Small-caliber Ammunition Market | Global Analysis Report 2027
                     Increasing Defense Expenditure: 
Top Driving Engine of Small-
caliber Ammunition Market
The incidence of issues around the world related to terrorism, wars, and armed conflict have
created a continuing demand for ammunition, globally.  This has resulted in the recent 
global trend of increasing defense budgets by countries around the world, with the 
intention of boosting military strength, modernizing the armed forces, and procurement of 
modern equipment.
According to the Stockholm International Peace Research Institute (SIPRI), there has been 
a 2.6% rise in military expenditure around the world, for security and development 
interests. This is likely to have a direct impact on the demand for ammunition, thus driving 
the growth of the  small-caliber     ammunition     market .
The global market for small-caliber ammunition reached ~US$ 5 billion in 2018, and its 
applications in the military industry accounted for ~two-third revenue share of the market. 
This trend is unlikely to change during the forecast period, even as the rate of growth for 
this period over the forecast duration is expected to be 4.5%.
The modernization of defense programs and upgrading & replacement of outdated 
equipment to incorporate technologically-advanced systems is important on the end use 
level, which is a major driver behind the increased demand for ammunition in the global 
market. Regional instability and conflicts in pockets around the world, especially in Asia 
Pacific, are likely to propel the growth of the small-caliber ammunition industry in the 
coming years.
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Guns for Sports and Hunting Activities Gaining Ground
The increasing use of guns in the commercial sector for both, hunting and sports has 
continued to fuel their demand steadily, globally. The use of firearms in the commercial 
sector also includes shooting sports using a variety of rifles and handguns. With a variety of 
shooting sport activities witnessing increasing popularity, the use of small-caliber guns has 
been gaining traction, which, in turn, has also encouraged the growth of the global small-
caliber ammunition market with major players manufacturing specialized products for 
sports.
The rise in the use of small-caliber ammunition and firearms in hunting activities is mainly 
attributed to their accuracy, and manufacturers in the small-caliber ammunition landscape 
are launching innovative product to target this sector. For instance: Hornady Manufacturing 
Company, a prominent player in the small-caliber ammunition market, in 2018, announced 
the launch of its Precision Hunter line of ammunition, marketed to have the highest levels of
accuracy and performance uniformity, for diverse hunting needs.
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Public Safety Concerns to Positively Influence Small-caliber Ammunition Market Growth
According to the United Nations Office on Drugs and Crime, 464,000 deaths were caused by 
homicide in the year 2017, worldwide. Public safety concerns due to the rise in crime rates 
and homicides around the world is a very significant underlying trend that is influencing the 
growth of the small-caliber ammunitions market. 
Small-caliber firearms, due to their convenience, continue to be the weapons of choice, 
including handguns and rifles for law enforcement agencies around the world. This 
widespread adoption of small-caliber firearms, has, in turn, had a positive impact on the 
growth of the small-caliber ammunition market.
Law enforcement held the second-highest share of the small-caliber ammunition market as 
of 2018, and this trend is likely to continue for the duration of the forecast period.
Full Metal Jacket Ammunition to Remain Popular Choice
Among the common options for small-caliber ammunition, full metal jacket ammunition 
continues to remain widespread, as these are manufactured for most types of rifle and 
handgun cartridges. Their reliability in the feeding process, effectiveness, and their main 
attribute of less fouling in the barrel, improving accuracy and smoothness, makes them a 
popular choice in small-caliber ammunition.
As of 2018, full metal jacket ammunition held more than half the global market share, and 
this trend is likely to continue through the forecast period from 2019 to 2027, with tracer 
and incendiary ammunition flowing closely.
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