Mortar Ammunition Market Report 2026

The mortar ammunition market size has grown strongly in recent years. It will grow from $2.65 billion in 2025 to $2.79 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to increasing use of mortar systems for infantry fire support in diverse combat environments, rising demand for specialized rounds such as thermobaric and bunker-busting munitions, advancements in explosive formulations improving lethality and accuracy, expansion of military procurement programs to standardize mortar calibers and ammunition, growth in urban warfare operations requiring high-angle indirect fire capabilities.

The mortar ammunition market size is expected to see steady growth in the next few years. It will grow to $3.38 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to growing adoption of extended-range and precision-guided smart mortars for enhanced targeting, increasing demand for airburst rounds to improve effectiveness against dispersed threats, rising investment in modular and multi-purpose mortar ammunition systems, expansion of non-lethal mortar options for peacekeeping and crowd-control missions, accelerating innovation in lightweight materials to improve mobility and logistics efficiency. Major trends in the forecast period include increasing adoption of precision-guided mortar ammunition, rising demand for extended-range and bunker-busting mortar rounds, growing emphasis on mortar effectiveness in urban warfare and counter-insurgency operations, expansion of specialized training and simulation mortar rounds, standardization and interoperability of mortar calibers and ammunition across allied forces.

The rising instances of geopolitical tensions are contributing to the growth of the mortar ammunition market, driven by heightened military preparedness and increased demand for border security. These tensions refer to strained political relations between nations or regions, often resulting in conflict or escalated military activity. As global rivalries intensify, more border disputes and military build-ups are occurring. Mortar ammunition plays a crucial role in supporting military readiness during such times by providing flexible and rapid firepower in contested areas. Its ability to deliver indirect fire enhances the operational efficiency of ground forces through swift responses and improved territorial control. For example, in December 2024, the Armed Conflict Location & Event Data Project (ACLED), a US-based conflict data research organization, reported over 165,273 political violence incidents worldwide between July 2023 and June 2024, representing a 15% increase from the previous year. This surge in geopolitical unrest is driving demand in the mortar ammunition market.

Key companies in the market are forming strategic partnerships aimed at boosting production and innovation. These alliances allow firms to pool resources, share technological expertise, and strengthen logistics, resulting in enhanced product offerings and broader market reach. For instance, in February 2023, Ukroboronprom, a Ukrainian defense enterprise, partnered with an unnamed NATO member to jointly manufacture 120 mm mortar ammunition. Production takes place at several locations, including sites in a European NATO country, to fulfill a contract for Ukraine's Ministry of Defence and supply its Armed Forces, which make extensive use of this type of ammunition in ongoing military engagements.

In August 2023, Rheinmetall AG, a defense and automotive technology company based in Germany, acquired Expal Systems S.A.U. for $1.37 billion (€1.2 billion). This acquisition is intended to increase Rheinmetall’s production capacity and strengthen its capabilities in precision and programmable ammunition. By integrating Expal’s expertise in advanced manufacturing and artillery systems, Rheinmetall gains a technological advantage and broadens its footprint across Europe and NATO-affiliated markets. Expal Systems, based in Spain, specializes in mortar platforms and ammunition.

Major companies operating in the mortar ammunition market are China North Industries Group Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Leonardo S.p.A., Singapore Technologies Engineering Ltd., Rheinmetall AG, Elbit Systems Ltd, Hanwha Aerospace, Diehl Defence, Saab AB, Day & Zimmermann, Poongsan Corporation, Nammo AS, Yugoimport SDPR, KNDS Group, ARSENAL JSCo, Hirtenberger Defence Systems GmbH & Co KG, STV Group.

North America was the largest region in the mortar ammunition market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the mortar 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 on metals, explosives precursors, and defense-grade electronic components are increasing production costs and complicating cross-border supply chains for mortar shells, fuzes, propellant charges, and guided rounds, leading to higher prices and longer lead times across key calibers such as 60 mm, 81/82 mm, and 120 mm. Segments most affected include precision-guided and special-purpose rounds, where imported sensors and navigation modules are critical, as well as end users in import-dependent regions in Asia-Pacific, the Middle East, Africa, and Latin America that rely on overseas suppliers. Export-oriented manufacturing hubs in Europe, North America, and parts of Asia face margin pressure but are responding by localizing inputs, restructuring contracts, and forming regional joint ventures. In some cases, tariffs are also catalyzing positive impacts by encouraging domestic ammunition manufacturing, technology transfer, and capacity expansion in emerging defense markets, which can diversify the supplier base over the long term.

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

Mortar ammunition includes explosive projectiles fired from mortar systems - compact, mobile artillery designed for high-trajectory attacks. It is primarily used to neutralize enemy forces, demolish defensive structures, and provide essential fire support during infantry missions in diverse terrains, including urban areas. Its lightweight structure and indirect fire capability make it highly effective for striking targets not in direct line of sight.

The main categories of mortar ammunition are high-explosive (HE), illumination, smoke, training, and guided types. HE mortars, known for their strong fragmentation impact, are the most frequently used for indirect infantry fire support. Mortar components include shells, fuzes, propellant charges, and cartridges, and come in calibers such as 60 mm, 81 mm, and 120 mm. These are employed in various scenarios like infantry and artillery support, counter-insurgency, and urban warfare, and are utilized by the military, defense contractors, government entities, and research organizations.

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

The mortar ammunition market consists of sales of thermobaric mortars, bunker-busting rounds, extended-range smart mortars, non-lethal mortar rounds, and airburst mortars. 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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