1 Global Artillery Ammunition Market Insight Analysis
The global artillery ammunition market size is expected to be USD 18,363.84 million in 2024, with a CAGR of 10.5% from 2024 to 2033.
Artillery is a class of heavy military ranged weapons that launch munitions far beyond the range and power of infantry firearms. Artillery can be divided into Cannon, Howitzer, and Mortar according to ballistic characteristics. Artillery Ammunition refers to the shells used by artillery, which contain explosives or others. Most of the Artillery Ammunition is usually a large pointed cylindrical object, the shape meets the requirements of aerodynamics.
Figure Global Artillery Ammunition Market Size (M USD) and CAGR (2024-2033)
2 Artillery Ammunition Market Growth Drivers and Restraints
Increased defense spending: As a key part of the national defense security strategy, the military industry is of great significance in enhancing national defense strength and promoting national defense military modernization. Countries continue to increase defense spending, and related military initiatives have also provided support for the renewal of military weapons and ammunition. For example, in March 2023, US President Biden proposed a defense budget of up to $88.6 billion, which included military pay raises and record R&D funding.
In the Asia-Pacific region, some countries are also constantly strengthening defense spending and actively purchasing artillery and mortar systems to defend border security. At the same time, countries around the world are paying more and more attention to actual military exercises, and the frequency of use of artillery weapons is increasing. These have greatly stimulated the demand for the artillery ammunition market and become a key driving force for market development.
The outbreak of the Russian-Ukrainian war: The outbreak of the Russian-Ukrainian war in February 2022 made artillery the most important means of firepower strike and support on the battlefield. The Russian army has nearly 6,000 large-caliber artillery and rocket launchers of various types, and Ukraine also had about 2,800 artilleries before the war. During the war, the consumption of artillery ammunition rose sharply.
In addition, the United States and its allies continue to provide a large amount of military assistance, including artillery and ammunition, to support Ukraine. For example, in April 2022, the United States announced that it would provide Ukraine with $800 million in military aid, including 155mm howitzers and a large number of artillery shells. The outbreak of war has led to a continuous increase in market demand for artillery ammunition, which has strongly promoted the development of the industry.
High threshold for production qualifications: The particularity of artillery ammunition determines that the government strictly regulates it. According to the government’s management regulations on military product production qualifications, enterprises engaged in the production and research and development of artillery ammunition are subject to license management. Before relevant enterprises carry out the production and sales of artillery ammunition, they must obtain a series of key military qualifications. The application requirements for these qualifications are extremely high, and the review cycle is long, which constitutes a high production qualification barrier in the artillery ammunition industry, seriously hindering the development of the industry.
High safety requirements and technical barriers: The research and development, production and storage of artillery ammunition involve many special processes, and the safety requirements are extremely high. There are many production links, complex technologies and processes, especially ammunition and fuses involve explosive handling during the production process, which is extremely dangerous.
In addition to clear and strict control standards and regulatory responsibilities for process flow, there are also high requirements for the safe production and storage conditions of enterprises. Enterprises face great difficulties in obtaining production sites and strictly controlling safe production and storage requirements, which has become an important factor restricting the development of the industry.
High customer concentration and macroeconomic fluctuations: The customers of the artillery ammunition industry are mainly concentrated in the defense departments and armies of various countries, and the market demand is greatly affected by factors such as the national security situation, defense policy and defense development level. Once the national defense strategy and policy change, leading to major adjustments in the military’s demand for military products, it will directly affect the development prospects of the artillery ammunition industry. For example, when the government cuts defense and military spending, the demand for artillery ammunition may decrease.
Information barriers: Artillery ammunition is a military product, and the demand for national defense military products is usually customized based on technical indicators and performance requirements. The specific indicators and performance information involved in the product are directly related to national defense security and military secrets, which determines that the release of national defense military product demand information is often limited to the industry.
In some cases, even within the military industry, due to the different confidentiality levels of various entities, there are differences in the timeliness and comprehensiveness of obtaining the required information. For most companies outside the national defense and military industry system, there is a lack of channels to obtain information on national defense and military industry technology and product demand, which poses a challenge to the development of the industry.
3 Technological Innovations in the Artillery Ammunition Market
Mainstream product trends: 155mm artillery ammunition has become one of the mainstream trends in the market due to its good balance between range and projectile size. It can be loaded with high explosive materials, equipped with precision guidance systems, and have armor-piercing capabilities or produce high fragmentation effects. During the Russian-Ukrainian war, the United States provided Ukraine with more than 1.5 million rounds of 155mm ammunition, highlighting the important position of this type of ammunition in modern warfare.
Development of precision guidance technology: Precision-guided artillery ammunition has become a key direction of technological innovation. This type of ammunition usually uses millimeter wave, infrared, laser or dual-mode seekers and fiber-optic guidance technology, which can accurately strike fixed and moving targets, and can even identify the authenticity of targets and attack the weak parts of tanks and armored vehicles. Take the M712 Copperhead as an example. It can be fired from a 155mm caliber artillery, uses laser terminal guidance, has a range of 40-57 kilometers, and a circular probable error of about 5-20 meters. It can effectively strike high-value targets such as tanks and self-propelled howitzers, significantly improving the strike accuracy and combat effectiveness of artillery.
