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The global military ammunition market 2013 2023

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The report provides detailed analysis of the market for military ammunition during 2013-2023, including the factors that influence why countries are investing or cutting expenditure on military ammunition. It provides detailed expectations of growth rates and projected total expenditure.
The global ammunition industry is expected to witness a steady rise in the number of joint ventures and strategic alliances during the forecast period, due to the insufficient indigenous manufacturing capabilities of numerous countries such as the US, India, and Brazil. These countries are dependent on foreign ammunition manufacturers in order to meet demand and develop indigenous ammunition manufacturing capabilities. Some recent notable joint ventures are mentioned below:
By the end of 2013, Russia and India are expected to establish a joint venture to manufacture ammunition for the Smerch multiple launch rocket system in India. The Russian firms Rosoboronexport and OAO NPO Splav are expected to form a joint venture with the artillery production department of the Indian defense ministry in order to produce, as well as provide after sales support to, the specified ammunition in India.

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The global military ammunition market 2013 2023

  1. 1. The Global Military Ammunition Market 2013 - 2023 Product Synopsis This report is the result of SDI's extensive market and company research covering the global military ammunition industry. It provides detailed analysis of both historic and forecast global industry values, factors influencing demand, the challenges faced by industry participants, analysis of the leading companies in the industry, and key news. Introduction and Landscape Why was the report written? “The Global Military Ammunition Market 2013-2023” offers the reader detailed analysis of the global military ammunition market over the next ten years, alongside potential market opportunities to enter the industry, using detailed market size forecasts. What are the key drivers behind recent market changes? Numerous countries in the world are currently involved in conflicts with their neighboring nations owing to reasons such as territorial disputes and terrorism. This situation is most commonly evident in the Asia Pacific region due to the rapid economic and military development among countries such as China, India, Japan, South Korea and North Korea among others. All the above mentioned countries are making rapid efforts in order to strengthen their military forces in order to be battle ready and thus involved in an arms race. And, battle readiness demands possessing adequate ammunition of various kinds including small caliber, artillery, mortar, large caliber and medium caliber. For example, India and Pakistan share tense relations owing to the territorial disputes between each other, as well as cross-border terrorism. The countries' militaries are involved in frequent cross-border firing despite their ceasefire agreement signed a decade ago. China and South Korea too share hostile relations owing to the Chinese government's intentions to reunite both the countries which are strongly opposed by the latter nation. Thus, South Korea is also making significant efforts in order to defend the Chinese military power when needed, though with the support of its allies such as the US. What makes this report unique and essential to read? “The Global Military Ammunition Market 2013-2023” provides detailed analysis of the current industry size and growth expectations from 2013 to 2023, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas. Key Features and Benefits The report provides detailed analysis of the market for military ammunition during 2013-2023, including the factors that influence why countries are investing or cutting expenditure on military ammunition. It provides detailed expectations of growth rates and projected total expenditure. The global ammunition industry is expected to witness a steady rise in the number of joint ventures and strategic alliances during the forecast period, due to the insufficient indigenous manufacturing capabilities of numerous countries such as the US, India, and Brazil. These countries are dependent on