Ammunition Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Small Caliber, Medium Caliber, Large Caliber), By Application (Defense, Civil & Commercial), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 32.27 Billion
CAGR (2026-2031)	4.11%
Fastest Growing Segment	Small Caliber
Largest Market	North America
Market Size (2031)	USD 41.09 Billion

Market Overview

The Global Ammunition Market will grow from USD 32.27 Billion in 2025 to USD 41.09 Billion by 2031 at a 4.11% CAGR. Ammunition constitutes a complete assembly of projectile, propellant, primer, and casing intended for discharge from a weapon system. The global market is fundamentally supported by intensifying geopolitical instability and the subsequent urgency for nations to modernize defense capabilities and replenish depleted strategic reserves. Additionally, sustained civilian interest in shooting sports and personal security contributes to baseline demand stability. Illustrating the significant financial scale of the sector in major regions, According to the 'National Shooting Sports Foundation', in '2024', the total economic impact of the firearm and ammunition industry in the United States reached $91.7 billion.

Despite this growth trajectory, the industry encounters a significant impediment in the form of raw material scarcity, particularly regarding nitrocellulose and specialized non-ferrous metals. These supply chain bottlenecks, often exacerbated by trade restrictions and competition for resources, limit production scalability and create price volatility. This logistical constraint presents a formidable challenge to manufacturers striving to fulfill the escalating global requirements for both defense and commercial ammunition.

Key Market Drivers

Escalating Geopolitical Tensions and Cross-Border Conflicts serve as the foremost catalyst for the global ammunition market's rapid expansion. The sustained intensity of warfare in Eastern Europe has fundamentally altered consumption rates, compelling nations to prioritize the immediate replenishment of depleted strategic reserves. This urgency has triggered massive multi-national procurement initiatives designed to secure long-term supply chains for critical artillery and small arms munitions. Illustrating this demand, according to NATO, January 2024, in the 'NATO concludes contracts for another $1.2 billion in artillery ammunition' press release, the alliance finalized agreements to purchase approximately 220,000 155-millimetre artillery shells to backfill allied arsenals and support ongoing defense operations.

Simultaneously, Increasing Global Defense Expenditures and Military Budget Allocations are driving substantial industrial modernization. Governments are not only purchasing finished rounds but are also directly funding the expansion of manufacturing infrastructure to overcome raw material bottlenecks and increase throughput. This financial injection aims to modernize production lines for higher efficiency and surge capacity. Supporting this driver, according to the European Commission, March 2024, in the 'The Commission allocates €500 million to ramp up ammunition production' press release, funding was distributed to projects aimed at increasing annual capacity to 2 million shells by the end of 2025. Underscoring the resultant revenue surges across the sector, according to Rheinmetall AG, in 2024, the company’s Weapon and Ammunition division recorded a 64% year-over-year sales increase during the first nine months.

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Key Market Challenges

Raw material scarcity, particularly regarding nitrocellulose and specialized non-ferrous metals, creates a severe production bottleneck that directly hampers the growth of the global ammunition market. Nitrocellulose is the fundamental component of smokeless gunpowder, and its current shortage restricts the manufacturing of propellants required for nearly all weapon systems. This unavailability forces manufacturers to throttle production lines despite escalating global demand, leading to significant order backlogs and extended delivery lead times. Consequently, the supply-demand imbalance drives up unit costs and creates price volatility, preventing producers from efficiently scaling operations to fulfill the urgent restocking needs of defense forces and commercial consumers.

The impact of this logistical constraint is magnified by the immense financial scale of the sector currently facing these headwinds. The inability to secure sufficient raw materials threatens to stifle the momentum of an industry that is otherwise experiencing historic financial expansion. Highlighting the significant market value at risk, According to the 'Aerospace, Security and Defence Industries Association of Europe', in '2024', the turnover generated by the European defense industry reached €183.4 billion. This statistic underscores the severity of the impediment; without a resolution to these material deficits, the market cannot fully capitalize on such substantial capital influxes or convert financial potential into delivered capability.

Key Market Trends

The Adoption of Precision-Guided and Smart Munitions is reshaping the market as military doctrines prioritize engagement efficiency and reduced collateral damage. This technological shift involves the proliferation of proximity-fuzed and guided projectiles capable of countering agile threats such as unmanned aerial systems. Defense forces are increasingly allocating funds to these sophisticated munition types to enhance the lethality of existing medium-caliber platforms without requiring entirely new weapon systems. According to Defence Industry Europe, December 2025, in the 'Northrop Grumman secures U.S. Army contract to produce XM1211 proximity-fuzed rounds' article, the company received a contract worth more than $200 million to produce medium-caliber ammunition equipped with proximity sensors designed for short-range air defense.

