Europe & CIS Large Caliber Ammunition Market By Caliber Type (40 - 60 mm, above 60mm), By End User (Naval Forces, Ground Forces), By Country, By Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Europe & CIS Large Caliber Ammunition Market was valued at USD 843.96 Million in 2024 and is expected to reach USD 1354.21 Million by 2030 with a CAGR of 8.20% during the forecast period. The Europe & CIS large caliber ammunition market is witnessing steady growth fueled by continuous modernization of military forces, increasing procurement of advanced weaponry systems, and rising demand for artillery and tank ammunition. Defense forces are prioritizing heavy firepower to ensure strategic superiority in modern combat scenarios, thereby driving procurement of 105mm, 120mm, 125mm, and 155mm caliber rounds. Governments are focusing on replacing aging stockpiles with new-generation munitions that offer higher precision, improved range, and enhanced lethality. Integration of smart technologies into large caliber shells, such as guided projectile systems and programmable fuzes, is reshaping the competitive landscape and aligning with next-generation warfare requirements.

Technological advancements in ammunition manufacturing are pushing the boundaries of design, with a focus on weight reduction, environmental sustainability, and interoperability with automated artillery platforms. Innovations such as extended-range artillery rounds and sensor-fused munitions are increasing operational flexibility for armed forces. Growing emphasis on joint training exercises and multinational procurement programs is also accelerating demand for standardized, NATO-compatible large caliber ammunition. Defense industries are forming cross-border partnerships for technology transfer and co-production to strengthen supply chain resilience and reduce dependency on single-source suppliers. These developments are creating opportunities for both legacy ammunition producers and emerging defense technology firms.

Despite this momentum, the market faces several challenges, including fluctuating raw material prices, regulatory constraints on arms exports, and the complexity of integrating advanced ammunition into legacy platforms. Stringent safety and testing protocols extend development timelines, while rising production costs put pressure on defense budgets. Supply chain disruptions and limited domestic production capacities in some regions hinder timely fulfillment of large-scale orders. Furthermore, competition from alternative firepower technologies, such as drones and precision strike missiles, poses a long-term threat to traditional large caliber systems. Addressing these constraints will be essential to unlocking the full potential of the Europe & CIS large caliber ammunition market.

Market Drivers

Defense Modernization Initiatives

Defense modernization efforts are propelling the demand for large caliber ammunition. Armed forces are upgrading artillery systems, tanks, and naval platforms, necessitating compatible and advanced ammunition. This modernization includes the integration of smart technologies into ammunition, enhancing precision and effectiveness on the battlefield. The push for modernization ensures that military capabilities remain robust and responsive to evolving threats. Militaries are shifting focus from sheer volume to performance-oriented munitions, requiring high-quality, precise, and interoperable rounds. Procurement strategies now favor ammunition that can be networked with fire control systems and targeting solutions. Future military doctrine is expected to rely heavily on integrated firepower, where advanced large caliber munitions play a central role. This transformation is strengthening long-term procurement pipelines and encouraging continuous innovation in the industry. For instance, in 2023, global military spending surged to a record-breaking $2.4 trillion, marking a 3.7% year-on-year increase—the highest annual rise since 2009. According to the Stockholm International Peace Research Institute (SIPRI), this increase reflects growing investments in defense amid geopolitical tensions and widespread insecurity. Europe experienced the sharpest rise in spending, with a 13% growth, driven largely by countries responding to the ongoing war in Ukraine. The United States, maintaining its position as the largest defense spender, accounted for 39% of global expenditure, while China followed with a 13% share.

