Report : South America Small Caliber Ammunition Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Ammunition Size (5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, .338mm, .22LR, 223 REM, and .308 Winchester), End User (Military, Homeland Security, and Law Enforcement Agencies), and Gun Type (Pistols, Rifles, and Shot Guns)
Rifles Segment is Expected to be Fastest Growing During Forecast Period for SAM Region
According to a new market research study on “SAM Small Caliber Ammunition Market to 2028 – COVID-19 Impact and Regional Analysis and Forecast by Ammunition Size, End User, and Gun Type” is expected to reach US$ 560.29 million by 2028 from US$ 424.22 million in 2021. The market is estimated to grow at a CAGR of 4.1% from 2021 to 2028. The report provides trends prevailing in the SAM small caliber ammunition market along with the drivers and restraints pertaining to the market growth. Rising investments by homeland security and law enforcement departments and need of modernizing military operations with rapid changes in warfare are the major factor driving the growth of the SAM small caliber ammunition market. However, imposition of strict rules related to procurement and sales of ammunition hinders the growth of SAM small caliber ammunition market.
In case of COVID-19, SAM is highly affected especially Brazil, followed by Peru, Chile, Colombia, and Ecuador. The recent outbreak of the COVID–19 has significantly affected the SAM region and is continuing to shatter several countries. Until the outbreak of COVID–19, the defense industry was experiencing substantial growth in terms of production and services. Due to COVID-19 pandemic, ammunition, and assembly line manufacturing all over the world have been impacted. The government of South America has taken an array of actions to protect its citizens and contain COVID-19’s spread. Brazil is the largest spender in the military sector, followed by Colombia and Chile. The COVID-19 has hit hard on these three countries, and the military forces in the countries mentioned above are substantially dependent on international military equipment suppliers. The closure of international borders, restrictions in international trades, and governmental focus towards containing the spread of the virus have been deprioritizing military expenditure. This factor negatively influences various military and defense equipment markets, including small caliber ammunition.
The SAM small caliber ammunition market is segmented on the basis of ammunition size, end user, gun type, and country. Based on ammunition size, the market is segmented into 5.56mm, 7.62mm, 9mm, 12.7mm, 14.5mm, 45ACP, .338 LM, .22LR, 223 rem, and .308 Winchester. The 9mm segment dominated the SAM small caliber ammunition market in 2020 and 7.62mm segment is expected to be fastest growing during forecast period. In terms of end user, the SAM small caliber ammunition market is segmented into military, homeland security, and law enforcement agencies. The military segment dominated the SAM small caliber ammunition market in 2020 and homeland security segment is expected to be fastest growing during forecast period. Based on gun type, the market is segmented into pistols, rifles, and shot guns. The pistols segment dominated the SAM small caliber ammunition market in 2020 and rifles segment is expected to be fastest growing during forecast period.
BAE Systems Plc, CBC Global Ammunition, Elbit Systems Ltd., FN HERSTAL, and Northrop Grumman Corporation are among the leading companies in the SAM small caliber ammunition market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2020, BAE System scored a contract from UK Defense to supply munitions of worth US$ 3.2 billion over next 15 years. According to the contract, BAE Systems will be responsible for production and supply of approximately 70 million small caliber ammunition, 100,000 large caliber ammunition, and 40,000 medium caliber ammunition, and 75,000 mortar rounds.
The Report Segments the SAM Small Caliber Ammunition Market as Follows:
SAM Small Caliber Ammunition Market – By Ammunition Size
- 223 REM
- .308 Winchester
SAM Small Caliber Ammunition Market – By End User
- Homeland Security
- Law Enforcement Agencies
SAM Small Caliber Ammunition Market – By Gun Type
- Shot Guns
SAM Small Caliber Ammunition Market – By Country
- Rest of SAM
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