The global small caliber ammunition market size is estimated at USD 12.2 billion in 2022 and is expected to reach USD 17.29 billion by 2032, growing at a CAGR of 3.6% during the forecast period.
Small caliber ammunition refers to cartridges designed for firearms with relatively small-diameter barrels. The caliber of a firearm is the internal diameter of its barrel, typically measured in inches or millimeters. Small-caliber ammunition is generally associated with firearms such as handguns, submachine guns, and certain types of rifles. Small-caliber ammunition is versatile and serves various purposes, including self-defense, sports shooting, and military applications. The choice of caliber often depends on factors such as the intended use of the firearm, recoil considerations, and ammunition availability.
The small caliber ammunition market is driven by several factors including increasing global threats and geopolitical tensions, rising civilians’ firearms ownership, technological advancements and many others. In addition, a significant driver for the small caliber ammunition market is the defense sector's demand for ammunition for military and law enforcement applications. Countries investing in their defense capabilities often contribute to the growth of the small caliber ammunition market.
North America is expected to hold the largest market share in the upcoming period. The growth in the region is primarily driven by the US due to the presence of major companies and rising funding for small caliber ammunition. For instance, a leading provider of aerospace and military technology worldwide, Orbital ATK, announced that it has been awarded new contracts worth over $115 million to manufacture small-caliber ammunition for the US Army. The U.S. government-owned Lake City Army Ammunition Plant in Independence, Missouri, which is run by Orbital ATK, will produce the 5.56mm, 7.62mm, and.50 caliber ammunition that the Army has ordered.
Moreover, in June 2022, $51.8 million was granted by the US Department of Defense (DOD), a US-based government organization, to alter the current contract to produce ammunition in the 5.56 mm, 7.62 mm, and 0.50 mm calibers. Furthermore, there is a sizable civilian market in the region for small caliber ammunition. To meet the demand for weapons for sports, leisure, and self-defense, the civilian firearms industry in the United States is particularly enormous and active.
| Report Coverage | Details |
| Market Revenue in 2023 | USD 12.58 Billion |
| Projected Forecast Revenue by 2032 | USD 17.29 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 3.6% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Drivers
Growing personal protection use of guns
The majority of uses for small caliber ammunition are in the civilian world, including hunting, sports shooting, and personal protection. The market is expanding as a result of increased mass shooting incidents, an increase in terrorist activity, and growing demand from the armed forces. Police officers and military personnel are the main users of handguns as sidearms. The market is also becoming more intense due to a rise in the production of pistols, shotguns, light machine guns, short-range rifles, and large import and export of firearms worldwide. Furthermore, the rising number of mass shooting incidents each year has fine-tuned citizens' perceptions of personal security.
Growing military modernization initiatives in emerging nations
An important factor in the escalation, length, and intensity of armed engagements is ammunition. Russia, China, Turkey, India, and other nations are investing enormous amounts of money to upgrade their military and defense industries. Consequently, during the past several years, defense spending on small caliber ammunition acquisition and research and development has expanded dramatically. To increase the range, accuracy, mobility, and lethality of their weapons arms, several nations are investing heavily in military modernization projects.
Restraints
Supply chain disruptions
The small caliber ammunition industry relies on a complex global supply chain of raw materials, components, and manufacturing. Disruption in the supply chain, whether due to geopolitical events, natural disasters or other factors, can impact production capabilities and lead to shortages. Thus, this is expected to hamper the market.
Cost and resource constraints
It may be necessary to make large expenditures in infrastructure, personnel training, and technology to implement small caliber ammunition solutions. Budgetary restrictions may make it more difficult for smaller healthcare institutions to use this technology. The European Union has enforced several rules concerning small caliber ammunition in recent times. These laws include bans on the sale of particular types of ammunition and requirements for obtaining permits or permissions before obtaining and possessing ammunition. These rules have had an immense impact on the European market for small caliber ammunition, particularly for manufacturers and distributors that operate in multiple EU member states.
Opportunities
Technological advancements
The market for small caliber ammunition is expanding as a result of technological advancements and ammunition developments like green ammunition. The market for small caliber ammunition is being significantly impacted by the introduction of cutting-edge, environmentally friendly small weapons ammunition, or green ammunition. To reduce the environmental pollution of training grounds and firing ranges, green bullets, which are composed of nylon and tungsten were produced as an improved substitute for lead core bullets. The main goal of green munitions is to get rid of heavy metals and volatile organic compounds from primers and projectiles. This reduces the possibility of health problems like those brought on by lead bullets.
Increase in terrorist threats
The market for small caliber ammunition has expanded in part because of the growing concerns posed by terrorist activity. Ammunition having a barrel diameter of less than 20 mm is referred to as small caliber ammunition. This includes both bullets and cartridges. A recent example of this trend is the growing need for tiny caliber ammunition by law enforcement and military organizations worldwide, especially in areas that are vulnerable to terrorist attacks. For example, the numerous military and terrorist groups active in the Middle East and Afghanistan have resulted in a greater need for small caliber ammunition due to the continuous hostilities in these locations.
Market Segmentation
By Size
By Applications
By Casing Type
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