Large Caliber Ammunition Market - Growth, Trends, and Forecasts (2020 - 2025)

Large Caliber Ammunition Market - Growth, Trends, and Forecasts (2020 - 2025)

The large caliber ammunition market is expected to register a CAGR of more than 4% during the forecast period (20202025).

Governments across the world are making investments in weapons such as field artillery, mortars, naval guns, etc. to strengthen the land and maritime border security, civilian protection, and lethality of armed forces. These weapons also act as a costeffective option over costly missiles and rockets used for ground attack operations. Owing to the aforementioned reason, the demand for large caliber ammunition is expected to rise during the forecast period.
Significant technological advancements such as highspeed projectile firing, laser guidance systems, and the increasing need for friend or foe identification technology and precision targeting technology is driving the market growth for GPS enabled artillery and mortar shells. Due to an increase in political instability and terrorism in MiddleEast, overseas deployment of forces has increased and simultaneously increased the demand for firepower support on the battlefield, driving the market growth for largecaliber ammunition.

Key Market Trends

Rise in Defense Spending is Supporting the Growth of the Large Caliber Ammunition Market

Territorial disputes that increased in the MiddleEast after the reduction in forces from Western countries has resulted in armed conflicts between national armies of various countries. Countries in the MiddleEast have increased the procurement of artillery systems and mortars over the past decade, which has simultaneously generated demand for largecaliber ammunition. Many countries across the world, such as the United States, India, and China, have increased there defense spending significantly since 2010. India increased its military spending from USD 66.25 billion in 2018 to USD 71.13 billion in 2019. A large part of this defense spending goes to the procurement and development of weapons and ammunition. Many countries are spending a significant amount of money on artillery shells, mortar ammunition, etc. For instance, in 2019, Pakistan entered into a deal with Italy for the procurement of 100,000 artillery shells. In 2019, the United States Navy also inked a USD 22.7 million deal with BAE Systems for Bofors 57MK3 Gun System for its Littoral Combat Ships. Technological advancement such as precisionguided technology, etc. is another factor that is driving the market growth. In an effort to further strengthen its border defense, India confirmed the order of buying precisionguided Excalibur 155 mm artillery rounds from the United States in 2019. The study offers insights about the latest innovation, R&D, and procurement of largecaliber ammunition by different countries across the world.

North America Registered the Highest Market Share in 2019

In defense, the United States has the biggest budget in the world, with the Department Of Defense receiving nearly USD 720 billion in 2020. The United States is investing heavily in modernizing its navy, and in 2019 United States Navy tested HighVelocity Projectile, which is a Mach 3 shell capable of carrying three times more explosive than the existing ship ammunition shells fired from guns on frigates and destroyers. The projectile can be fired from both 127 mm and 155 mm guns. In 2020, the United States Marine Corps invested USD 10 million for the development of polymer cased largecaliber ammunition that will reduce the total ammunition load carried by combat units, thereby increasing battle efficiency and decreasing combat fatigue. In May 2020, the United States Army signed a deal of USD 7.9 million with Raytheon Technologies for the development of ramjetpowered long artillery shells in collaboration with the Netherlands Organization For Applied Scientific Research. Such development and procurement plans may drive the growth of the large caliber market in the US during the forecast period.

Competitive Landscape

The market for large caliber ammunition is fragmented with several players. Some of the prominent players in the market are General Dynamics, BAE Systems, Orbital ATK (Northrop Grumman), Rheinmetall AG, and Nammo AS. The market is driven by innovations in design, materials, lethality, etc. The increasing need for arms and ammunition is allowing the countries to strengthen their local and governmentowned ammunition companies. Countries, like Saudi Arabia, the United Arab Emirates, China, and India, are supporting local manufacturing companies to facilitate the need for their respective armed forces, thereby, helping the local companies to have a significant share in the market studied.

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1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Geography
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Canada
5.1.2 Europe
5.1.2.1 United Kingdom
5.1.2.2 Germany
5.1.2.3 France
5.1.2.4 Russia
5.1.2.5 Rest of Europe
5.1.3 Asia-Pacific
5.1.3.1 China
5.1.3.2 India
5.1.3.3 Japan
5.1.3.4 South Korea
5.1.3.5 Rest of Asia-Pacific
5.1.4 Latin America
5.1.4.1 Brazil
5.1.4.2 Rest of Latin America
5.1.5 Middle-East and Africa
5.1.5.1 United Arab Emirates
5.1.5.2 Saudi Arabia
5.1.5.3 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 Rheinmetall AG
6.2.3 BAE Systems PLC
6.2.4 Nexter group KNDS
6.2.5 Northrop Grumman Corporation
6.2.6 ST Engineering
6.2.7 Saab AB
6.2.8 Ukroboronprom
6.2.9 Denel SOC Ltd
6.2.10 Nammo AS
6.2.11 Global Ordnance
6.2.12 Diehl Stiftung & Co. KG
6.2.13 Leonardo S.p.A
6.2.14 Raytheon Technologies Corporation
7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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