Technological Advancements in Ammunition

Technological progress is revolutionizing large caliber ammunition. The development of smart ammunition equipped with sensors and guidance systems allows for greater accuracy and reduced collateral damage. Innovations such as programmable fuzes and extended-range projectiles are enhancing operational flexibility. These advancements are critical in meeting the demands of modern warfare, where precision and adaptability are paramount. Integration with artificial intelligence and targeting algorithms is improving mission outcomes while minimizing waste. Electronic navigation within projectiles now enables mid-course correction and variable impact profiles. Continuous R&D investment is expanding the tactical range and reliability of these munitions. The evolution of hybrid warfighting tactics further necessitates tech-enabled ammunition to meet diverse battlefield conditions.

Increased Defense Spending

Rising defense budgets are a significant driver for the large caliber ammunition market. Governments are allocating more funds to enhance military capabilities, including the procurement of advanced ammunition. This financial commitment supports research and development, production, and acquisition of sophisticated munitions, ensuring that armed forces are well-equipped to handle various security challenges. Increased budget allocations allow militaries to maintain strategic stockpiles and reduce dependency on imports. Long-term procurement contracts are stabilizing the ammunition supply chain and encouraging investment in modern facilities. Funding is also being directed toward testing facilities and simulation platforms to support ammunition development. Stronger fiscal backing enables the rapid deployment of upgraded artillery units on a scalable basis.

Focus on Homeland Security and Counterterrorism

The emphasis on homeland security and counterterrorism measures is boosting the demand for large caliber ammunition. Security forces require reliable and effective munitions to address threats and maintain public safety. The need for readiness in various scenarios, including urban warfare and border security, underscores the importance of having a robust supply of large caliber ammunition. These missions often require enhanced lethality and controlled blast effects to minimize collateral damage. Rapid response operations depend on dependable, pre-stocked munitions tailored for short-notice deployment. Governments are equipping paramilitary and border forces with tank and artillery systems to address internal threats. This evolving threat landscape ensures consistent demand for large caliber solutions outside conventional warfare.

Strategic Military Alliances and Joint Exercises

Participation in strategic military alliances and joint exercises necessitates the standardization and interoperability of ammunition. Countries involved in such collaborations are investing in compatible large caliber munitions to ensure seamless operations. These alliances often lead to shared procurement and development programs, further driving the market for standardized ammunition solutions. Harmonization of calibers and logistics procedures supports multi-national joint operations across theaters. Shared R&D efforts between partner nations foster innovation and lower production costs. Joint exercises create real-time demand surges for practice and evaluation rounds. These cooperative frameworks enable synchronized upgrades and fleet integration across allied defense forces.

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Key Market Challenges

Stringent Regulatory Compliance

The production and distribution of large caliber ammunition are subject to strict regulations. Compliance with international arms control agreements and export controls can be complex and time-consuming. These regulatory frameworks can delay project timelines and increase operational costs for manufacturers, posing a significant challenge in the market. Export licensing restrictions often prevent rapid shipment of large volumes during emergencies. Changes in political regimes or foreign policy can suddenly shift compliance requirements. Vendors must invest heavily in legal counsel and documentation to navigate compliance landscapes. Smaller manufacturers often struggle to meet these obligations, limiting their participation in global tenders.

High Production and Development Costs

Developing large caliber ammunition involves substantial investment in research, specialized materials, and manufacturing processes. The high costs associated with production can be a barrier for new entrants and can limit the ability of existing players to scale operations. Economic fluctuations and budget constraints further exacerbate this challenge, impacting the overall growth of the market. Cost-per-shot increases for guided or specialty rounds often deter bulk orders. Capital expenditures for modern production lines are recouped only through sustained high-volume contracts. Competitive pricing pressures from international suppliers force local vendors to absorb losses. This cost dilemma limits product diversity and market flexibility.

Environmental Concerns and Sustainability

The environmental impact of ammunition production and usage is a growing concern. Issues such as soil and water contamination from heavy metals used in munitions are prompting calls for more sustainable practices. Manufacturers are under pressure to develop eco-friendly alternatives, which can involve significant research and adaptation of existing production methods. New regulations demand rigorous environmental impact assessments for every ammunition product. Disposal of spent casings and unexploded ordnance remains a serious liability. Public perception of military pollution is increasing scrutiny over traditional ammunition practices. Long-term sustainability efforts must balance tactical performance with ecological responsibility.