Elbit Systems’ M&A initiatives: In November 2018, Elbit Systems completed the acquisition of IMI Systems for approximately US$495 million. IMI Systems is a world-renowned defense system company. This acquisition has greatly increased Elbit Systems’ strength in the field of artillery ammunition, and can provide more advanced and comprehensive artillery ammunition solutions for the global military. In April 2021, its US subsidiary completed the acquisition of Sparton Corporation for US$380 million. Sparton mainly provides submarine warfare support systems for the US Navy and allied forces. This acquisition further expanded Elbit Systems’ business areas.
Rheinmetall’s acquisition actions: In November 2022, Rheinmetall AG reached an acquisition agreement with MaxamCorp. Holding S.L. to acquire Expal Systems S.A. for 1.2 billion euros. Expal Systems is a world-renowned ammunition manufacturer. Through this acquisition, Rheinmetall aims to strengthen its core weapons, ammunition and propellant businesses, expand production capabilities and enrich its product portfolio.
4 Global Artillery Ammunition Market Size by Type
155 mm: Dominated with a revenue of 7615.72 million US dollars. It’s widely used in modern artillery systems for its balance of range and firepower, making it crucial in numerous combat and defense operations.
120 mm: Generated 2177.93 million US dollars. Commonly seen in mortar systems and some advanced artillery, offering a good blend of portability and firepower for diverse terrains.
105 mm: Brought in 1242.42 million US dollars. Popular in light and medium – sized artillery due to its manageable size for handling and transport while still providing adequate firepower.
81/82 mm: Achieved a revenue of 1222.87 million US dollars. Frequently used in mortars, essential for close – range support and urban warfare scenarios.
122 mm: Had a revenue of 1675.33 million US dollars, often used in specific artillery systems in certain regions.
60 mm: Generated 269.81 million US dollars, catering to specific military needs, perhaps for smaller – scale combat or specialized tasks.
57 mm: Contributed 135.81 million US dollars, likely serving particular applications like anti – aircraft or niche combat requirements.
40 mm: Had a revenue of 101.94 million US dollars, probably used in specific military equipment for certain operations.
76 mm: Brought in 45.15 million US dollars.
125 mm: Achieved 670.61 million US dollars.
130 mm: Generated 204.70 million US dollars.
152 mm: Contributed 2116.64 million US dollars.
Table Global Artillery Ammunition Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
40 mm | 101.94 | 0.56% |
57 mm | 135.81 | 0.74% |
60 mm | 269.81 | 1.47% |
76 mm | 45.15 | 0.25% |
81/82 mm | 1222.87 | 6.66% |
105 mm | 1242.42 | 6.77% |
120 mm | 2177.93 | 11.86% |
122 mm | 1675.33 | 9.12% |
125 mm | 670.61 | 3.65% |
130 mm | 204.70 | 1.11% |
152 mm | 2116.64 | 11.53% |
155 mm | 7615.72 | 41.47% |
Others | 884.89 | 4.82% |
5 Global Artillery Ammunition Market Size by Application
The revenue from the Fighting application in 2024 reached 14912.02 million US dollars. This accounted for approximately 81.2% of the total global artillery ammunition market revenue in that year, which was 18363.84 million US dollars. The significant revenue in this segment can be attributed to several factors. In recent years, armed conflicts around the world have led to a substantial demand for artillery ammunition in actual combat scenarios. For example, the ongoing conflicts in some regions have necessitated a continuous supply of artillery ammunition for offensive and defensive operations. This has spurred military forces to allocate significant budgets to procure artillery ammunition for fighting purposes.
On the other hand, the National Defense application generated a revenue of 3451.81 million US dollars in 2024, holding a share of around 18.8% of the total market revenue. National defense spending on artillery ammunition is mainly focused on long – term strategic preparedness. Governments invest in building up their arsenals to safeguard national sovereignty and territorial integrity. This includes stockpiling ammunition for potential future threats and maintaining a certain level of military deterrence.
Although the share is relatively smaller compared to the Fighting application in 2024, it is still a crucial part of the overall market. It reflects the continuous efforts of countries to maintain a strong national defense posture through the acquisition and storage of artillery ammunition. Overall, these two applications together make up the global artillery ammunition market, with the Fighting application taking the lion’s share in terms of revenue in 2024.
Table Global Artillery Ammunition Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Fighting | 14912.02 | 81.20% |
National Defense | 3451.81 | 18.80% |
6 Global Artillery Ammunition Market Size by Region
North America had a revenue of 6040.84 million US dollars, accounting for approximately 32.9% of the total global revenue of 18363.84 million US dollars. This region has a well – developed military – industrial complex. The United States, in particular, is a major player in the global defense market. It has a high – tech military infrastructure and invests heavily in research and development of artillery ammunition. The country’s geopolitical interests and military alliances also drive its demand for advanced artillery ammunition.
