Global Commercial Small Caliber Ammunition Market to Grow at a (CAGR) of 1.9% during the Forecast Period 2022-2030

Sep-2022 | Aerospace & Defense

As specified in our exclusive report, the global Commercial Small Caliber Ammunition Market size is projected to reach USD 10.15 billion by 2030.   

Industry Growth Driving Factors:

Rising demand for weapons for self-defense, rising wars, conflicts, terrorist activities, and modernization in the procurement of defense products and services are some of the major drivers of growth of the global commercial small caliber ammunition market. The increase in the defense budget to address security concerns has increased the demand for ammunition from the defense sector. Due to the increase in the number of terrorist organizations, countries around the world have invested in significant military expenditure, which is expected to increase in the near future.

In addition, companies are introducing the latest technology weapons to the small caliber ammunition market which is gaining importance among defense end users due to the advantages of increased lethality. Several defense forces across the world have entered into contracts with various major manufacturers for the production of a specific range of small caliber ammunition.

What are the Challenges of the Global Commercial Small Caliber Ammunition Market?

Commercial small caliber ammunition is made from various raw materials, which are exported and imported from various countries; fluctuations in global prices of these materials are projected to reduce trade which is predicted to restrict production and use of these ammunitions. Additionally, stringent regulations and laws imposed by the government on their use for self-defense by citizens and difficulties in obtaining gun licenses are expected to hinder the market growth during the forecast period.

What are the Key Trends in the Global Commercial Small Caliber Ammunition Market?

Lighter, more lethal ammunition at longer ranges is also being developed through several new weapons and ammunition development programs. The rapid development of technology is helping such developments. Europe and the Asia-Pacific region, which are either replacing aging equipment or expanding their inventories to strengthen their armed forces, are key markets for advanced weapons and related ammunition.

Development of the Market:

March 2022: BAE Systems acquires military simulation firm for D200 million. The merger is intended to enhance BAE's ability to meet US defense policy requirements for joint, all-domain operations.

July 2022:  Northrop Grumman Corporation recently completed a preliminary design review for a high-energy laser prototype in which the U.S. There will be a scalable architecture of more than one megawatt for the Department of Defense. This review establishes the company's technical vision for precision, low-cost, motion-light technology for military operations.

Europe and North America have shown significant growth during the forecast period. Government policies in Europe include firearms ownership, the availability of firearms in the single market, and a protocol restricting the production and trafficking of firearms. The Middle East and Syrian refugee crises have also created difficulties for the European defense system. The threat of terrorism has also emerged in Europe and as a result, the ammunition market in Europe is estimated to grow over the forecast period.

Some of the key players in the commercial small caliber ammunition market are:

Aguila Ammunition (Mexico), Nammo AS (Norway), BAE Systems (UK), Northrop Grumman Corporation (US), Olin Corporation (US), Denel SOC Ltd (South Africa), General Dynamics Corporation (US), RAUG Group (Switzerland), Thales Group (France), Vista Outdoor, Inc. (the US), Remington Arms Company LLC (US), KNDS N.V. (France), Elbit Systems Ltd. (Israel).

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