Supply Chain Vulnerabilities

The large caliber ammunition market is susceptible to supply chain disruptions. Dependence on specific raw materials and components can lead to bottlenecks, especially during geopolitical tensions or global crises. Ensuring a resilient and diversified supply chain is essential to maintain consistent production and meet demand. Rare metals used in fuzes and casings often originate from limited geographies. Transport delays, labor shortages, or trade embargoes can halt production for months. Supplier concentration in a few countries raises risks for long-term procurement planning. Strategic stockpiling and regional sourcing are emerging as mitigation strategies.

Competition from Emerging Technologies

Advancements in alternative military technologies, such as precision-guided missiles and unmanned systems, present competition to traditional large caliber ammunition. These emerging technologies offer different tactical advantages, potentially reducing the reliance on conventional munitions. The market must adapt by integrating new technologies and demonstrating the continued relevance of large caliber ammunition in modern warfare. Drones offer real-time strike capabilities without the logistical burden of heavy artillery. Multi-role missile platforms are being prioritized for rapid deployment missions. Defense budgets are increasingly diverted to next-gen tech at the expense of traditional munitions. Maintaining relevance requires significant innovation and repositioning in doctrine.

Key Market Trends

Integration of Smart Technologies

The incorporation of smart technologies into large caliber ammunition is a prominent trend. Features like GPS guidance, data links, and programmable fuzes enhance the precision and adaptability of munitions. This trend reflects the broader move towards digitization and network-centric warfare, where real-time data and precision are critical. Smart rounds are also equipped with delay and proximity detonation settings for complex targets. Integration with battlefield management systems is transforming artillery into precision tools. Interoperability with UAVs and ISR platforms is improving strike coordination. The smart munitions segment is seeing fast adoption across both offensive and defensive missions.

Development of Eco-Friendly Ammunition

Environmental sustainability is influencing ammunition development. Manufacturers are exploring lead-free and biodegradable materials to reduce ecological impact. This shift not only addresses environmental concerns but also aligns with regulatory requirements and public expectations for greener military practices. Efforts include propellant optimization to lower toxic emissions during firing. Water-soluble packaging and casings are being tested for training rounds. Biodegradable components are improving the environmental footprint in peacetime operations. Sustainability-focused ammunition is gaining interest in peacekeeping and border patrol forces.

Emphasis on Lightweight and Modular Designs

There is a growing demand for lightweight and modular ammunition systems. Such designs facilitate easier transportation and adaptability across different platforms. This trend supports rapid deployment and logistical efficiency, which are crucial in modern military operations. Modular shell bodies allow for interchangeable warheads and fuzing options. Lightweight designs improve mobility for artillery crews and automated systems. New packaging methods are reducing volume per round, optimizing storage. Adaptable designs are especially suited for multinational operations requiring standardized configurations.

Increased Use of Simulation and Training Ammunition

The use of simulation and training ammunition is on the rise. These munitions allow for realistic training scenarios without the risks associated with live ammunition. Investing in training solutions ensures that personnel are well-prepared, contributing to overall operational readiness. Practice rounds with low-cost kinetic profiles replicate battlefield experience. Simulated detonation feedback enhances tactical accuracy in exercises. Virtual-reality-enhanced training environments are using sensor-equipped dummies. Increased training budget allocations are pushing demand for non-lethal and cost-effective practice rounds.

Expansion of Collaborative Development Programs

Collaborative development programs between nations and defense companies are becoming more common. These partnerships aim to share technological expertise, reduce costs, and standardize ammunition across allied forces. Such collaborations enhance interoperability and strengthen defense capabilities collectively. Joint research initiatives are fostering cross-border innovation pipelines. Shared intellectual property frameworks are reducing time to market. Co-production models are helping allies achieve self-reliance in ammunition supply. Collaboration is also enabling coordinated response capabilities in real-time combat theaters.

