Ammunition Market to grow at a CAGR of above 2% from 2016 to 2024 - Hexa Research
According to a recent study by Hexa Research Inc., the global ammunition market was worth USD 12 billion in 2015. It is expected to grow at a CAGR of about 3% from 2016 to 2024 (forecast period).
Global ammunition market was worth USD 11.8 billion in 2015. It is anticipated to grow at a CAGR exceeding 2% from 2016 to 2024 (forecast period). Soaring military expenditures by various governments is the chief growth driver.
Countries such as China, India, Israel and the U.S. are implementing stockpiling and modernization programs. Mexico and Brazil are arming their police personnel with the latest weaponry. Upgrading military weapons requires higher allocation of funds for ammunition. This is expected to have a positive effect on market growth. Technological advancements such as smart weapons in developed regions could also propel the ammunition industry.
Browse Details of Report@
High expenditure on research & development of non-lethal ammunition such as beanbag rounds, wax bullets, rubber bullets, plastic bullets, etc. for use by the police force should fuel market demand. Surging demand for ammunitions will create new market segments in the coming years, owing to robust demand from personal security and riot control units. Popularity of hunting as a sport & leisure activity will drive the global market.
However, demand in developed nations is declining owing to insufficient defense budgets. The U.S. along with many European nations have taken steps to de-militarize themselves, in the aftermath of prolonged wars in Afghanistan and Iraq. This along with the global economic turmoil could inhibit market growth throughout the forecast period.
The global ammunition market can be segmented on the basis of products, applications, and regions. As per products, the ammunition market is divided into bullets, mortar, rocket and others. The segment for bullets reigned in 2015, holding over 54% of the total market share. This segment mainly includes small caliber bullets that are used in civil applications. Revolvers, pistols, rifles, and shotguns are the most common types of arms used for civil purposes. Emerging economies exhibit high demand for personal security from private end-users. Rockets and mortars are consumed by the defense and military.
Applications are either civil or defense. Civil applications include self-defense, law enforcement, and sports & hunting. They accounted for about 75% of the market revenue in 2015. Civil uses are deemed to grow at the fastest pace. This may be attributed to the escalating demand for small caliber products for sporting, hunting, and self-defense.
Main geographical segments include North America, Asia Pacific, Europe, Latin America and MEA (the Middle East & Africa). Asia Pacific was the largest regional market in 2015. It is likely to grow at a CAGR of 4.6% throughout the forecast period. Terrorist hot-spots such as India call for initiatives to strengthen the defense system. This will fuel the demand for ammunitions.
North America, particularly the U.S., should grow rapidly till 2024. This is primarily due to burgeoning demand in self-defense and shooting game applications. The U.S. is a large production hub and also a huge consumer of arms and ammunition. It accounts for 36% of the total global spending on weapons and ammunition. Civil unrest and conflicts in Libya and Syria are said to favor growth of the African market in the forthcoming period.
The worldwide ammunition market is greatly fragmented. A large number of participants are present in Europe and North America. Some of the prominent ones are Ruag Ammotech, Magtech Ammunition Co., BAE systems, Olin Corporation and Remington Arms Company Inc. The market is characterized by widespread mergers and acquisitions with an aim to stay competitive and ensure profitability. Consolidation also solidifies the market position of vendors.
Browse Related Category Market Reports@
Hexa Research is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.
Felton Office Plaza
6265 Highway 9
Felton, California 95018
Website - http://www.hexaresearch.com/
Follow us on Linkedin: https://www.linkedin.com/company/hexa-research
Advanced Interior Materials Market Research Report
Jan 05, 2017