Report : Europe Ammunition Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Product (Bullets, Aerial Bombs, Grenades, Artillery Shells, Mortars, and Others), Application (Defense and Commercial), Guidance (Guided and Non-Guided), Lethality (Non-Lethal and Lethal), and Caliber [Small Caliber Ammunition (5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, .45ACP, 338LM, 22LR, .223 Rem, and .308 Winchester), Medium Caliber Ammunition (20mm, 30mm, 40mm, and Others), and Large Caliber Ammunition (60mm, 105mm, 120mm, 150mm, and Others)]
At 7.0% CAGR, the Europe Ammunition Market is speculated to be worth US$ 16,333.02 Million by 2028, says Business Market Insights
According to Business Market Insights’ research, the Europe ammunition market was valued at US$ 10,872.26 million in 2022 and is expected to reach US$ 16,333.02 million by 2028, registering an annual growth rate of 7.0% from 2022 to 2028. Surge in military spending promoting procurement of ammunitions and upcoming of light weight ammunitions are the critical factors attributed to the market expansion.
The rise in military expenditure is one of the major factors that is promoting the procurement of ammunition and guns. Further, the rising tension among several countries is generating awareness for increasing military power and strengthening law enforcement power across different countries. For instance, the ongoing war between Russia and Ukraine are a few of the major factors that have been generating huge demand for ammunitions globally. Moreover, most European countries have already announced to double their military budgets, which is also boosting the procurement of ammunition and firearms. For instance, in March 2022, seven countries, including Germany, Belgium, Romania, Italy, Poland, Norway, and Sweden, announced an increase in their defense spending due to the invasion of Russia in Ukraine. As a result, according to several defense sources, Germany announced that it would be spending an additional US$ 112 billion in its military expenditure, that also led to rise in its military spending from 1.53% of the national GDP to above 2%.
The sudden increase in demand for ammunition since 2020 is also driving the ammunition market growth. The Europe firearm & ammunition industry witnessed a ~400% increase from 2020 to 2021, according to several defense sources that have increased the procurement of ammunition. Moreover, commercial applications such as hunting and other shooting sports have witnessed a rise in demand for ammunition and firearms, which is catalyzing the ammunition industry.
On the contrary, shortage of ammunitions after FY 2022 hurdles the growth of Europe ammunition market.
The Europe ammunition market, by product type, is segmented into bullets, aerial bombs, grenades, artillery shells, mortars, and others. In 2022, the aerial bombs segment dominated market with a share of 27.5%, amassing US$ 2,993.55 million. It is projected to garner US$ 4,969.68 million by 2028 to expand at 8.8% CAGR during 2022–2028.
Based on application, the ammunition market sphere is bifurcated into defense and commercial. The former held 90.0% market share in 2022, amassing US$ 9,782.18 million. It is projected to garner US$ 14,891.89 million by 2028 to expand at 7.3% CAGR during 2022–2028.
Based on guidance, the ammunition market sphere is bifurcated into guided and non-guided. The lethal segment held 63.7% market share in 2022, amassing US$ 6,925.23 million. It is projected to garner US$ 10,634.08 million by 2028 to expand at 7.4% CAGR during 2022–2028.
Based on lethality, the ammunition market sphere is bifurcated into non-lethal and lethal. The former held 89.6% market share in 2022, amassing US$ 9,742.03 million. It is projected to garner US$ 14791.68 million by 2028 to expand at 8.7% CAGR during 2022–2028.
By caliber, the Europe ammunition market is fragmented into small caliber ammunitions, medium caliber ammunitions, and large caliber ammunitions. With 47.5% share of the domain, the large caliber segment dominated the market in 2022. It accrued US$ 5,159.73 million in 2022 and is estimated to generate US$ 8,063.43 million by 2028 to grow at a CAGR of 7.7% over the forecast period.
Our regional analysis states that Russia captured 33.4% market share in 2022. It was assessed at US$ 3,636.09 million in 2022 and is likely to hit US$ 5251.07 million by 2028, exhibiting a CAGR of 6.3% during the forecast period.
Key players dominating the Europe ammunition market are BAE Systems, Elbit Systems Ltd, NAMMO AS, Northrop Grumman Corporation, Raytheon Technologies Corporation, Rheinmetall AG, RUAG Group, Thales Group, and Vista Outdoor Operations LLC among others.
Below are mentioned a few key market developments by majir players:
In 2022, Rheinmetall announced contracts from unnamed NATO customers to supply 35mm ammunition. The deliveries will take place in 2023 and 2024 and the contract is worth a total of $21.3 million.
In 2022, General Dynamics Ordnance and Tactical Systems awarded a US$ 50.8 million contract for 120mm. The new Production multi-purpose tank training rounds and 120mm new production kinetic energy rounds.
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