Military Propellants And Explosives Global Market Report 2025

The military propellants and explosives market size has grown strongly in recent years. It will grow from $3.32 billion in 2024 to $3.49 billion in 2025 at a compound annual growth rate (CAGR) of 5.1%. The growth during the historic period can be attributed to escalating global military spending, an increase in cross-border conflicts, the expansion of defense modernization initiatives, a growing emphasis on tactical weapon systems, and the rising production of conventional arms.

The military propellants and explosives market size is expected to see steady growth in the next few years. It will grow to $4.22 billion in 2029 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to rising investments in precision-guided munitions, increased demand for lightweight explosives, the expansion of border security programs, a stronger focus on domestic defense manufacturing, and the growing adoption of smart weapon systems. Key trends during this period include technological advancements in energetic materials, rapid innovations in propellant chemistry, progress in insensitive munitions, ongoing research and development of eco-friendly explosives, and continuous improvements in propulsion technologies.

Increasing geopolitical tensions and conflicts are expected to drive growth in the military propellants and explosives market. These tensions and conflicts involve disputes and confrontations between countries or regions, often motivated by power struggles, territorial claims, or competition for resources. Such disputes frequently arise from nations attempting to control strategically significant or resource-rich areas that are linked to their national identity, security, or economic interests. As a result, there is heightened demand for advanced military propellants and explosives to strengthen defense capabilities and protect national security. For example, in December 2024, the Armed Conflict Location & Event Data Project (ACLED), a U.S.-based crisis mapping organization, projected a 15% increase in conflict event rates at the start of 2025, driven by more bombings and battles, potentially leading to an estimated 20,000 fatalities reported monthly. Thus, escalating geopolitical tensions and conflicts are fueling the military propellants and explosives market.

Companies in the military propellants and explosives sector are investing in technological innovations focused on developing new propellant formulations that avoid traditional materials. These formulations, which consist of carefully engineered fuel and oxidizer chemicals, are designed to generate controlled thrust in ammunition and rocket systems, ensuring performance, stability, and safety. In April 2025, BAE Systems, a UK-based defense and aerospace firm, introduced new explosives and propellants aimed at enhancing the UK’s munitions supply chain. These innovations reduce reliance on legacy materials while improving the performance, resilience, and sustainability of munitions. The developments also support emerging weapons technologies and improve manufacturing capabilities at BAE’s Glascoed and Washington facilities.

In August 2023, Rheinmetall AG, a German defense technology company specializing in weapon systems, ammunition, and military explosives, acquired Expal Systems for $1.3 billion. This acquisition was intended to increase Rheinmetall’s munitions production capacity, boost its technological expertise in military-grade explosives, and strengthen its position in the European defense market amid growing demand driven by geopolitical tensions. Expal Systems, based in Spain, provides military explosives, propellants, munitions, and demilitarization services and operates its own production facilities.

Major players in the military propellants and explosives market are BAE Systems plc, Thales Group, Rheinmetall Defence, Poongsan Corporation, NOF Corporation, Solar Industries India Limited, Chemring Group PLC, EURENCO (European Energetics Corporation), Premier Explosives Limited, Hodgdon Powder Company Inc., Nitro-Chem S.A., Instalaza S.A., Explosia a.s., Australian Munitions, Digital Solid State Propulsion Inc., Aryum Makina Kimya ve Ticaret Limited Şirketi, Narendra Explosives Limited, Defense Industries Organization (DIO), Bharat Explosives Limited, Engine Development and Production - EDePro.

North America was the largest region in the military propellants and explosives market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in military propellants and explosives report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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

Military propellants and explosives are chemical compounds utilized to propel projectiles or produce explosive effects in weapons and defense systems. Propellants create thrust through the rapid release of gases, whereas explosives generate a sudden release of energy intended to cause damage or disruption. These substances are designed for high performance, stability, and precise detonation control in military contexts.

The primary categories of military propellants and explosives are military propellants and military explosives. Military propellants are specialized chemicals used in ammunition, rockets, missiles, and other defense systems to produce the required thrust or explosive force for propulsion and detonation. These propellants are formulated from compositions such as single-base, double-base, and triple-base types and come in various forms including powder, gel, and others. Their applications span ammunition, missiles, rockets, and other defense-related uses. The main end-users comprise the army, navy, air force, and other defense sectors.

The military propellants and explosives market research report is one of a series of new reports that provides military propellants and explosives market statistics, including the military propellants and explosives industry global market size, regional shares, competitors with the military propellants and explosives market share, detailed military propellants and explosives market segments, market trends, and opportunities, and any further data you may need to thrive in the military propellants and explosives industry. This military propellants and explosives 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.

The military propellants and explosives market consists of sales of solid and liquid propellants, high explosives, and boosters. 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 and 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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