Europe generated a revenue of 11074.02 million US dollars, holding a share of around 60.3%. Europe has a long – standing history in military technology and manufacturing. Many European countries have significant defense budgets and are constantly upgrading their military arsenals. Geopolitical tensions in the region, such as the situation in Eastern Europe, have led to increased military spending on artillery ammunition. Additionally, European countries often collaborate on defense projects, which also promotes the development and trade of artillery ammunition within the region.
The Asia – Pacific region had a revenue of 1020.43 million US dollars, accounting for about 5.6%. This region is experiencing rapid economic growth and is increasingly focusing on strengthening its national defense capabilities. Some countries in the Asia – Pacific, like Japan and South Korea, which have security concerns due to regional geopolitical situations, are gradually increasing their defense spending on artillery ammunition. However, compared to North America and Europe, the overall market size in this region is relatively smaller, mainly due to differences in historical military development and current geopolitical environments.
Latin America had a revenue of 133.14 million US dollars, representing a share of approximately 0.7%. Although the region has a certain level of military forces, economic constraints and relatively lower geopolitical tensions compared to other regions limit its spending on artillery ammunition. However, with the potential for economic development and changes in regional security dynamics, there is room for growth in the future.
The Middle East & Africa region had a revenue of 95.41 million US dollars, accounting for about 0.5%. This region has been involved in various conflicts, but its spending on artillery ammunition is relatively limited compared to other major regions. Some countries in the Middle East rely on imports for their military needs, and economic instability in parts of Africa also restricts significant investment in artillery ammunition.
Figure Global Artillery Ammunition Market Size (M USD) by Region in 2024
7 Global Artillery Ammunition Market Analysis by Major Players
Rostec
Company Profile
Rostec is a Russian state-owned corporation established in 2007, specializing in the development, manufacture, and export of high-tech industrial products for both civilian and military use. The company operates primarily in Russia and has a significant presence in the global defense market.
Business Overview
Rostec is engaged in the design and manufacture of a wide range of military and civilian products, including high-precision artillery ammunition, multiple rocket launchers, unguided air and small-caliber ammunition, aerial bomb weapons, automatic and sniper warfare weapons, and guided shells. The company’s products are known for their reliability and advanced technology, making them a preferred choice for many defense forces worldwide.
Product Offered
Rostec offers a variety of artillery ammunition products, including the Krasnopol guided artillery complex, which includes a high-explosive guided shell and a laser target designator. This 152-mm shell can be used with various artillery systems and is capable of traveling up to 20 km with a payload of 8 kg.
2023 Revenue and Gross Margin Summary: In 2023, Rostec reported a revenue of $2,828.03 million USD, with a gross margin of 25.02%. This strong financial performance underscores Rostec’s dominant position in the global artillery ammunition market.
General Dynamics Corporation
Company Profile
General Dynamics Corporation is an American defense conglomerate established in 1952. The company is a global leader in aerospace and defense, providing a wide range of products and services to the U.S. military and its allies.
Business Overview
General Dynamics Corporation consists of three business groups: Marine, Combat Systems, and Information Technology. The company is committed to providing advanced defense solutions, including artillery ammunition, to enhance the capabilities of military forces worldwide. General Dynamics is known for its innovative products and continuous expansion through strategic acquisitions.
Product Offered
One of General Dynamics’ notable products is the 120mm ELOS (Extended Line of Sight) tank round. This round features a Lockheed Martin-designed advanced seeker coupled with a custom-designed control actuation system, providing precision engagement capabilities for modern Abrams tanks.
2023 Revenue and Gross Margin Summary: In 2023, General Dynamics Corporation reported a revenue of $1,114.75 million USD, with a gross margin of 25.92%. This robust performance highlights the company’s strong market position and its ability to deliver high-quality artillery ammunition solutions.
BAE Systems PLC
Company Profile
BAE Systems PLC is a multinational arms industry and aerospace equipment company headquartered in London, UK. Established in 1999 through the merger of British Aerospace and Marconi Electronic Systems, BAE Systems is a leading provider of defense, aerospace, and security solutions.
Business Overview
BAE Systems PLC operates in multiple markets, including Europe, the U.S., Saudi Arabia, Australia, and India. The company is involved in the development, design, manufacture, and support of advanced defense products, including artillery ammunition. BAE Systems is known for its commitment to innovation and delivering cutting-edge solutions to its customers.
Product Offered
One of BAE Systems’ key products is the L31 High Explosive 105mm shell, designed for use with the BAE Systems 105mm Light Gun L118. This shell offers higher consistency of range and accuracy compared to other similar products and is combat-proven, making it a reliable choice for military forces.
2023 Revenue and Gross Margin Summary: In 2023, BAE Systems PLC reported a revenue of $891.35 million USD, with a gross margin of 26.16%. This performance reflects the company’s strong market position and its ability to provide high-quality artillery ammunition solutions to its global customer base.