According to a new publication by Transparency Market Research, small caliber ammunitions have consistently been the most popular type of ammo available. The demand for small caliber rounds is steadily increasing across the world and players are therefore focusing more on them at the moment. Key players such as Fiocchi Munizioni S.p.A., Nammo A.S., General Dynamics Corporation, and Hornady Manufacturing Company, Inc., are all focusing on Asia Pacific and Europe in order to meet the increasing demand for arms and ammunitions in these regions.
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The developing economies in the Asia Pacific region are ramping up their demand for ammunition. The TMR report states that there is expected to be a very high interest among prominent players to improve sales and distribution of ammunition in this region.
Ammunitions Manufacturers Vie to Meet Demand Spurred by Worsening Geopolitical Conflicts
“Several countries are currently facing problems in defense and peacekeeping,” states a TMR analyst. “Countries such as India, China, South Korea, and Pakistan for instance, are racing to procure more arms and ammunitions to help quell the growing counts of terrorist disturbances and growing number of violent disputes.”
While nations such as the U.S. are undergoing a steady rate of demilitarization, nations from the MEA and Asia Pacific are ramping up their ammunitions consumption. Russia is currently the leading consumer of ammunitions in the world. It is also one of the leading exporters of ammunition to Asia Pacific nations.
Demilitarization and the ATT Will Affect Ammunition Consumption in the Long Run
The Arms Trade Treaty was forged in 2014 and it strengthens the regulations that ammunitions manufacturers need to adhere to in order to receive approval for sales. It pertains to conventional weapons and international weapons trade and aims for reducing the weapons count and improve the scope of maintaining peace, social and national cooperation, and complete transparency in action.
These are indirect restrictions in the overall sale of ammunitions from a global standpoint as the treaty heavily restricts the export of ammunitions and weapons.
Additionally, nations from North America and Europe had initiated a steady demilitarization of their forces after the wars in Iraq and Afghanistan ended. This is expected to reduce the demand for ammunitions even further.
Growing Europe Counter-terrorism Initiatives Spur Sales of Ammunitions
The global market for ammunitions is expected to progress at a CAGR of 3.7% within a forecast period from 2015 to 2021. This market is expected to be valued around US$14.8 bn by the end of 2021, a valuation attributed largely to the increasing terrorism concerns and the growing arms race in the Middle East and APAC.
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Small caliber rounds are expected to maintain popularity in all regions. By the end of 2021, this segment is expected to generate over US$4.3 bn in revenue. In terms of ammunitions type, full metal jacketed bullets are expected to be the dominant segment, grossing over US$7.2 bn by 2021.
Europe had and is expected to continue leading the global demand for ammunitions, an estimate attributed to the rapidly increasing anti-terrorism initiatives taken in the region. By the end of 2021, Europe is expected to generate around US$5.1 bn in revenue.
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