Ammunition Market worth $66.06 billion by 2031 - Exclusive Report by MarketsandMarkets™

The Ammunition Market is projected to grow from USD 34.81 billion in 2026 to USD 66.06 billion by 2031 at a CAGR of 13.7%. The market is supported by higher defense spending, ongoing military modernization programs, and the need to replenish stockpiles due to active conflicts. Demand is also increasing as countries strengthen local production capacity and maintain readiness across defense and security forces.

Market Size & Forecast
• 2025 Market Size (Value): USD 31.17 Billion
• 2031 Market Forecast (Value): USD 66.06 Billion
• CAGR: 13.7% from 2026-2031
• European Ammunition Market: 37.8% Revenue Share in 2025
• Large Caliber Ammunition Segment: CAGR of 16.6%

KEY TAKEAWAYS
The European ammunition market accounted for a 37.8% revenue share in 2025.
The large caliber ammunition segment is projected to register the highest CAGR of 16.6% during the forecast period.
The military segment is projected to be the dominant end user during the forecast period.
The projectiles and warheads segment is projected to be the dominant component during the forecast period.
BAE Systems, Nammo AS and Northrop Grumman were identified as some of the star players in theammunition market, given their strong market share and product footprint.
Adani Defence and Aerospace, China North Industries Corporation (NORINCO), and POLSKA GRUPA ZBROJENIOWA S.A., among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders
The Ammunition Industry is supported by rising defense budgets and ongoing military modernization programs across major economies. Active conflicts and geopolitical tensions are increasing the need to replenish stockpiles and be ready for operations. Governments are also investing in domestic production to reduce supply chain risks and ensure a steady supply. The market is expected to continue growing as countries prioritize defense preparedness and long-term procurement planning.

TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The ammunition market is shaped by changing requirements of military forces and homeland security agencies. Current revenue mainly comes from small caliber ammunition, standard artillery rounds, non-guided mortars and conventional fuzes. In the coming years, demand is expected to shift toward guided and precision ammunition, programmable airburst fuzes, long-range rockets and improved propellants. Stockpile replacement in NATO and allied countries and expansion of 155 mm production capacity are influencing procurement plans. As a result, manufacturers need to focus on higher production capacity, reliable supply and technology upgrades to meet future defense needs.

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