Increased defense expenditure in emerging economies is expected to fuel ammunition market demand over the next eight years
Ongoing development in the economies in Asia have emerges as an opportunity for the defense companies. Countries such as China, India, Pakistan, and South Korea are building up military capabilities to ensure the law and order and protect international borders. This defense expenditure in the region varies significantly from country to country. For instance, Indonesia has almost doubled its defense spending in the last 5 years, whereas Laos and Cambodia have expanded their budgets slowly.
Ammunition mainly consists of bullets, rockets and mortars. All these ammos have different technologies, raw materials and manufacturing patterns. The size of the ammunition is measured in caliber which is diameter of the projectile (in inches or mm). The projectiles less than 20 mm or 0.6 inches are considered as small caliber.
Advancement and up gradation of arms and ammunition is another growth factor for ammunition market. According to Stockholm International Peace Research Institute (SIPRI), South East Asia together accounted for the second largest military expenditure from 2008-2012. Singapore accounted for 38%, followed by Malaysia and Vietnam with shares of 19% and 13% respectively.
However, as emerging economies are increasing their military expenditure the developed economies are declining their military budget. Despite Ukraine conflicts and rising tension with Russia, NATO has reduced its troops and expenditure on arms and ammunition. In addition, most of the allies have also reduced their troops. Germany reduced its military strength by 1,80, 000 in 2013 while UK has reduced its army to 1,74,000 troops..
Key industry players include General Dynamics Corporation, BAE Systems, Remington Arms Company, Inc., Ruag Ammotec, Poongsan Corporation, Federal Premium Ammunition and Maxam. In June 2013, General Dynamics Ordnance & Tactical Systems, a business unit of General Dynamics, received a Capability Maturity Model Integration (CMMI) Maturity Level 3 rating for its Seattle operations by Technical Software Services, Inc., of Pensacola, Fla., a licensed partner of the CMMI Institute. General dynamics’ Seattle operation is involved in the development, design and production of precision pyrotechnic and inflation systems, low-cost precision munitions manufacturing.
In-depth report on ammunition market by Grand View Research:
https://www.grandviewresearch.com/industry-analysis/ammunition-market