foreign ammunition manufacturers in order to meet demand and develop indigenous ammunition manufacturing capabilities. Some recent notable joint ventures are mentioned below: By the end of 2013, Russia and India are expected to establish a joint venture to manufacture ammunition for the Smerch multiple launch rocket system in India. The Russian firms Rosoboronexport and OAO NPO Splav are expected to form a joint venture with the artillery production department of the Indian defense ministry in order to produce, as well as provide after sales support to, the specified ammunition in India. In April 2012, General Dynamics Ordnance and Tactical Systems and Rheinmetall Defense announced the formation ofa joint venture called Defense Munitions International, LLC in order to develop and market the new and existing kinetic energy and multi-purpose cartridges, which are elements of tank ammunition. The JV intends to market these products in the US as well as international markets. In January 2012, BAE Systems and Olin Winchester announced that they have formed a joint venture called US Munitions, LLC in the US. The joint venture was formed with an aim to undertake the contract awarded by the US DoD to manage, operate and maintain its Lake City Army Ammunition Plant till 2022. The contract is worth US$8.4 billion. Key Market Issues Reducing the weight of ammunition without compromising combat performance is a key challenge for the military ammunition industry. The modernization of soldier systems to protect and empower the soldier has resulted in an exponential increase in the total weight being carried. The combined weight of equipment prevents them from being agile, mobile, and effective war fighters, and the lives of soldiers are being put at risk as heavy life saving equipment is often being left behind. Defense agencies worldwide are focusing on sourcing and integrating the most affordable, lightweight soldier equipment and technology to reduce the burden to personnel. For example, the US Department of Defense Ordnance Technology Consortium awarded a US$2.05 million contract to AAI's Lightweight Small Arms Technologies (LSAT) team, part of Textron Systems to innovate both its caseless and cased telescoped lightweight ammunition and weapon technologies. The contract includes refining the 5.56mm Cased Telescoped ammunition and Light Machine Gun in support of an Army live fire experiment; development, testing and characterization of prototype 5.56mm Caseless ammunition; and extending Cased Telescoped ammunition technologies to a 7.62mm cartridge. The US Army Armament Research, Development and Engineering Center (ARDEC) and the Department of the Navy's Office of Naval Research are jointly participating in this program. The contract is for a one year period and the team of AAI consists of Alliant Techsystems (ATK), Veritay Technology, and St. Marks Powder, a General Dynamics company. The UK MoD also plans to reduce the load on soldiers from 70 kg to no more than 25 kg under the Reducing the Burden on the Dismounted Soldier (RBDS) program. Furthermore, defense ministries are funding research and development projects that focus on reducing the weight of equipment, power, and communication systems that soldiers carry. All capability areas such as lethality - soldier's weapons and ammunition; survivability and mobility - body armor, clothing, helmet, and equipment; C4ISR - radios, wearable computers, and optics, have to be integrated to reduce the weight. Recent years have witnessed an increase in shortage of skilled laborers globally, mainly due to growing orders from the defense ministries for ammunition. There is a scarcity of technically skilled workers in firearms industry and the companies catering to ammunition needs of the militaries are ready to recruit more workers if they get in order to reduce their order backlogs. Skilled laborers were already scarce in the past in the arms and ammunition industry and the big ammunition programs announced by some countries recently have further caused the supply shortage to grow. The procurement of small caliber ammunition worth US$8.5 billion by the US DoD and US$3.2 billion Munition Acquisition Supply Solutions (Mass) program of the UK MoD are examples of such huge ammunition programs being carried out. Manufacturers that are supplying ammunition to the defense ministry started working with