Segmental Insights

Caliber Type Insights

In 2024, the “Above 60mm” caliber segment dominated the Europe & CIS large caliber ammunition market, driven by its extensive application across heavy artillery systems, main battle tanks, and self-propelled howitzers. This segment’s prominence is tied to its critical role in high-intensity combat scenarios that demand long-range firepower, greater armor penetration, and destructive impact. The strategic emphasis on deep strike capabilities and territorial defense has elevated the demand for above 60mm rounds, particularly in formats like 105mm, 120mm, and 155mm. These calibers are capable of engaging fortified enemy positions and supporting infantry advances over extended distances, which has become essential in modern battlefield tactics. Their compatibility with both towed and self-propelled artillery platforms enhances their tactical flexibility and ensures they remain central to modern land warfare doctrines.

The increasing reliance on mechanized and armored units in the region has further fueled the use of high-caliber rounds. These munitions are engineered for improved lethality and precision, often integrated with programmable fuzes and extended-range capabilities. The shift toward more accurate and longer-reaching indirect fire systems has resulted in consistent procurement of high-caliber ammunition by military forces. As battlefield engagements continue to evolve, the demand for munitions that can adapt to both conventional and hybrid combat environments places above 60mm calibers at the forefront of artillery modernization programs. Their use in various mission profiles—from suppressive fire and area denial to bunker busting and counter-battery operations—demonstrates their operational versatility.

The above 60mm segment benefits from advancements in ammunition engineering that enable improved aerodynamics, reduced weight for enhanced mobility, and better terminal effectiveness. Long-range precision strikes using these calibers help in minimizing exposure of frontline units, aligning with the increasing focus on force protection and efficient resource utilization. These rounds are also being integrated into network-centric warfare systems, allowing real-time target engagement and improved coordination with reconnaissance assets. Growing defense budgets and cross-border joint development initiatives are ensuring steady innovation and standardized adoption of advanced large caliber munitions in this category.

Training programs and live fire exercises are reinforcing stockpiles of high-caliber rounds to maintain readiness. The reliability and widespread operational integration of above 60mm calibers ensure their continued dominance. With evolving artillery doctrines placing emphasis on stand-off distance, saturation firepower, and precision engagement, this segment is poised to remain central in shaping the region’s strategic deterrence capabilities.

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Country Insights

In 2024, Russia emerged as the dominant region in the Europe & CIS large caliber ammunition market, supported by its expansive defense infrastructure, sustained military expenditure, and active modernization of artillery systems. The country’s strategic defense doctrine prioritizes long-range firepower, high-volume artillery barrages, and readiness for large-scale ground operations, all of which heavily rely on large caliber ammunition, particularly those above 60mm. Russia maintains an extensive fleet of main battle tanks, self-propelled howitzers, and multiple rocket launcher systems that continuously drive demand for various high-caliber munitions, including 122mm, 152mm, and 203mm rounds. These systems form the backbone of its ground combat forces, and their consistent deployment across training exercises and strategic borders contributes to sustained ammunition consumption and procurement.

Investment in research and development has supported the evolution of large caliber munitions tailored for increased range, precision, and destructiveness. Russia continues to focus on producing new-generation artillery shells equipped with guidance systems and variable fuzing to enhance battlefield efficiency. The integration of these rounds with modern fire-control systems and surveillance platforms underscores a shift towards digitally connected, precision-oriented artillery warfare. Demand is not just driven by regular army operations but also by the need to maintain large ammunition reserves for rapid mobilization scenarios. The domestic manufacturing ecosystem, bolstered by state support and long-term procurement contracts, ensures high production capacity and rapid replenishment of large caliber ammunition stockpiles.

