Medium-caliber ammunitions are available in a wide variety of different specifications such as high explosive incendiary, armor piercing incendiary, target practice tracer, target practice marker, high explosive dual purpose grenades, and high explosive dual purpose with self-destruction grenades, and much more. The size of the caliber in the medium-caliber ammunitions ranges from 20mm to 57mm and these are used mostly by the military as per their specifications. Manufacturers in the ammunition industry are launching new products and engaging in collaboration with other companies to expand their business worldwide. The companies are stimulated by the increased demand from the defense forces across various countries, procuring specific sized medium-caliber ammunition.
Various nations have increased their defense budget by putting an immense importance on their national and border security. The increasing defense budget directly impacts the procurement of military equipment and strongly emphasizes on the aspect of purchase of munitions including medium-caliber ammunition rounds. The U.S. had the highest defense budget for FY 2017, including army, navy and air force defense budgets for wide-range of ammunition. China also contributes a substantial share in the overall global defense budget among the fastest growing economies. The countries in the Asia Pacific region are constantly emphasizing and increasing their defense budget to enhance their military power.
The global medium-caliber ammunition market was estimated to generate a revenue of $732 million in 2016. The rising internal, as well as cross-border conflicts among nations, the threat of war and the increased terrorist activities, have pushed nations to consider upgrading their defense system and this has led to the growth in the medium-caliber ammunition market as well as other ammunition. However, the adverse environmental impact due to the toxic propellants and demilitarization of ammunition are creating hurdles in the growth of this market. Various governments are taking initiative towards reducing the harmful effects of propellants on nature and the human health by minimizing the use of such cartridges and replacing the propellants with environmental friendly rounds.
The increasing demand for smart weapons is increasing across the world as they are precision-guided munitions and more lethal than conventional weapons. Hence, this will open more opportunities for the medium-caliber ammunition in the market. The market will also witness increasing opportunities in the regions of Asia Pacific, Latin America, and Rest of the World. The rising economies are gradually increasing their degree of defense procurement, more so in the Asia Pacific region because of the growing threats.
Defence forces are the major end-user of this market and many forces across the world are engaging in contracts with the leading manufacturers for the production of a specific range of medium-caliber ammunition. These ammunition are mainly used in guns, autocannons, and cannons, and have the lethality to be used against light armor, military equipment and materials. Among different types of available calibers, 20mm caliber held the largest market share in 2016, followed by 40mm, 30mm, 25mm and others, and the market is expected to follow this trend in the coming years.
BIS Research has conducted an extensive market research on ‘Global Medium-Caliber Ammunition Market- Analysis & Forecast (2017-2021)′. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.