Small Caliber Ammunition Market Size To Rise USD 17.29 Bn By 2032

Published Date : 05 Dec 2023

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 Market Size and Growth Rate From 2023 To 2032

Market Overview

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.

  • For instance, in 2022, the total amount spent on military spending worldwide climbed by 3.7% in real terms, hitting a record $2240 billion. Europe's military spending increased at the fastest annual rate in at least three decades. According to recent statistics on global military spending released by the Stockholm International Peace Research Institute (SIPRI), the three countries that spent the most in 2022 were the United States, China, and Russia, accounting for 56% of the total.
  • In September 2022, to begin procuring and providing the Australian Defence Force (ADF) with the next generation of small guns, the Federal Government and a Queensland-based firm have signed a multi-million-dollar deal. This deal is a component of a larger $500 million commitment to supply Australia's aviators, sailors, and soldiers with improved lethality weapon systems.

Regional Insights

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.

Small Caliber Ammunition Market Report Scope

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

Market Dynamics


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.


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.


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.

Recent Developments

  • In September 2023, the British Army's heavy munitions arsenal will be expanded with the signing of a new $162 million deal between the UK and BAE Systems for 155mm artillery shells, 30mm medium caliber rounds, and 5.56mm ammunition. The UK minister for defense procurement, James Cartlidge, stated that the new contract completes an order worth $512 million and would result in the establishment of a new explosive filling factory in Glascoed, South Wales, and an extra machining line in Tyne and Wear in northern England.
  • In March 2023, AM1 is a new kind of assault weapon introduced by PT Pindad. For the AM1 rifle's design, the business worked with South Korean optical sight manufacturer EOS-T. It has a NATO standard 5.56 mm x 45 mm caliber. The weapon has a telescopic buttstock tube that allows the operator to change the stock butt size's length.

Key Market Players

  • Northrop Grumman Corporation
  • General Dynamics Corporation
  • BAE Systems PLC
  • Denel SOC Ltd
  • Remington Arms Company LLC
  • CBC Global Ammunition
  • RUAG Group
  • Nammo AS
  • Olin Corporation
  • CCI Ammunition
  • Elbit Systems Ltd
  • Ordnance Factory Board (OFB)
  • PT Pindad

Market Segmentation

By Size

  • 5.56mm
  • 7.62mm
  • 9 mm
  • 50 caliber
  • Shotshells

By Applications

  • Military
  • Civilian
  • Law Enforcement Agencies

By Casing Type

  • Brass
  • Steel

Buy this Research Report@

You can place an order or ask any questions, please feel free to contact at | +1 650 460 3308