North America Ammunition Market Analysis, Size, Share Key Segments Poised for Strong Growth 2028
The ammunition market in North America is expected to grow from US$ 14,420.06 million in 2022 to US$ 23,144.92 million by 2028. It is estimated to grow at a CAGR of 8.2% from 2022 to 2028.
Global Ammunition Demand Driven by Rising Military Spending
Global military expenditure is a primary driver behind the increased procurement of ammunition and firearms worldwide. For example, data from the Stockholm International Peace Research Institute (SIPRI) shows that the United States’ military spending rose from US$734 billion in 2019 to US$778 billion in 2020, and further to US$800 billion in 2021. This significant increase in defense budgets has directly fueled a surge in ammunition demand since 2020. Several defense sources confirm that the firearm and ammunition industry experienced substantial growth between 2020 and 2021 due to heightened procurement. Beyond military applications, the commercial sector, including hunting and shooting sports, has also seen a rise in demand for ammunition and firearms, further boosting the industry.
North American Ammunition Market Overview
The North American ammunition market, encompassing the US, Canada, and Mexico, is experiencing robust growth. Factors such as the persistent threat of terrorism and relatively lenient gun laws contribute to the increased usage of ammunition in the region. SIPRI data indicates a continuous rise in US military expenditure, climbing from US$801.68 billion in 2020 to US$827.12 billion in 2021. This trend in military spending by North American countries significantly impacts the regional ammunition market’s expansion.
The heightened use of munitions by armed forces and a high incidence of terrorist activities have directly led to greater ammunition consumption in North America, acting as key catalysts for market growth. Furthermore, numerous contracts between North American governments and companies with major ammunition manufacturers for supply have played a crucial role in driving the region’s ammunition market forward.
North America Ammunition Market Segmentation:
- North America Ammunition Market By Product Type
- Aerial Bombs (Dominant segment in 2021)
- Bullets
- Grenades
- Artillery Shells
- Mortars
- Others
- North America Ammunition Market By Application
- Defense (Largest market share in 2021)
- Commercial
- North America Ammunition Market By Guidance
- Guided (Leading segment in 2021)
- Non-Guided
- North America Ammunition Market By Lethality
- Lethal (Dominant segment in 2021)
- Non-Lethal
- North America Ammunition Market By Caliber
- Large Caliber Ammunition (Largest share in 2021)
- Medium Caliber Ammunition
- Small Caliber Ammunition
- North America Ammunition Market By Country
- United States (U.S.) (Dominant market in 2021)
- Canada
- Mexico
North America Ammunition Market Key Players
Leading companies in the North America ammunition market include:
- AMTEC Corporation
- BAE Systems
- Elbit Systems Ltd
- NAMMO AS
- Northrop Grumman Corporation
- Raytheon Technologies Corporation
- Rheinmetall AG
- RUAG Group
- Thales Group
- Vista Outdoor Operations LLC
North America Ammunition Market Insights
- Aerial bombs led the product segment, driven by military modernization programs.
- The defense sector dominated due to high government spending on armed forces.
- Guided ammunition held a larger share, reflecting advancements in precision-strike capabilities.
- Lethal ammunition was preferred for combat and training applications.
- Large caliber ammunition (used in artillery and armored vehicles) accounted for the highest demand.
- The U.S. was the largest market, supported by its robust defense budget and military-industrial base.
North America Ammunition Market Strategic Insights
Strategic insights for the North America Ammunition provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.
North America Ammunition Market Regional Insights
The geographic scope of the North America Ammunition refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.
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Author’s Bio:
Suryakant Gadekar
Senior Market Research Expert at Business Market Insights