The global ammunition market is expected to grow from an estimated USD 6.97 billion in 2015 to USD 7.78 billion by 2020, at a CAGR of 1.93% from 2015 to 2020. The market for ammunition is driven by critical factors, such as rise in terrorism and armed conflicts, increasing defense budgets of emerging economies, and the adoption of military modernization programs by developing economies across the globe.
The following chart represents the segmentation and coverage of this market report.
Civil application segment to witness higher growth during the forecast period
The key applications considered for the market study are defense and civil, wherein the overall ammunition market is dominated by the defense segment. However, the civil segment is projected to grow at a comparatively higher CAGR during the forecast period of 2015 to 2020, primarily driven by the increasing demand for small caliber ammunition from civilians for sporting, hunting, and self-defense purposes. This trend is mainly being witnessed in the European region.
Asia-Pacific dominates; Africa to grow at the highest rate
The Asia-Pacific region dominates the global ammunition market, primarily owing to the military modernization programs across the major economies of the region driven by their increasing military budgets. China, India, and South Korea are the key nations impacting the dynamics of the Asia-Pacific market for ammunition. The market in Africa is projected to grow at the highest CAGR during the forecast period. This rapid growth can be attributed to the increased procurement of small and medium caliber ammunition by defense and law enforcement agencies of the region for enhanced border security and counter-terrorist operations.
