Weapons and Ammunition Market Report 2025

The weapons and ammunition market size has grown strongly in recent years. It will grow from $61.51 billion in 2024 to $67.2 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. This historical growth is attributed to the modernization of military forces, escalating geopolitical disputes, an increase in cross-border hostilities, rising defense expenditures, and heightened demand for sophisticated weaponry.

The weapons and ammunition market size is expected to see strong growth in the next few years. It will grow to $94.5 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The projected growth will be driven by the broader adoption of smart weaponry, a surge in demand for unmanned systems, increased funding in defense R&D, a growing need for securing national borders, and an emphasis on precision-based military strikes. Key emerging trends during the forecast period include innovations in guided munitions, advancements in targeting and fire-control technologies, the use of lightweight composite materials, and the integration of artificial intelligence and augmented reality in weapon systems.

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 November 2022, Rheinmetall AG, a German defense technology company, completed the acquisition of Expal Systems for €1.2 billion ($1.2 billion). This strategic acquisition was aimed at broadening Rheinmetall’s ammunition offerings, boosting its competitiveness in the international defense market, and solidifying its market presence in Spain. Expal Systems, headquartered in Spain, specializes in manufacturing ammunition and explosives.

Major players 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., Rolls-Royce Holdings, Leonardo S.p.A., Leidos Holdings Inc., Amentum Holdings Inc., Huntington Ingalls Industries, Dassault Aviation, Rheinmetall AG, Elbit Systems Ltd., Naval Group, MBDA, NORINCO.

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

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 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.

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 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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