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.
Surge in Military Spending Drives Global Ammunition Procurement
The increase in military expenditure is a key factor fueling the global demand for ammunition and firearms. According to SIPRI data, U.S. military spending rose from approximately $734 billion in 2019 to $800 billion in 2021. Since 2020, a sharp rise in ammunition demand has significantly boosted market growth. Defense reports indicate a substantial surge in ammunition procurement between 2020 and 2021. Additionally, growing commercial applications—such as hunting and shooting sports—have further accelerated demand for firearms and ammunition, strengthening the industry.
North America Ammunition Market Overview
The North American ammunition market is segmented into the U.S., Canada, and Mexico. Factors such as rising terrorism threats and relaxed gun regulations are expected to drive bullet usage in the region. SIPRI data shows that U.S. military spending increased from $801.68 billion in 2020 to $827.12 billion in 2021, reflecting a broader trend of heightened defense investments in North America.
The frequent use of munitions by armed forces, coupled with escalating terrorist activities, has further amplified ammunition consumption in the region. To meet this demand, North American governments and private firms have entered into multiple contracts with leading ammunition suppliers, propelling market expansion.
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
