South & Central America 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)]
The ammunition market in South & Central America is expected to grow from US$ 2,528.09 million in 2022 to US$ 3,270.05 million by 2028. It is estimated to grow at a CAGR of 4.4% from 2022 to 2028.
Technological Advancements Across Firearms Industry
Technological advancements in the firearm industry are generating huge demand for new and advanced ammunition across the world. It has been witnessed that the introduction of new guns and launchers has been rising over the past few years, which is increasing the demand for new and innovative firearm components. For instance, the introduction of longer 52 caliber barrels has led to an increased range of 155mm guns, which has been adopted by several armed forces such as army, navy, and air forces. These barrels are also likely to replace the traditional 39 caliber systems and cater to the low range challenges of such barrels.
Further, several projects launched by armed forces to introduce new guns and firearms are also likely to propel the introduction of new firearm parts that are expected to catalyze the ammunition market growth. Moreover, the use of composite materials in the missiles and guided munitions across different armed forces are expected to boost the market in the coming years.
The ammunition market in South America is bifurcated into Brazil and the Rest of South America. The Rest of South American countries include Argentina, Chile, Colombia, and others. South American countries have experienced a rise in military expenditure over the years. This growth is attributed to the rising government initiatives to strengthen their military and law enforcement agencies to protect against external and internal threats by acquiring advanced equipment and weapons across South American countries. South American countries such as Brazil, Peru, Argentina, Bolivia, and Colombia are involved in the production and export of munitions. This growth in ammunition trade across South America is also boosting the growth of the ammunition market in the region. The constant supply, availability, and proliferation of ammunition to civilians, law enforcement, and the military is one of the major factors driving the ammunition market in South America. Brazil and Argentina, for example, are involved in the production and export of ammunition. The expansion of the ammunition trade in South America is also boosting the market growth. Changing laws and regulations regarding civilian use of arms and ammunition are expected to provide growth opportunities for the SAM ammunition market during the forecast period. Major players in the South America ammunition market are CBC, FAMAE - Fábricas y Maestranzas del Ejército Todos Los Derechos Reservados, Aguila Ammunition, IMBEL, and OTIC-CAVIM. Most of the players are local players and state-owned enterprises, providing support of ammo to relevant local border guards, military personnel, and law enforcement officers, such as police officers. Global players can enter the South America market based on brand equity and capture a large market share with a few local players in the region. Further, ongoing ammunition deals and renewals with existing local state market players are likely to be an entry barrier for foreign players. Such involvement of local players in the ammunition market is driving the growth of ammo and creating the revenue for the South America region.
South & Central America Ammunition Market Revenue and Forecast to 2028 (US$ Million)
South & Central America Ammunition Market Segmentation
The South & Central America ammunition market is segmented into product, application, guidance, lethality, caliber, and country.
The South & Central America ammunition market, by product type, is segmented into bullets, aerial bombs, grenades, artillery shells, mortars, and others. In 2021, the aerial bombs segment dominated market.
The ammunition market by application is segmented into defense and commercial. In 2021, the defense segment dominated the South & Central America ammunition market.
The South & Central America ammunition market, by guidance, is segmented into guided and non-guided. In 2021, the guided segment held a larger market share in 2021.
The South & Central America ammunition market by lethality is segmented into non-lethal and lethal. In 2021, the lethal segment held a larger market share in 2021.
The South & Central America ammunition market, by caliber, is segmented into small caliber ammunitions, medium caliber ammunitions, and large caliber ammunitions. In 2021, the large caliber ammunitions segment held the largest market share in 2021.
Based on country, the market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the market in 2021.
BAE Systems, Elbit Systems Ltd, Northrop Grumman Corporation, Raytheon Technologies Corporation, and Thales Group are the leading companies operating in the ammunition market in the region.
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