Insights on the Small Caliber Ammunition Global Market to 2028 – Surge in Demand for Small Arms Ammunition in Developing Countries – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Small Caliber Ammunition Market Forecast to 2028 – COVID-19 Impact and Global Analysis by Ammunition Size, End User, Gun Type, and Geography” report has been added to ResearchAndMarkets.com’s offering.

The small caliber ammunition market is expected to grow from US$ 5,923.61 in 2020 to US$ 10,241.57 million by 2028; it is estimated to grow at a CAGR of 7.08% during 2020-2028.

Ammunition plays a decisive role in escalating, prolonging, or intensifying armed conflict. It is consumable and continuously replenished. Small caliber ammunition, usually less than 20 mm, includes cartridges and bullets fired from a weapon, and they consist of gun powder and primers for explosion. The ammunition is used primarily with small arms as well as with some light weapons. Surging terrorist activities across the world as well as increasing internal and international conflicts are compelling government agencies and military authorities, and police departments to procure this type of ammunition. Furthermore, military modernization initiatives being implemented in major defense countries are gathering greater focus on spending significant amounts on the procurement of ammunition, which is supporting the growth of the small caliber ammunition market.

Based on ammunition size, the small caliber ammunition market is segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 12.77mm, 14.5mm, 45ACP, .338LM, .22LR, .223 Remington, and .308 Winchester. The 7.62mm segment is expected to register the highest CAGR during the forecast period owing to a larger ranges of cartridges offered with this caliber. The 7.62mm caliber is used in long-range small weapons such as medium machine guns, handguns, and shorter-range sniper rifles. 7.62x51mm and 7.62x39mm are the two configurations of 7.62mm ammunition. The 7.62x51mm is majorly the US configuration, whereas the 7.62x39mm is the Russian configuration. Both configurations have immense demand from the defense and homeland security forces. Based on end user, the small caliber ammunition market is segmented into military, homeland security, and law enforcement agencies. By gun type, the market is segmented into pistols, rifles, and shot guns. In terms of geography, in 2020, North America dominated the small caliber ammunition market owing to the increasing use of ammunition by armed forces and growing number of drug cartels in Central America. Moreover, the North America small caliber ammunition market is driven by the strong demand from the US. The long-term competitive strategy of the US Department of Defense for developing technologies and new concepts of warfare is expected to aid the regional market growth during the forecast period.

The COVID-19 outbreak has significantly affected the world and is continuing to shatter several countries. Until the outbreak, the defense industry was experiencing substantial growth in terms of production and services. Due to the pandemic, ammunition and assembly line manufacturing across the world have been negatively impacted. Despite the importance of ammunition manufacturing for military applications, the production of ammunition is disrupted owing to the restrictions on supply chain. The level of COVID-19 exposure a country faces, the level at which manufacturing operations are running, and import-export regulations, among other things, all factors are playing an important role in resuming ammunition manufacturing and demand. Several countries have decided to cut their defense budgets in general. Budgets for the research and noncritical sectors are likely to be temporarily cut as defense departments focus more on critical sectors to national security.

Reasons to Buy

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global small caliber ammunition market.
• Highlights key business priorities in order to assist companies to realign their business strategies
• The key findings and recommendations highlight crucial progressive industry trends in the global small caliber ammunition market, thereby allowing players across the value chain to develop effective long-term strategies
• Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
• Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
• Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution

Market Dynamics

Drivers

• Rising investments by homeland security and law enforcement departments for procurement of small caliber ammunition
• Need of Modernizing Military Operations with Rapid Changes in Warfare

Restraints

• Imposition of Stringent Regulations Related to Procurement and Sales of Ammunition

Opportunities

• Surge in Demand for Small Arms Ammunition in Developing Countries

Future Trends

• Adoption of New Squad Automatic Rifle by Military Forces

Companies Mentioned

• BAE Systems
• CBC Global Ammunition
• Denel Pretoria Metal Pressing
• Elbit Systems Ltd.
• FN Herstel
• General Dynamics OTS
• Nammo AS
• Northrop Grumman Corporation
• Remington Arms Company LLC
• Winchester Ammunition

For more information about this report visit https://www.researchandmarkets.com/r/5vg6qj

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