Large Caliber Ammunition Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Caliber Type (40 - 60 mm, above 60mm), By End User (Naval Forces, Ground Forces), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 325.26 Million
CAGR (2026-2031)	8.48%
Fastest Growing Segment	Ground Forces
Largest Market	North America
Market Size (2031)	USD 530.06 Million

Market Overview

The Global Large Caliber Ammunition Market will grow from USD 325.26 Million in 2025 to USD 530.06 Million by 2031 at a 8.48% CAGR. Large caliber ammunition comprises projectiles with diameters typically exceeding 57mm, including artillery shells, tank rounds, and naval munitions designed for heavy fire support and anti-armor operations. The market is primarily propelled by escalating geopolitical tensions and the critical necessity for nations to replenish military stockpiles depleted by ongoing regional conflicts. Furthermore, defense modernization programs globally are driving sustained demand for advanced ballistic solutions to ensure combat readiness. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the European defense sector turnover increased by 13.8 percent, reflecting the intensified industrial output required to meet these surging security requirements and procurement mandates.

Despite this robust demand, the market faces a significant challenge concerning the availability of critical raw materials essential for manufacturing. Producers are encountering severe supply chain bottlenecks, particularly regarding the shortage of nitrocellulose and specialized propellants, which restricts the industry's ability to rapidly scale production volumes. This scarcity of energetic materials, combined with constraints in the skilled manufacturing workforce, creates a formidable obstacle that could delay delivery schedules and impede the overall expansion of the global large caliber ammunition market.

Key Market Drivers

Urgent replenishment of depleted strategic ammunition inventories is acting as a primary catalyst for market growth, fueled by high-intensity conflicts that have exhausted national stockpiles. Governments are prioritizing the immediate acquisition of artillery shells and heavy munitions to sustain ongoing military operations and restore minimum deterrence levels. This demand is characterized by long-term framework agreements designed to secure supply stability over several years. For instance, according to Rheinmetall, June 2024, in the 'Large framework contract for 155mm ammunition' press release, the company received a record-breaking order worth up to €8.5 billion to replenish the stocks of the German Bundeswehr and its allies. Such colossal procurements highlight the critical shortage of large caliber projectiles and the strategic imperative to rebuild inventory depths rapidly.

Concurrently, the expansion of indigenous defense manufacturing and sovereign supply chains is reshaping the industry landscape as nations seek to reduce reliance on foreign imports and alleviate supply bottlenecks. Defense ministries are heavily investing in modernizing organic industrial bases, funding new production lines, and enhancing automation to increase throughput. According to GovCon Wire, September 2024, in the 'Army Awards $961M in Contracts to Boost 155mm Artillery Production' article, the U.S. Army awarded over $961 million to various contractors to expand domestic capacity for critical 155mm components. This shift towards self-sufficiency is further evidenced by multinational cooperation strategies. According to NATO, in 2024, the alliance's Support and Procurement Agency concluded contracts totaling $1.2 billion for approximately 220,000 artillery shells, underscoring the global scale of this industrial mobilization to meet surging consumption rates.

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Key Market Challenges

The most significant challenge currently hampering the Global Large Caliber Ammunition Market is the scarcity of critical raw materials, particularly nitrocellulose and specialized propellants. This shortage creates a severe bottleneck at the foundational level of the supply chain, which restricts the ability of manufacturers to increase output despite receiving record-breaking orders. Even as nations allocate higher budgets for defense procurement, the physical unavailability of these essential energetic ingredients prevents the rapid scaling of production. Consequently, producers are forced to extend delivery timelines and ration their output, which directly delays revenue recognition and slows the overall realization of market growth potential.

This inability to match industrial output with demand is quantifiable within recent production metrics. According to the Association of the United States Army, in 2024, the monthly production rate of 155mm artillery shells in the United States reached approximately 40,000 rounds, a volume that remained heavily constrained by supply chain limitations against the operational requirement of 100,000 rounds per month. This substantial gap between the manufacturing capacity and the strategic target highlights how deep-tier raw material shortages serve as a formidable barrier to the expansion of the large caliber ammunition sector.

Key Market Trends

The development of ramjet-powered extended range projectiles is revolutionizing the market by significantly increasing the effective engagement distance of standard artillery systems. Unlike traditional rocket-assisted projectiles that sacrifice payload for propellant, ramjet designs utilize an air-breathing engine to sustain supersonic velocities, thereby tripling the operational reach of 155mm howitzers without requiring modifications to the gun platform. This technology enables ground forces to strike deep-tier targets that were previously accessible only via expensive missile systems. According to United24 Media, July 2025, in the 'NATO's New Super Shell: Ramjet Artillery Can Strike 150km With Pinpoint Accuracy' article, the newly developed Ramjet 155 projectile demonstrated the capability to engage targets at a range of up to 150 kilometers, highlighting the strategic shift towards long-range interdiction capabilities.

