inc, CBC Global Ammunition, NAMMO AS, Remington Ammunition, Elbit Systems Ltd, FN Herstal, Winchester Ammunition, and Denel PMP are some of the key players profiled under the report.
The estimated value of the small caliber ammunition market by 2031 would be around US$ 13.19 billion.
The small caliber ammunition market is likely to register of 8.7% during 2023-2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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