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.
Rise in Military Spending Drives Global Ammunition Procurement
The steady increase in global military expenditure is a key driver behind the growing procurement of ammunition and firearms. According to data from the Stockholm International Peace Research Institute (SIPRI), U.S. military spending rose from approximately US$ 734 billion in 2019 to US$ 778 billion in 2020, and further to US$ 800 billion in 2021. This upward trend in defense budgets has significantly contributed to the surge in demand for ammunition since 2020.
Additionally, various defense sources report a sharp increase in firearm and ammunition procurement between 2020 and 2021. Beyond military applications, commercial sectors such as hunting and shooting sports have also seen a rise in demand for firearms and ammunition, further fueling the industry’s growth.
North America Ammunition Market Overview
In North America, the ammunition market is segmented into the U.S., Canada, and Mexico. The region’s increasing focus on national security, coupled with lenient firearm regulations—particularly in the U.S.—continues to drive ammunition consumption. SIPRI data shows U.S. military spending increased from US$ 801.68 billion in 2020 to US$ 827.12 billion in 2021, reinforcing the region’s commitment to defense readiness.
The growing use of munitions by armed forces and the persistent threat of terrorism have contributed to heightened ammunition usage across North America. Furthermore, governments and private defense firms in the region have entered into multiple contracts with leading ammunition manufacturers, which is further propelling market growth.
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