Simultaneously, the widespread adoption of precision-guided artillery munitions is enhancing lethality while minimizing logistical burdens. Defense forces are transitioning from saturation fire tactics to surgical strike doctrines that utilize sensor-fuzed and laser-guided projectiles to neutralize mobile threats with high single-shot probabilities. This trend is driving manufacturers to rapidly scale the production of smart munitions integrating advanced guidance systems to meet the needs of modern high-intensity warfare. According to Army Recognition, January 2025, in the 'Russia Completes Full Delivery of High-Precision Weapons for 2024 Contracts' article, Kalashnikov Concern increased its production output of high-precision weaponry, including guided artillery shells, by 50 percent in 2024 to meet the intensifying operational requirements for accurate fire support.

Segmental Insights

The Ground Forces segment currently represents the fastest-growing category within the Global Large Caliber Ammunition Market due to escalating geopolitical instability and the strategic prioritization of land warfare capabilities. This expansion is primarily fueled by the urgent requirement for defense ministries and alliances, such as the North Atlantic Treaty Organization, to replenish artillery stockpiles depleted during recent high-intensity conflicts. Furthermore, increased government allocations toward modernizing main battle tanks and self-propelled howitzers are directly sustaining the elevated demand for heavy projectiles, ensuring robust long-term growth for this sector.

Regional Insights

North America maintains the leading position in the global large caliber ammunition market, driven primarily by extensive procurement initiatives from the United States Department of Defense. This dominance results from the continuous need to replenish artillery and tank munition stockpiles to support military readiness and strategic alliances. The region also benefits from a consolidated industrial base where key manufacturers execute long-term supply contracts for heavy weapon systems. Consequently, steady government investment in ammunition logistics and production modernization solidifies North America as the primary contributor to global market revenue.

Recent Developments

• In October 2025, Hanwha Aerospace finalized a three-year framework agreement with the Swedish Defence Materiel Administration to supply Modular Charge Systems for 155mm artillery platforms. The contract included an initial order worth approximately $110 million and was signed during the Association of the United States Army Annual Meeting. This collaboration underscored a growing strategic partnership, as the propellant system was designed to be fully compliant with NATO standards and interoperable with various artillery systems, including the K9 Self-Propelled Howitzer. The Head of the PGM Business Group at Hanwha Aerospace noted that the deal reflected the deep trust built between the company and Sweden.
• In April 2025, General Dynamics Ordnance and Tactical Systems, in partnership with the U.S. Army, opened a new load, assemble, and pack facility for 155mm high-explosive artillery projectiles in Camden, Arkansas. The establishment of this facility involved an investment of $110 million and was intended to strengthen the U.S. defense industrial base by integrating advanced manufacturing processes. The President of General Dynamics Ordnance and Tactical Systems highlighted that the purpose-built factory would provide a more resilient industrial capability for warfighters. Once fully operational, the site was projected to produce 50,000 rounds per month.
• In July 2024, Nammo AS entered into a strategic agreement with the Norwegian Defence Materiel Agency to significantly expand its artillery ammunition production capabilities. The Norwegian government allocated funding of more than NOK 1 billion to support this initiative, which included the establishment of a new production line at the company's Raufoss facility. This collaboration aimed to increase the manufacturing capacity for modern artillery shells tenfold to meet the urgent needs of Norway, the North Atlantic Treaty Organization, and Ukraine. The company committed to maintaining this enhanced production capacity for at least 15 years.
• In June 2024, Rheinmetall AG signed a significant framework contract with the German Armed Forces to supply 155mm artillery ammunition. This agreement, valued at up to €8.5 billion, represented the largest order in the company's history and aimed to replenish the stocks of the Bundeswehr and its allies, including Ukraine, the Netherlands, Estonia, and Denmark. The deal marked a substantial expansion of an existing framework and was designed to ensure capacity utilization at the company's new factory in Unterluess, Lower Saxony. Deliveries of the projectiles were scheduled to commence at the beginning of 2025.

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

By Caliber Type	By End User	By Region
40 - 60 mm above 60mm	Naval Forces Ground Forces	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Large Caliber Ammunition Market , By Caliber Type:

• 40 - 60 mm
• above 60mm

• Large Caliber Ammunition Market , By End User:

• Naval Forces
• Ground Forces

• Large Caliber 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