educational institutions to create programs to provide technicians for the industry as many of the positions are vacant in these companies due to lack of right workers. Implementation of measures to fill the existing shortage of skilled work force to clear order backlogs and get workers for positions that are newly created due to programs recently announced are expected to take much time and as such during the forecast period, lack of skilled laborers is expected to remain as a key challenge for the military ammunition industry. The US government announced the withdrawal of majority of its troops from Afghanistan in 2011 and it started gradual withdrawal in the same year. By February 2014, 34,000 troops are expected to remain in Afghanistan with the withdrawal of 34,000 troops. The decision is expected to affect the military ammunition market especially the small caliber ammunition market as these are the types of ammunition mostly used for the The Global Military Ammunition Market 2013 - 2023
  2. 2. combat mission in Afghanistan. The US has plans to leave between 6,000-20,000 troops until 2024 for support mission. The UK government also has plans to reduce its troop size in Afghanistan to 5,200 by the end of 2013 and to withdraw remaining soldiers by the end of 2014. Another major contributor for the Afghanistan combat mission, Germany has pulled out all of its troops in 2013. This, as support mission that includes counterterrorism mission and logistical and training support for Afghan forces will not require much of ammunition; the draw down plan is anticipated to negatively impact the market growth. Along with this, army personnel cuts announced by countries such as the US and the UK are also expected to cause a moderate growth of the military ammunition market. The US plans to cut its army personnel numbers from 535,000 to 380,000 by 2019 and the UK MoD plans reducing the number of army personnel from 102,000 to 82,000 by 2017. Key Highlights The US DoD is making significant efforts to reduce the weight carried by the soldiers in the battlefield. One such initiative is the Lightweight Small Arms Technologies (LSAT) development program, through which the US DoD aims to provide lightweight weapons and ammunition to its forces. The infantry soldiers carry a range of equipment including arms and ammunition in the battlefield, which are very heavy to carry for long durations and thus affect the soldiers' fighting capabilities. Therefore, this program intends to equip the soldiers with light-weight machine guns which fire specially designed ammunition, which is also significantly lighter in weight that the conventional small caliber ammunition. The new advanced light machine gun is designed to utilize 5.56mm ammo designed by the AAI Corporation, which is a part of Textron Systems in cooperation with the US DoD. This new ammunition is called telescoped ammunition and does not consist of the conventional brass cartridge, due to which the weight of the ammunition is significantly decreased by approximately 40% compared to the traditional 5.56 ammunition. The new ammunition uses solid propellant that does not need casing and is directly fed into the weapon. These bullets are also shorter and use lesser volumes, which enable the soldiers to carry more ammunition and less weight. Recently, the US DoD also awarded a contract to improve the lightweight 5.56 ammunition and apply the same technology in the 7.62mm ammunition as well. It is expected that these technological advancements will reduce approximately 25 pounds (lbs) from a typical M249 Squad Automatic Weapon gunner. Therefore, these lightweight ammunitions are expected to be adopted by various militaries during the forecast period. Warfare techniques have undergone significant changes during the past decade owing to the rise in guerilla warfare, counter-insurgency and counter-terrorism operations in various countries. Therefore, with an increase in the instances of asymmetric warfare by terrorists, insurgents and rebel forces, the military forces are finding newer ways to neutralize the enemy with newer ammunition. Precision munitions are one such weapon of choice for the militaries fighting in environments such as Iraq and Afghanistan, which need greater accuracy in attacks. The various types of precision munitions include Excalibur, XM395 precision mortar and Guided Multiple