Russia's strategic military posture along extended borders and within contested regions calls for constant artillery readiness, resulting in high-volume orders of large caliber ammunition for both tactical and deterrence roles. For instance, Russia is the worlds third largest military spender. Military spending worldwide has steadily increased, reaching $2.44 trillion in 2023, driven by the Russia-Ukraine war, tensions in the South China Sea, and the war in Gaza. The U.S. defense budget is projected to rise to $1.1 trillion by 2033, with the Navy and Air Force receiving the largest allocations. In 2024, the U.S. Air Force budget alone was nearly $260 billion, reflecting North America's dominant role in global military expenditure. High-tempo training cycles and live-fire drills in varying terrains further increase the rate of ammunition usage. This continuous operational tempo directly fuels demand across various calibers, particularly for longer-range, high-explosive, and armor-piercing variants used in heavy artillery platforms. The country’s ability to produce and deploy large caliber munitions at scale, coupled with its doctrinal emphasis on artillery dominance, has placed it at the forefront of the regional market.

Recent Developments

• In 2024, the United Kingdom finalized a £300 million ($380 million) contract to supply Ukraine with 120,000 newly manufactured 152 mm artillery shells over the next 18 months. This initiative, managed by the UK's Defence Equipment & Support (DE&S) and funded through the International Fund for Ukraine (IFU), aims to replenish Ukraine's ammunition stockpiles and bolster its defense capabilities amid ongoing conflict. Several thousand shells are expected to be delivered by the end of the year, providing immediate support to Ukrainian forces. The IFU, with contributions from eight countries totaling over £1 billion, underscores the collaborative international effort to support Ukraine's sovereignty and security.
• In 2024, Ukraine's Foreign Intelligence Service Chief, Oleh Ivashchenko, disclosed that Russia plans to manufacture over 7 million artillery shells and large-caliber mines in 2025, alongside approximately 3,000 long-range missiles. This ambitious production goal underscores Moscow's intent to outpace the combined ammunition output of all European Union countries, reflecting a strategic emphasis on sustaining high-intensity warfare capabilities. The announcement highlights Russia's focus on bolstering its military-industrial complex to support ongoing operations and maintain a significant advantage in artillery firepower. This development raises concerns about the escalating arms race and the potential implications for regional security dynamics.
• In 2025, Rheinmetall announced the acquisition of Hagedorn-NC, a German industrial nitrocellulose manufacturer, to secure a critical raw material for artillery propellant production amid Europe's intensified efforts to boost ammunition output. This strategic move addresses a key bottleneck in the supply chain, enhancing Rheinmetall's capacity to meet the European Union's goal of producing 2 million artillery shells annually by 2025, up from 230,000 in early 2023. The acquisition adds a fourth nitrocellulose production site to Rheinmetall's portfolio, complementing existing facilities in Switzerland, Spain, and South Africa, and supports the company's aim to produce up to 1.1 million 155 mm shells per year by 2027. Pending antitrust approval, the deal underscores the broader European initiative to fortify defense manufacturing capabilities in response to ongoing geopolitical tensions.

Key Market Players

• General Dynamics Corporation
• BAE Systems PLC
• Rheinmetall AG
• Northrop Grumman Corporation
• ST Engineering
• Saab AB
• Denel SOC Ltd
• Global Ordnance
• Nammo AS
• Diehl Stiftung & Co. KG

Report Scope:

In this report, the global Europe & CIS Large Caliber Ammunition Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•        Europe & CIS Large Caliber Ammunition Market, By Caliber Type:

o    40 - 60 mm

o    above 60mm

•        Europe & CIS Large Caliber Ammunition Market, By End User:

o    Naval Forces

o    Ground Forces

•        Europe & CIS Large Caliber Ammunition Market, By Country:

o    Germany

o    Italy

o    France

o    United Kingdom

o    Russia

 Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Europe & CIS Large Caliber Ammunition Market.

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Europe & CIS Large Caliber Ammunition Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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