Artillery Ammunition Market Report 2025

The artillery ammunition market size has grown strongly in recent years. It will grow from $5.29 billion in 2024 to $5.6 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth during the historical period can be attributed to escalating cross-border tensions, growing demand for military modernization, an increase in asymmetric warfare, rising global defense budgets, and a heightened need for long-range precision strike capabilities.

The artillery ammunition market size is expected to see strong growth in the next few years. It will grow to $6.94 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth during the forecast period can be linked to increasing demand for precision-guided munitions, rising military expenditures, escalating geopolitical conflicts, the expansion of joint military exercises, and a growing emphasis on domestic ammunition production. Key trends expected include innovations in smart artillery shells, advancements in propulsion technologies for greater range, the creation of modular ammunition systems, developments in guided artillery munitions, and enhanced automation in artillery fire control systems.

The growth of the artillery ammunition market is expected to be driven by rising defense expenditure. Defense expenditure includes government spending on military personnel, equipment, operations, and infrastructure aimed at maintaining national security. This spending is increasing as nations invest heavily in modernizing their armed forces with advanced technologies such as AI, autonomous weapons, and cyber defense systems to maintain a strategic edge. Increased defense budgets provide essential funding for the research, development, production, and procurement of advanced artillery shells and fuze systems, improving firepower, precision, and overall military effectiveness. For example, in May 2025, the House of Commons in the United Kingdom reported that defense spending is forecasted to reach around $72.2 billion (£56.9 billion) in 2024/25, rising to approximately $75.9 billion (£59.8 billion) in 2025/26, with an average annual growth rate of 2.4% in real terms between 2023/24 and 2025/26. Therefore, the increase in defense expenditure is fueling the artillery ammunition market’s expansion.

Companies in the artillery ammunition market are developing advanced technologies such as electronic programmable artillery fuzes to improve precision, flexibility, and effectiveness in firepower. Electronic programmable artillery fuzes are sophisticated fuse systems that can be electronically configured before firing to control detonation timing and mode, enhancing the accuracy and impact of artillery rounds. For instance, in June 2024, KMW+Nexter Defense Systems, a Netherlands-based defense firm, introduced a new programmable artillery fuze system that includes two electronic fuzes and a lightweight, handheld inductive fuze setter. This technology enables artillery crews to quickly and securely program fuzes immediately before firing, supporting multiple detonation modes like airburst, point detonation, and delay to maximize operational flexibility and safety. These fuzes are compatible with various artillery calibers and comply with NATO standards, boosting both the effectiveness and adaptability of modern artillery forces.

In August 2023, Rheinmetall AG, a Germany-based defense and automotive technology company, acquired Expal Systems for $1.38 billion. This acquisition aims to reinforce Rheinmetall’s core operations in weapons, ammunition, and propellants by expanding production capacity and diversifying its product range to meet rising global demand for military equipment. Expal Systems, headquartered in Spain, specializes in manufacturing artillery ammunition, mortars, and medium-caliber armaments.

Major players in the artillery ammunition market are RTX Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems Public Limited Company, Thales S.A., Leonardo Società per Azioni, Textron Inc., Singapore Technologies Engineering Ltd, Rheinmetall AG, Elbit Systems Ltd., Hanwha Aerospace Co. Ltd., Saab Aktiebolag, Diehl Defence GmbH & Co. KG, Poongsan Corporation, Nammo AS, Denel SOC Ltd, Arsenal Joint Stock Company, Nexter Systems S.A., MESKO Spólka Akcyjna, and Hirtenberger Defence Systems GmbH & Co KG.

North America was the largest region in the artillery ammunition market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artillery ammunition report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artillery ammunition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Artillery ammunition consists of large-caliber munitions designed for launch from heavy military weapons like howitzers, cannons, and field guns, mainly utilized in land warfare. It is essential for providing sustained, long-range firepower that allows armed forces to suppress, neutralize, or eliminate enemy targets over extensive battlefield zones.

The primary categories of artillery ammunition include high explosive rounds, armor-piercing rounds, training rounds, illumination rounds, and smoke rounds. High explosive ammunition contains a potent chemical charge that detonates upon impact or after a predetermined delay, producing a powerful explosion and dispersing fragments to inflict damage over a broad area. These ammunition types comprise components such as fuses, primers, propellants, and projectiles, and they are employed in applications spanning land, naval, air, and special forces operations. The end users include military forces, law enforcement agencies, and others.

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

The artillery ammunition market consists of sales of training shells, cluster ammunition, incendiary shells, gas shells, and incendiary ammunition. 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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