Launched Rocket System (GMLRS) ammunition among others. The factors that are expected to bolster the spending on precision munitions are significantly decreasing costs, wide range of options to choose from and the rising familiarity with these weapons among the militaries of numerous countries. The ammunition manufacturers such as Alliant Techsystems (ATK) have developed course correcting fuses, which can convert conventional rounds into guided bombs. These are relatively cheaper than the advanced precision munitions such as Raytheon's Excalibur Block 1b. Furthermore, the unit costs of these munitions have also decreased significantly during the last three to four years. For example, Raytheon's Excalibur 1a projectile unit had cost around US$87,000 in 2010, whereas the cost of the Excalibur 1b projectile in 2012 was US$45,000. This steep reduction in prices can be attributed to the economies of scale due to the rapidly increasing orders for these weapons. table Of Content 1 Introduction 1.1 What Is This Report About? 1.2 Definitions 1.3 Summary Methodology 1.4 About Strategic Defence Intelligence 2 Executive Summary 3 Global Military Ammunition Market Size And Drivers 3.1 Military Ammunition Market Size And Forecast 2013-2023 3.1.1 Global Military Ammunition Market To Show Positive Growth During The Forecast Period 3.2 Global Military Ammunition Market - Regional Analysis 3.2.1 North America To Register Highest Spending In The Global Military Ammunition Market 3.2.2 Spending On Small Caliber Ammunition Significantly Driving North American Military Ammunition Market During The Forecast Period 3.2.3 Military Ammunition Market In The Asia-pacific Region Is Expected To Witness Consistent Levels Of Growth Over The Forecast Period 3.2.4 Europe Is Expected To Register A Moderate Growth In Military Ammunition Market 3.2.5 Military Ammunition Market In The Middle East To Increase During The Forecast Period 3.2.6 Brazil Expected To Be The Highest Spender In The Military Ammunition Sector In The Latin American Region 3.2.7 African Markets Expected To Witness A Gradual Increase In Military Ammunition Spending Over The Forecast Period 3.3 Military Ammunition Sub-sector Market Size Composition 3.3.1 Artillery Ammunition Expected To Constitute The Largest Segment 3.3.2 Small Caliber Ammunition Expected To Constitute The Second Largest Segment 3.3.3 Mortar Ammunition To Be The Third Largest Segment In The Global Ammunition Market 3.3.4 Large Caliber Ammunition To Account For A Share Of 6.7% Of The Total Ammunition Market 3.3.5 Market For Medium Caliber Ammunition To Grow At A Cagr Of 1.99% Over The Forecast Period 3.4 Demand Drivers And Growth Stimulators 3.4.1 Force Modernization Initiatives By Various Countries To Drive The Global Ammunition Market 3.4.2 Regional Conflicts And Instability To Drive Ammunition Procurement 3.5 Defense Budget Spending Review 3.5.1 European Capital Expenditure Expected To Increase During The Forecast Period 3.5.2 Asian Defense Budgets Expected To Increase At A Robust Pace The Global Military Ammunition Market 2013 - 2023
  3. 3. 3.5.3 North American Defense Expenditure Projected To Increase Marginally During The Forecast Period 3.5.4 Modernization Programs Likely To Drive Defense Expenditure In South American Countries 3.5.5 Military Budgets Of African Countries Expected To Increase During The Forecast Period 3.5.6 Defense Budgets Of Middle Eastern Countries Likely To Increase During The Forecast Period 3.6 Defense Modernization Review 3.6.1 Debt Crisis In Europe Leading To Postponement Of Modernization Plans 3.6.2 Arms Race In Asia Reflected In Modernization Plans 3.6.3 North American Modernization Plans Marginally Affected By Economic Recession 3.6.4 Modernization Programs In South America Driven By Replacement Of Obsolete Armaments 3.6.5 African Countries Mainly Spending On Infantry Weapons, And Surveillance And Monitoring Equipment, To Slow Growing Crime Rate 3.6.6 Middle Eastern Countries Pursuing Modernization Of Air Force And Air Defense Systems 4 Industry Trends, Recent Developments And Challenges 4.1 Technological Developments 4.1.1 Precision Extended Range Munition To Provide Enhanced Precision 4.1.2 Smart Ammunition To Result In Increased Lethality 4.1.3 Lead Free Small Caliber Ammunition In A Step To Reduce Environmental Contamination 4.2 Market Trends 4.2.1 The Us Army Developing Lightweight Ammunition