Concurrently, the Localization of Manufacturing for Supply Chain Resilience is emerging as a critical priority, driven by the vulnerabilities exposed during recent high-intensity conflicts. Nations are moving beyond simple procurement to establishing domestic or regional production capabilities, ensuring sovereign access to critical stockpiles independent of global logistics disruptions. This trend is formalized through long-term framework agreements that mandate local manufacturing and guaranteed surge capacity. According to Army Technology, May 2025, in the 'Swedish FMV, Nammo secure $186m small-calibre ammunition deal' article, the Swedish Defence Materiel Administration awarded Nammo a contract worth approximately $186 million that explicitly emphasizes security of supply and domestic production predictability for small-caliber munitions.

Segmental Insights

The Small Caliber segment represents the fastest-growing area within the global ammunition market due to heightened demand from military and law enforcement sectors. This expansion is largely propelled by rising geopolitical tensions and internal security concerns, which compel defense organizations to replenish stockpiles of standard service cartridges. Additionally, the modernization of infantry weaponry necessitates compatible ammunition, ensuring sustained procurement contracts. Expanding civilian interest in sport shooting and personal safety further amplifies this trend, creating a stable and high-volume requirement that outperforms other caliber categories in the current market landscape.

Regional Insights

North America maintains a dominant position in the Global Ammunition Market, primarily driven by substantial defense appropriations from the United States. The region benefits from a robust manufacturing infrastructure and consistent procurement by the U.S. Department of Defense to support military readiness and modernization programs. Additionally, the commercial sector contributes significantly to market leadership, fueled by widespread civilian participation in shooting sports, hunting, and personal defense. This unique combination of large-scale government contracts and a steady consumer base ensures North America remains the central hub for industry growth and innovation.

Recent Developments

• In October 2024, Northrop Grumman launched the M230LF Dual Feed Bushmaster Chain Gun, a new medium-caliber weapon system that introduces a technological advancement in ammunition management. This system features a dual-feed mechanism that allows operators to instantly switch between two distinct types of ammunition, such as proximity-fused rounds for aerial threats and high-explosive rounds for ground targets. By eliminating the need for mixed ammunition belts, this product enhances operational flexibility and logistical efficiency for armed forces. The launch highlights the company's focus on developing versatile solutions that optimize the effectiveness of medium-caliber munitions against diverse battlefield threats.
• In July 2024, Nammo secured a major long-term agreement with the Norwegian Defense Materiel Agency to substantially expand its manufacturing capacity for critical munitions. This collaboration, supported by government funding exceeding NOK 1 billion, is designed to establish new production lines for 155mm artillery shells, 120mm tank ammunition, and solid rocket motors for AIM-120 missiles. As part of this contract, the aerospace and defense company committed to maintaining this increased industrial capability for at least fifteen years. This expansion addresses the urgent demand from Allied forces, ensuring a more robust and sustainable supply chain for essential artillery and missile systems across Europe.
• In June 2024, Vista Outdoor announced a significant development regarding the sale of its ammunition division, The Kinetic Group, by entering into an amended merger agreement with Czechoslovak Group (CSG). The revised terms of this transaction involved an increase in the base purchase price by $40 million, elevating the total enterprise value to $2 billion. Consequently, the cash consideration payable to the company's stockholders was raised to $18.00 per share. This strategic move marked a critical step in the separation of the company's outdoor products and sporting products segments, with the Board of Directors reaffirming its recommendation for shareholders to vote in favor of the enhanced offer from the Czech industrial holding company.
• In February 2024, Rheinmetall entered into a strategic collaboration by signing a memorandum of understanding with a Ukrainian partner to establish a joint venture focused on artillery ammunition production. This initiative, formalized in the presence of the Ukrainian Minister for Strategic Industries, aims to construct a "Ukrainian Competence Center for Ammunition" capable of manufacturing a six-digit volume of 155mm caliber rounds annually. Under the terms of the agreement, the German defense contractor will hold a 51% majority stake in the new entity, ensuring the transfer of essential technology and expertise. This development underscores the company's commitment to strengthening Ukraine's domestic defense industrial base and securing a reliable supply of vital ordnance.

Key Market Players

• BAE Systems plc
• Rheinmetall AG
• Elbit Systems Ltd.
• KNDS N.V.
• General Dynamics Corporation
• Nammo AS
• RUAG Group
• Singapore Technologies Engineering Ltd
• Denel SOC Ltd
• Northrop Grumman Corporation

By Type	By Application	By Region
Small Caliber Medium Caliber Large Caliber	Defense Civil & Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Ammunition Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Ammunition Market, By Type:

• Small Caliber
• Medium Caliber
• Large Caliber

• Ammunition Market, By Application:

• Defense
• Civil & Commercial

• Ammunition Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE