Small Caliber Ammunition Market Size, Share, Trends, Growth and Forecast 2030

Small Caliber Ammunition Industry Prospective:

The global small caliber ammunition market size was worth around USD 10.91 billion in 2022 and is predicted to grow to around USD 14.08 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.24% between 2023 and 2030.

Request Free Sample

Small Caliber Ammunition Market: Overview

Small caliber ammunition refers to ammunition variants that are designed especially for small-diameter firearms. Ammunition is defined as material that is scattered, fired, detonated, or dropped from a weapon system. Small caliber ammunition is used extensively in conflict zones and plays a crucial role in prolonging, escalating, or intensifying the results of armed conflict. Ammunition made for small arms also has commercial applications contributing to overall market growth. These ammunition typically use cartridges for functional purposes and consist of 4 main units. A bullet or a projectile consisting of a core and typically fired from a gun. The second component is a propellant and generates gas pressure when ignited. The next part is a primer which is made of chemical compounds that are designated to be ignited once the pin is fired or triggered. The last component is a cartridge case that acts as a unit containing all components used for a complete round of ammunition. Small caliber ammunition is .50 caliber and below thus significantly different from long range ammunition. The market for small caliber ammunition is growing at a rapid rate and is expected to continue the trend during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global small caliber ammunition market is estimated to grow annually at a CAGR of around 3.24% over the forecast period (2023-2030)
• In terms of revenue, the global small caliber ammunition market size was valued at around USD 10.91 billion in 2022 and is projected to reach USD 14.08 billion, by 2030.
• The small caliber ammunition market is projected to grow at a significant rate due to the increasing investments toward national security
• Based on application segmentation, military & homeland security was predicted to show maximum market share in the year 2022
• Based on bullet type segmentation, lead was the leading SEGMENT 2 in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Request Free Sample

Small Caliber Ammunition Market: Growth Drivers

Increasing investments toward national security will act as a crucial growth driver

The small caliber ammunition market is expected to grow due to the increasing interest and investments toward national security across the globe. The ongoing war and armed conflict between several nations worldwide has created an urgent need to ensure that regional defense systems are upgraded with modern arms and ammunition. These events impact the demand for small-caliber ammunition in multiple ways. On one hand, these impact regional security trends while also creating demand for ammunition to be used in war or conflict zones for either attacking the other party or safeguarding national interest as a means of retaliation. For instance, a November 2022 report by NBC News pointed out that Russia and Ukraine were firing more than 24000 artillery rounds every day. Since then, multiple reports have claimed that Ukraine has insisted on increasing its ammunition supply. The same pattern is observed in Russia and other neighboring countries. In other news, Japan has been focusing on improving its national defense teams by investing more resources as the country currently relies heavily on its allies for arms and artillery. In December 2023, the country announced its new budget for the Japanese Self-Defense Forces (JSDF). The investment totaled USD 52 billion and is around 26% higher than the allotted budget in 2022.

Consistent investment in new and efficient firearms to create higher market demand

The industry for small caliber ammunition is expected to benefit from the consistent investment in the development of new and efficient firearms with barrels showing small diameters. Small caliber ammunition is used in a wide range of firearms including submachine guns, rifles, handguns, and machine pistols. Arms manufacturers are constantly delivering improved products with higher precision and safety features resulting in greater demand for supporting ammunition. In April 2022, the US Army launched 2 new rifles to be used in close combat. The manufacturer is SIG Sauer and the automatic rifles are called XM250 and XM5.

Small Caliber Ammunition Market: Restraints

Intensifying gun control and commercial use of small caliber ammunition to restrict market growth

The global small caliber ammunition market growth is expected to be restricted due to the growing concerns over the commercial use of firearms and small caliber ammunition. In recent times, multiple cases of irresponsible and unregulated use of small-diameter firearms have been highlighted leading to civilian fatalities. In addition to this, international welfare agencies along with regional regulatory authorities are working toward drafting guidelines that have better and stronger control over the production rate of small caliber ammunition along with other weapons. The extreme stringency of production and export-related rules will likely discourage new players from entering the market.

