Market Size of North America Ammunition Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Ammunition Market Analysis
The North American ammunition market is anticipated to register a CAGR of over 4% during the forecast period.
Although the COVID-19 pandemic affected the economy of the region, it did not diminish the sales of ammunition in the region during and after 2020. In fact, in the year 2020, when COVID-19 was at its peak, the United States military expenditure was USD 778.2 billion, a 5.98% increase from the previous year. From 2021, as the supply chain also began to reach its maximum recovery, the ammunition market further began to showcase its growth.
The rapid growth in military spending, with the increase in procurement of advanced land, sea, and air vehicles, and the development of technologically advanced systems are expected to drive the market during the forecast period. Also, the increasing investments in R&D for military modernization programs, for the procurement of the latest equipment to replace and upgrade the existing ammunition assets, is one of the major factors driving the market.
North America Ammunition Industry Segmentation
Ammunition refers to any explosive material that is fired or denonated from a weapon or weapon system. Common ammunition that are used in civil and military sectors are bullets, bombs, land mines etc.
The North America Ammunition market is segmented based on type and end user. Based on type the market is segmented into Small Caliber, Medium Caliber, and Large Caliber. Based on end user the market is segmented into Civilian and Military. The civilian segment encompasses homeland security, local law enforcement agencies, and licensed civilian users, while the military segment includes the army, navy, and air force.
The scope of the report is exclusive of non-lethal ammunition, such as rubber bullets, wax bullets, plastic bullets, bean bag rounds, and sponge grenades.
| Type | |
| Small Caliber | |
| Medium Caliber | |
| Large Caliber |
| End User | |
| Civilian | |
| Military |
| Geography | ||||
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North America Ammunition Market Size Summary
The North American ammunition market is poised for steady growth, driven by increased military spending and advancements in technology. Despite the economic challenges posed by the COVID-19 pandemic, ammunition sales remained robust, with the United States significantly boosting its military expenditure. This trend is expected to continue as the region invests in advanced military vehicles and systems, alongside research and development for military modernization. The military segment dominates the market, fueled by the need for enhanced procurement by armed forces and security agencies to address terrorism, territorial disputes, and geopolitical tensions. The demand for ammunition systems is further bolstered by orders from NATO and other defense collaborations, highlighting the strategic focus on border protection and military readiness.
In the United States, the ammunition market is anticipated to grow consistently, supported by substantial military investments and technological innovations. The U.S. Army's development of advanced resupply systems, such as GPS-guided mortar shells, exemplifies the ongoing technological advancements driving market expansion. Prominent industry players like BAE Systems, General Dynamics, Northrop Grumman, Rheinmetall AG, and Nexter Group are actively enhancing their offerings to capture greater market share. These companies are focusing on designing more lethal ammunition and engaging in strategic partnerships to advance ammunition technology. Local manufacturing support from governments further strengthens the market position of these companies, ensuring they meet the demands of armed forces and law enforcement agencies effectively.
North America Ammunition Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Small Caliber
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2.1.2 Medium Caliber
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2.1.3 Large Caliber
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2.2 End User
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2.2.1 Civilian
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2.2.2 Military
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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North America Ammunition Market Size FAQs
What is the current North America Ammunition Market size?
The North America Ammunition Market is projected to register a CAGR of 4% during the forecast period (2024-2029)
Who are the key players in North America Ammunition Market?
BAE Systems plc, General Dynamics Corporation, Nexter Group KNDS, Northrop Grumman Corporation and Rheinmetall AG are the major companies operating in the North America Ammunition Market.
