NATO Ammunition Market Report and Forecast 2024-2032

NATO Ammunition Market Outlook

The NATO ammunition market size reached approximately USD 7.48 billion in 2023. The market is projected to grow at a CAGR of 3.2% between 2024 and 2032, reaching a value of around USD 9.97 billion by 2032.

Key Trends in the Market

Ammunition is a term used for all types of materials launched or dropped from any weapon and weapon system. It is a crucial component for the functioning of firearms and military equipment. Ammunition can be availed in a wide variety of types and calibres, tailored to the specific needs of different weapons, environments, and missions.

• Rapid ammunition technology advancements are significantly influencing the NATO ammunition market growth. With the incorporation of cutting-edge materials, precise engineering techniques, and intelligent munitions systems, there has been a substantial enhancement in the overall performance and efficiency of ammunition. Notably, progress in guided munitions and precision-strike capabilities has elevated the accuracy and lethal potential of NATO ammunition.

• The growing usage of non-lethal ammunition is one of the most significant NATO ammunition market trends. This shift is motivated by the necessity for managing crowds and undertaking humanitarian operations amid growing political and social instability. These types of munitions are purposefully designed to immobilise or discourage without inflicting deadly harm. The advancement of non-lethal alternatives holds immense importance for NATO forces actively involved in peacekeeping and stabilisation missions.

• The NATO ammunition market demand is propelled by the increasing popularity of smart or guided ammunition. The push towards this trend is fuelled by a demand for heightened precision, minimised unintended damage, and enhanced discernment of targets. Smart ammunition is outfitted with intricate guidance systems, GPS technology, and sophisticated sensors, allowing it to dynamically adjust its path and target in real time.

Market Analysis

Based on calibre, the market can be segmented into small, medium, and large. The NATO ammunition market segmentation, based on product, includes rimfire and centrefire. Based on the weapon platform, the market divisions include aerial, terrestrial, and naval.

The market, based on end use, is divided into defence and civil and commercial. The major regional markets for ammunition in NATO are the United States, Germany, France, the United Kingdom, Canada, and Italy, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the NATO ammunition market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Northrop Grumman Corporation 

• BAE Systems plc

• General Dynamics Corp. 

• Rheinmetall AG 

• RWS GmbH 

• FN HERSTAL, S.A. 

• CBC Global Ammunition 

• Nammo AS 

• AMMO, Inc. 

• MESKO S.A.

• Others

Market Share by Product

According to the NATO ammunition market analysis, rimfire is likely to show substantial growth during the forecast period. The development of the ammunition type can be attributed to its various benefits, including cost affordability, low recoil, and lightweight. Rimfire cartridges typically have lower power and recoil compared to centrefire cartridges. Moreover, these firearms produce less noise and muzzle blast compared to centrefire firearms.

Market Share by End-Use

The increasing investments by governments in defence are expected to significantly influence the NATO ammunition market share in the coming years. Military forces rely heavily on various types of ammunition, ranging from small arms ammunition to artillery shells, missiles, and explosives. Additionally, private security firms may use firearms and ammunition for protection and security services, especially in regions where private security is prevalent.

Competitive Landscape

Northrop Grumman Corporation stands as a prominent American multinational enterprise specialising in aerospace and defence technology. Renowned globally, it ranks among the foremost defence contractors, offering an extensive array of goods and services to both government entities and commercial clients. This corporate entity came into being in 1994 after the merger of two significant players in the aerospace and defence sectors, Northrop Corporation and Grumman Corporation.

BAE Systems plc is a British multinational defence, security, and aerospace company. It is one of the largest defence contractors in the world, operating in the sector and offering a wide range of products and services to governments, armed forces, and commercial clients globally. The company has been involved in a range of high-profile projects, including the Eurofighter Typhoon, the F-35 Lightning II, the Astute-class submarines, and the Queen Elizabeth-class aircraft carriers.

General Dynamics Corp. is a prominent American multinational corporation specialising in aerospace and defence. It stands as one of the leading defence contractors worldwide, offering an extensive array of goods and services to governments, military entities, and commercial enterprises across the globe. General Dynamics actively engages in collaborations with various organisations, including government agencies, research institutions, and sector partners. 

Other NATO ammunition market players include Rheinmetall AG, RWS GmbH, FN HERSTAL, S.A., CBC Global Ammunition, Nammo AS, AMMO, Inc., and MESKO S.A., among others.

Key Highlights of the Report