To Reduce Soldier Load 4.2.2 Precision Munitions Finding Increasing Usage Among The Militaries 4.3 Industry Consolidation 4.3.1 Joint Programs Expected To Increase Over The Forecast Period 4.4 Key Challenges 4.4.1 Reducing The Burden Of Soldiers Poses A Key Challenge For Military Ammunition Market 4.4.2 Lack Of Skilled Labor In Military Ammunition Industry Poses A Challenge For Its Growth 4.4.3 Withdrawal Of Us Troops From Afghanistan To Negatively Impact The Military Ammunition Market 5 Swot Analysis Of The Military Ammunition Market 5.1 Strengths 5.1.1 Continuously Expanding Need For Ammunition In The Asia Pacific, Middle East And Africa 5.1.2 Technological Advancements Driving The Market The Market For Military Ammunition 5.2 Weaknesses 5.2.1 Lack Of Advanced Manufacturing Capability And Skilled Workforce To Hinder Growth Of The Sector 5.2.2 Troop Drawdown From Afghanistan To Decrease Demand For Military Ammunition 5.3 Opportunities 5.3.1 Ammunition Shortage Among Major Militaries Such As The Us And India 5.3.2 Emerging Economies In The Asia Pacific Region To Provide Ample Scope For Ammunition Sales 5.4 Threats 5.4.1 Us And European Economic Crisis 5.4.2 New Arms Trade Treaty To Negatively Impact The Military Ammunition Market 5.4.3 Emerging Markets Developing Indigenous Ammunition Manufacturing Capabilities 6 Country Analysis - Military Ammunition Market 6.1 United States Market Size And Forecast 2013-2023 6.1.1 Small Caliber Ammunition Expected To Account For The Largest Share Of Us Military Ammunition Market 6.1.2 Spending On Artillery Ammunition Expected To Account For The Second Largest Share 6.1.3 Mortar Ammunition Segment Is Expected To Constitute The Third Largest Market Share In The Us 6.2 Russia Market Size And Forecast 2013-2023 6.2.1 Small Caliber Ammunition Segment Expected To Lead The Russian Ammunition Market 6.2.2 Expenditure On Artillery Ammunition To Be Robust During The Forecast Period 6.3 The United Kingdom Market Size And Forecast 2013-2023 6.3.1 Small Caliber Ammunition Market To Remain Consistent During The Forecast Period 6.3.2 Artillery Ammunition Accounts For The Second Largest Share Of The Uk Spending On Ammunition 6.3.3 Large Caliber Ammunition Market In The Uk To Increase During The Forecast Period 6.4 France Market Size And Forecast 2013-2023 6.4.1 Small Caliber Ammunition Segment Expected To Account For The Largest Share During The Forecast Period 6.4.2 Artillery Ammunition Segment Expected To Account For The Second Largest Segment Of Expenditure 6.4.3 Mortar Ammunition To Constitute 16.8% Of French Military Ammunition Market 6.5 China Market Size And Forecast 2013-2023 6.5.1 Artillery Ammunition Market In China To Account For The Highest Segment Of Expenditure 6.5.2 Chinese Expenditure On Small Caliber Ammunition Expected To Grow At A Cagr Of 0.98% Over The Forecast Period 6.6 Australian Market Size And Forecast 2013-2023 6.6.1 Small Caliber Ammunition Expected To Account For The Largest Segment Of Expenditure 6.6.2 Market For Artillery Ammunition To Grow At A Cagr Of 1.84% Over The Forecast Period 6.6.3 Mortar Ammunition Expected To Account For The Third Largest Area Of Expenditure The Global Military Ammunition Market 2013 - 2023
  4. 4. 6.7 India Market Size And Forecast 2013-2023 6.7.1 Artillery Ammunition To Account For The Largest Segment Of Expenditure 6.7.2 Market For Small Caliber Ammunition To Account For The Second Largest Segment 6.7.3 Medium Caliber Ammunition To Account For The Third Largest Share Of Indian Expenditure 6.8 Israel Market Size And Forecast 2013-2023 6.8.1 Small Caliber Ammunition Segment Expected To Lead The Israeli Military Ammunition Market 6.8.2 Artillery Ammunition Market In Israel To Increase During The Forecast Period 6.9 Saudi Arabia Market Size And Forecast 2013-2023 6.9.1 Saudi Arabia's Expenditure On Small Caliber Ammunition Segment To Increase At A Cagr Of 0.14% 6.9.2 Artillery Ammunition Segment Is Expected To Exhibit A Cagr Of 2.66% During The Forecast Period 6.10 Brazil Market Size And Forecast 2013-2023 6.10.1 Small Caliber Ammunition To Account For The Highest Proportion Of Expenditure By Brazil On Military Ammunition 6.10.2 Artillery Ammunition Accounts For Second Largest Share Of Brazilian Spending On Military Ammunition 6.11 Venezuela Market Size And Forecast 2013-2023 6.11.1 Venezuelan Expenditure On Artillery Ammunition To Account For The