Small Caliber Ammunition Market: Opportunities

Growing demand for lead-free small caliber ammunition to create growth opportunities

Most currently used small caliber ammunition contains high quantities of lead. The increasing use of these ammunition has raised concerns over lead content passing to the environment and leading to pollution. As per official reports, gun ranges produce thousands of toxic waste annually and gunpowder generally consists of harmful gasses such as suspended particles, carbon monoxide, and others. This has led to a growing demand for more environmentally-friendly small caliber ammunition. For instance, the US Army initiated the phasing out of the M-862 Short Range Training System with a greener option containing zero lead content. Tungsten was the leading material that was researched as a substitution for lead. Furthermore, as of 2020, the US Army was reported to be working with Purdue University to develop eco-friendly ammunition with small, medium, and large calibration thus helping in the growth of the global small caliber ammunition industry.

Increasing regulated commercial application of small caliber ammunition may deliver high growth rate

Small caliber ammunition is used extensively for commercial applications including training, shooting sports, self-defense, pest control, and hunting. However, these applications are closely monitored by regulatory authorities and increased demand for commercial sale of firearms supported by small caliber ammunition is projected to deliver a high growth rate during the forecast period.

Small Caliber Ammunition Market: Challenges

Illegal use of ammunition with small caliber may challenge market expansion trend

The global small caliber ammunition industry growth is projected to be challenged by the growing illegal use of small caliber ammunition. It includes the sale of the dark web or to unauthorized authorities. Furthermore, the growing access to these ammunition among terrorist groups is a crucial challenge for industry players since these transactions impact national and personnel safety.

Small Caliber Ammunition Market: Segmentation

The global small caliber ammunition market is segmented based on application, caliber, bullet type, and region.

Based on application, the global market segments are military & homeland security and commercial. In 2022, the highest growth was registered in the military & homeland security segment pushed by the higher emphasis on developing efficient ammunition for managing law & order in an economy. Furthermore, the higher rate of political tensions between global economies led to increased sales of small caliber ammunition being used in war zones. In 2022, Russia spent nearly USD 75 billion on the military.

Based on caliber, the global small caliber ammunition market divisions are 9mm Luger, 223 Remington, 40 S&W, 308 Winchester, 357 Magnum, 20 Gauge, 12 Gauge, 10 Gauge, 6.5 Grendel, 50 BMG, 22 LR, and others.

Based on bullet type, the small caliber ammunition industry divisions are brass, copper, lead, and others. During the forecast period, the copper segment is projected to grow at a steady pace driven by excellent inherent properties such as lightweight features and extremely consistent performance. Furthermore, copper ammunition tends to deliver higher precision and penetrate deeper than other variants. The lead segment is currently one of the leading bullet types and market players are looking at exploring more environmentally-friendly options. A single shot from a 30-30 Winchester contains around 8.1 grams of lead.

Small Caliber Ammunition Market: Report Scope

Small Caliber Ammunition Market: Regional Analysis

North America to register the highest growth rate during the projection period

The global small caliber ammunition market will be led by North America during the forecast period with the US acting as the leading driver. The country is home to some of the world’s biggest arms and ammunition developers including players such as General Dynamics Corporation, Olin Corporation, and Vista Outdoor Inc. Each of these companies has registered extensive net profit in 2023 since the US has been a key supplier of advanced ammunition including small caliber variants to other countries apart from having an existing large regional market for small caliber ammunition. The country spends billions of dollars every year on homeland security and national defense. The increased focus on developing more accurate and highly efficient ammunition will further help the market growth. Europe is a significant player with France, Germany, and the United Kingdom delivering high results. France is registering high international trading partnerships. The ongoing Russia-Ukraine war has assisted in higher demand for small caliber ammunition in the European market.

Small Caliber Ammunition Market: Competitive Analysis

The global small caliber ammunition market is led by players like:

• Remington Arms Company
• Olin Corporation
• Sellier & Bellot
• Vista Outdoor Inc.
• Magtech Ammunition
• Hornady Manufacturing Company
• Armscor
• Fiocchi Ammunition
• Prvi Partizan
• Lapua
• Wolf Ammunition
• PMC Ammunition
• Speer
• Norma Precision AB

The global small caliber ammunition market is segmented as follows:

By Application

• Military & Homeland Security
• Commercial

By Caliber

• 9mm Luger
• 223 Remington
• 40 S&W
• 308 Winchester
• 357 Magnum
• 20 Gauge
• 12 Gauge
• 10 Gauge
• 6.5 Grendel
• 50 BMG
• 22 LR
• Others

By Bullet Type

• Brass
• Copper
• Lead
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa