Small Caliber Ammunition Market to See Huge Growth by 2025

Posted September 28, 2020 by bisrsrch

Focus on Caliber, Gun Type, Ammunition Type and End User - Analysis and Forecast, 2020-2025
The global small caliber ammunition market has gained its importance in military operations where it has been used against terrorist groups and enemy forces. Furthermore, companies are introducing latest technology weapons for the small caliber ammunition market that is gaining the importance among defense end users due to the advantages of enhanced lethality. Many defense forces across the world have engaged in contracts with various leading manufacturers to produce a specific range of small caliber ammunition.

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Moreover, increasing demand in Asia-Pacific and Middle East regions gives an opportunity to the companies to expand their product in these regions. With the Middle East in political turmoil, Asia-Pacific is becoming the next hub of global economic growth, followed by Africa. New military policies in the countries of Asia-Pacific focus on modernizing weapons. For instance, in February 2019, India signed a contract with Sig Sauer, Inc. to import 72,400 assault rifles. Moreover, the U.S. military is assisting Asia-Pacific countries such as India and Japan to rebalance the defense and its economic resources, which will strengthen the partnership and alliance of both the regions.

The North America region is the largest market for ammunition manufacturers and is expected to remain so over the forecasted period. In 2019, North America had a market share of 41.7% of the global small caliber ammunition market. It is anticipated to reach a market value of $3.57 billion by 2025 at a CAGR of 4.48% from 2020 to 2025. The small arms and ammunition manufacturers in North America are experiencing a growth in the defense/military market, as the governments in this region are significantly increasing their defense budgets for procuring defense solutions. Although civilian and commercial sectors are expected to have decent demand in the market. However, due to the pandemic, the civilian market is completely closed for more than a quarter of the year. Due to the same, the civilian market experienced a dip in its market value.

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The major strategies employed to gain a significant share in the global small caliber ammunition market have been varying from contracts and mergers to business expansion. The prominent players in the global small caliber ammunition market adopted the strategy of contracts and partnerships to expand their businesses. The most preferred strategy has been contracts from customers, while the least adopted strategy was mergers and acquisitions. The acquisitions were made to access the existing knowledge of the acquired company as well as to offer an attractive suit of products and services. Hence, to remain competitive in the market in the future, businesses need to invest extensively on high-end products through mergers and acquisitions and partnerships, among others.

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Bhavya Banga
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Categories Defense , News , Research
Tags small caliber ammunition market , Small Caliber Ammunition , defense , Security
Last Updated September 28, 2020