Small Arms Market Report 2026

The small arms market size has grown strongly in recent years. It will grow from $9.32 billion in 2025 to $9.79 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to increasing military procurement of lightweight firearms driving early market expansion, development of submachine guns and compact handguns enhancing close-quarters operational capability, rising global security threats boosting demand for law enforcement small arms, introduction of firearm customization and modification services improving weapon ergonomics and performance, growth of ammunition production supporting widespread adoption of small arms across sectors.

The small arms market size is expected to see steady growth in the next few years. It will grow to $11.76 billion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to advancements in lightweight materials and modular weapon designs improving adaptability and user mobility, rising demand for training and certification services to support safe firearm handling, increasing adoption of smart firearm accessories enhancing accuracy and situational awareness, expansion of private security sectors driving sustained procurement of small arms and related services, growing modernization programs in developing nations boosting demand for upgraded small arms platforms. Major trends in the forecast period include growing demand for modular and customizable small arms, increasing emphasis on lightweight materials and ergonomic weapon design, expansion of civilian ownership for sporting and self-defense, rising adoption of precision-focused firearm accessories, growth in training, certification, and maintenance services.

The rise in terrorist threats is expected to drive the growth of the small arms market in the coming years. Terrorist threats refer to warnings or signs of planned acts of violence intended to create fear and advance extremist objectives. The increase in such threats often stems from political instability, which provides opportunities for extremist groups to expand and carry out attacks. Small arms help address terrorist threats by offering rapid deployment and high mobility, making them vital tools for security and defense forces. They enable quick and accurate responses in critical situations, improving public safety and the effectiveness of counterterrorism efforts. For example, in September 2025, the Home Office, a U.K. government department, reported that in the year ending 30 June 2025, a total of 83 people were tried for terrorism-related offenses, five more than in the year ending 30 June 2024. Therefore, the rise in terrorist threats is contributing to the expansion of the small arms market.

Major companies operating in the small arms market are focusing on developing technologically advanced systems, such as computerized small arms systems, to enhance targeting accuracy, improve situational awareness, and integrate with modern battlefield networks. A computerized small arms system refers to a firearm integrated with digital technologies such as electronic targeting, fire control systems, data collection, and communication capabilities. For instance, in April 2024, Israel Weapon Industries Ltd., an Israel-based arms industry company, launched an Arbel. This system boosts lethality, accuracy, and survivability by up to three times, helping soldiers hit fleeting targets and reduce errors even under fatigue or stress. It also optimizes ammunition usage and reduces the need for extensive training while ensuring the weapon remains fully functional even when the computerized system is disabled.

In January 2023, NIOA Group, an Australia-based defense company, acquired Barrett Firearms Manufacturing Inc. for an undisclosed amount. With this strategic acquisition, NIOA Group seeks to strengthen its international presence by penetrating the US market and utilizing Barrett’s strong reputation to provide top-tier firearms and munitions. Barrett Firearms Manufacturing Inc. is a US-based manufacturing company specializing in providing small arms for military, law enforcement, and civilian use.

Major companies operating in the small arms market are Thales Group, Smith & Wesson Brands Inc., SIG Sauer GmbH & Co. KG, Sturm, Ruger & Co. Inc., FN Browning Group, Heckler & Koch GmbH, Colt’s Manufacturing Company LLC, GLOCK Ges.m.b.H., Fabbrica d'Armi Pietro Beretta S.p.A., Accuracy International Ltd, Indumil, PTR Industries Inc., Israel Weapon Industries Ltd, Caracal International LLC, Daniel Defense LLC, Browning International S.A., Brügger & Thomet AG, Kalashnikov Group, Česká zbrojovka Group, Steyr Arms GmbH USA, Zastava Arms.

North America was the largest region in the small arms market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the small arms 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 steel, firearm components, and optical accessories have increased production and import costs across the small arms market, particularly affecting manufacturers in North America, Europe, and Asia-Pacific involved in handgun, rifle, and ammunition production. These tariffs disrupt supply chains, raise retail prices, and slow procurement for defense and law enforcement sectors. However, they also stimulate localized manufacturing, encourage domestic sourcing of materials, and create opportunities for regional suppliers specializing in small arms components and armory services.

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

Small arms are lightweight firearms intended for individual use, designed for personal operation and handling. These weapons are mainly utilized by military personnel, law enforcement agencies, and civilians for defense, combat, and security functions. Small arms hold a crucial role in ensuring both national defense and internal security enforcement.

Key types of small arms include pistols, revolvers, rifles, shotguns, machine guns, and other variants. A pistol is a kind of handgun that features a single chamber combined with the barrel, and is typically semi-automatic in nature. These weapons function using various firing mechanisms, such as gas-operated, recoil-operated, and manual systems, and they can be operated in semi-automatic or automatic modes. Technologies employed may be either guided or unguided, and these arms are applied across several end-user sectors, including military, defense, law enforcement, as well as civilian and commercial applications such as sporting, hunting, self-defense, and more.

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

The small arms market consists of revenues earned by entities by providing services such as firearm repair and maintenance, training and certification for safe handling, customization and modification, armory management, and logistical support for supply and distribution. The market value includes the value of related goods sold by the service provider or included within the service offering. The small arms market also includes sales of handguns, submachine guns, light machine guns, ammunition, and firearm accessories. 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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