Largest Share 6.12 Algeria Market Size And Forecast 2013-2023 6.12.1 Artillery Ammunition Segment To Account For A Major Portion Of Expenditure By Algeria 7 Major Military Ammunition Programs 7.1 Small Caliber Ammunition 7.1.1 Us - Procurement Of Small Caliber Rifle Ammunition 7.1.2 Russia - Procurement Of Ammunition For Ak-12 Rifles 7.1.3 India - Multi-caliber Assault Rifle Ammunition 7.2 Medium Caliber Ammunition 7.2.1 Uk - Munition Acquisition Supply Solutions (mass) Program 7.2.2 France - Procurement Of 40mm Cannon And Ammunition 7.2.3 Australia - Procurement Of 40mm Low-velocity Air-bursting Ammunition 7.3 Large Caliber Ammunition 7.3.1 India - Ammunition For Anti-material Rifles 7.3.2 Us - Procurement Of M1040 105mm Canister Cartridges 7.4 Mortar Ammunition 7.4.1 Russia - Ammunition For 2s31 Vena Self-propelled Mortar 7.4.2 France - 120mm Mortar Ammunition Under Metric Precision Munition (mpm) Program 7.4.3 India - 120mm Mortar Ammunition Under Metric Precision Munition (mpm) Program 7.5 Artillery Ammunition 7.5.1 India - 155mm Ammunition For Howitzers 7.5.2 Israel - Ammunition For M109a2/a3 Doher Self-propelled Howitzers (sph) 7.5.3 Russia - Ammunition For Msta-s 2s19 152mm Self-propelled Howitzers 7.5.4 Us - Procurement Of M107 Projectile Metal Parts 8 Competitive Landscape And Strategic Insights 8.1 Competitive Landscape Overview 8.1.1 Alliant Techsystems Inc.: Overview 8.1.2 Alliant Techsystems Inc.: Products And Services 8.1.3 Alliant Techsystems Inc.: Recent Announcements And Strategic Initiatives 8.1.4 Alliant Techsystems Inc.: Alliances 8.1.5 Alliant Techsystems Inc.: Recent Contract Wins 8.1.6 Alliant Techsystems Inc.: Financial Analysis 8.1.7 General Dynamics-ordnance And Tactical Systems: Overview 8.1.8 General Dynamics-ordnance And Tactical Systems: Products And Services 8.1.9 General Dynamics-ordnance And Tactical Systems: Recent Announcements And Strategic Initiatives 8.1.10 General Dynamics-ordnance And Tactical Systems: Alliances 8.1.11 General Dynamics-ordnance And Tactical Systems: Recent Contract Wins 8.1.12 Bae Systems: Overview 8.1.13 Bae Systems: Products And Services 8.1.14 Bae Systems: Recent Announcements And Strategic Initiatives 8.1.15 Bae Systems: Alliances 8.1.16 Bae Systems: Recent Contract Wins 8.1.17 Bae Systems: Financial Analysis 8.1.18 Rheinmetall Defence: Overview 8.1.19 Rheinmetall Defense: Products And Services 8.1.20 Rheinmetall Defence: Recent Announcements And Strategic Initiatives 8.1.21 Rheinmetall Defence: Alliances 8.1.22 Rheinmetall Defence: Recent Contract Wins 8.1.23 Rheinmetall Defence: Financial Analysis 8.1.24 Nexter Munitions: Overview The Global Military Ammunition Market 2013 - 2023
  5. 5. 8.1.25 Nexter Munitions.: Products And Services 8.1.26 Nexter Munitions: Alliances 8.1.27 Nexter Munitions: Recent Contract Wins 8.1.28 L-3 Communications Corp.: Overview 8.1.29 L-3 Communications Corp.: Products And Services 8.1.30 L-3 Communications Corp: Recent Announcements And Strategic Initiatives 8.1.31 L-3 Communications Corp: Recent Contract Wins 8.1.32 Nammo As: Overview 8.1.33 Nammo As: Products And Services 8.1.34 Nammo As: Recent Announcements And Strategic Initiatives: 8.1.35 Nammo As: Alliances 8.1.36 Nammo As: Recent Contract Wins 8.1.37 Olin Corporation: Overview 8.1.38 Olin Corporation: Products And Services 8.1.39 Olin Corporation: Recent Announcements And Strategic Initiatives 8.1.40 Olin Corporation: Alliances 8.1.41 Olin Corporation: Recent Contract Wins 8.1.42 Olin Corporation: Financial Analysis 9 Appendix 9.1 Methodology 9.2 About Sdi 9.3 Disclaimer ResearchMoz(http://www.researchmoz.us/) is the one stop online destination to find and buy market research reports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with our huge collection of market research reports. We provide our services to all sizes of organizations and across all industry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well as publishers and will assist you in making an informed decision by giving you unbiased and deep insights on which reports will satisfy your needs at the best price. Contact: M/s Sheela, 90 State Street, Suite 700, Albany NY - 12207 United States Tel: +1-518-618-1030 USA - Canada Toll Free 866-997-4948 Email: sales@researchmoz.us Website: http://www.researchmoz.us/ The Global Military Ammunition Market 2013 - 2023

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