Weapons and Ammunition Market Report 2026

The weapons and ammunition market size has grown strongly in recent years. It will grow from $67.2 billion in 2025 to $73.33 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to increasing global defense budgets, technological advancements in precision-guided and smart munitions, rising demand for modernization of military arsenals, adoption of advanced artillery and missile systems, consolidation and strategic partnerships among weapons and ammunition manufacturers.

The weapons and ammunition market size is expected to see strong growth in the next few years. It will grow to $102.74 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to growing emphasis on next-generation guided and autonomous weapons, expansion of defense modernization programs in emerging economies, rising demand for cost-effective and modular ammunition solutions, integration of digital technologies and AI in weapons systems, focus on lifecycle support, maintenance, and upgrade services for existing arsenals. Major trends in the forecast period include enhanced precision-guided munitions development, growth in non-lethal weapon technologies, increasing demand for modular and multi-platform weapons, expansion of naval and aerial weapon systems, strengthening of defense supply chains and localization.

The growing rate of terrorism and criminal activities is significantly contributing to the expansion of the weapons and ammunition market. Acts of terrorism and crime are unlawful and often aim to instill fear or achieve political, ideological, or financial objectives. One of the root causes behind the rise in these threats is socioeconomic inequality, which fuels discontent, marginalization, and openness to extremist beliefs. As these incidents escalate worldwide, governments and security agencies are heavily investing in upgrading their weapons and surveillance capabilities to effectively counter such threats. For instance, in June 2024, according to Pool Reinsurance Company Limited, terrorism-related arrests in the UK increased by 23% in the year ending March 2024, with 212 arrests reported across Great Britain. As a result, the intensifying levels of terrorism and crime are bolstering the demand for weapons and ammunition.

Leading companies in the weapons and ammunition market are prioritizing the development of next-generation technologies like smart weapon systems to enhance operational effectiveness on the battlefield. These systems incorporate cutting-edge features that improve targeting precision, enable autonomous actions, and allow integration of real-time battlefield data. For example, in July 2024, Raytheon UK, a defense firm based in the UK, conducted a landmark trial of the High Energy Laser Weapon System (HELWS) on a British Army combat vehicle. This marked the UK's inaugural test of such a system under the Ministry of Defence's Land Laser Directed Energy Weapon (LDEW) demonstrator program. The HELWS successfully engaged and destroyed small moving drone targets using advanced sensors and tracking technology. This development represents a major leap in adopting directed energy weapons for drone defense and improving operational capabilities.

In January 2023, NIOA, an Australia-based defense contractor, acquired Barrett Firearms for an undisclosed amount. Through this acquisition, NIOA aims to expand its global footprint into the U.S. market by combining its expertise and family business values with Barrett’s well-established legacy of quality, innovation, and excellence in rifle manufacturing. Barrett Firearms is a U.S.-based company that manufactures weapons and ammunition.

Major companies operating in the weapons and ammunition market are RTX Corporation, The Boeing Company, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Mitsubishi Electric Corporation, Honeywell International Inc., Rostec Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Leidos Holdings Inc., Huntington Ingalls Industries Inc., Rheinmetall AG, Elbit Systems Ltd., Naval Group, MBDA, NORINCO, FN Herstal, Heckler & Koch GmbH, Colt’s Manufacturing Company, Kalashnikov Concern, Israel Weapon Industries (IWI), Česká zbrojovka (CZ)

North America was the largest region in the weapons and ammunition market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the weapons and ammunition market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the weapons and ammunition market by increasing production and procurement costs, especially for components and raw materials sourced internationally. This has affected segments such as firearms and military weapons, with regions like North America, Europe, and Asia-Pacific feeling the most pressure due to their significant manufacturing and export activities. While tariffs have created challenges by disrupting supply chains and increasing lead times, they have also encouraged local manufacturing initiatives and diversification of suppliers, potentially strengthening domestic industries and enhancing strategic autonomy.

The weapons and ammunition market research report is one of a series of new reports that provides weapons and ammunition market statistics, including the weapons and ammunition industry global market size, regional shares, competitors with the weapons and ammunition market share, detailed weapons and ammunition market segments, market trends, opportunities, and any further data you may need to thrive in the weapons and ammunition industry. This weapons and ammunition market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Weapons and ammunition are tools and materials employed for offensive, defensive, or protective purposes across military, law enforcement, or personal security settings. Weapons are instruments intended to cause harm or destruction, encompassing firearms, explosives, knives, and other combat implements. Ammunition includes projectiles and associated components such as bullets, shells, and cartridges, which are essential for the operation of these weapons. Together, they constitute the foundational elements of armed defense and combat strategies. Their role is crucial in safeguarding national interests, supporting military operations, and enabling strategic deterrence.

Weapons and ammunition encompass various categories, including firearms, ammunition, explosives, military weapons, and non-lethal weapons. Firearms are mobile guns that discharge bullets using explosive energy and are utilized for military, law enforcement, personal defense, and sport. These products are available for multiple platforms, including land, air, and sea-based systems, and are distributed through diverse channels such as online platforms, specialty outlets, and other stores. Applications span across defense, commercial use, law enforcement, sports shooting, and hunting, with end users ranging from government agencies and private security providers to sports enthusiasts and civilians.

The countries covered in the weapons and ammunition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The weapons and ammunition market consists of sales of artillery systems, missiles and rockets, mortars and grenade launchers, precision-guided munitions, torpedoes and naval weaponry, anti-tank and anti-aircraft weapons, bombs and warheads. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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