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According to the Aerospace, Security and Defence Industries Association of Europe, defense sector turnover rose by 13.8 percent in 2024, spurred by heightened military preparedness and support for active conflict zones. Despite this upward trajectory, market growth faces a significant obstacle due to a critical shortage of essential raw materials like nitrocellulose, which severely limits production capacity and causes delays in delivering vital munitions to armed forces.
Market Drivers
Rising global defense budgets serve as the primary catalyst for the 30mm ammunition market, with nations prioritizing the restocking of depleted reserves and the maintenance of high-intensity combat readiness. This financial surge targets consumable munitions essential for sustained operations, as evidenced by the Stockholm International Peace Research Institute's April 2024 report showing a 6.8 percent real-term increase in world military expenditure to $2.44 trillion. This spending power results in large-volume contracts, such as Rheinmetall's January 2024 order worth over €350 million to supply the German Bundeswehr with hundreds of thousands of 30mm x 173 rounds for the Puma infantry fighting vehicle.The market is also being reshaped by the surging demand for Counter-Unmanned Aerial System (C-UAS) capabilities, necessitating advanced programmable and air-burst munitions to neutralize small, agile drones. Armed forces are transitioning from conventional point-detonating rounds to proximity-fuzed solutions, driving procurement for platforms like the Mobile Short Range Air Defense system. This strategic shift is highlighted by USAspending.gov data from May 2024, noting that Northrop Grumman Systems Corporation received a contract potentially valued at $264.2 million to produce Lightweight 30mm XM1211 High Explosive Proximity cartridges, validating the move toward high-technology manufacturing.
Market Challenges
A severe structural impediment to the Global Consolidated Region 30mm Ammunition Market is the scarcity of essential raw materials, particularly nitrocellulose, which is the indispensable base for the propellant defining a munition’s velocity and effectiveness. When manufacturers are unable to secure sufficient volumes of this compound, production lines for 30mm rounds must halt regardless of the existing order backlog. This shortage extends beyond simple delivery delays; it imposes a strict cap on manufacturing capacity, preventing the industry from fully capitalizing on the intensified demand for modern lethality solutions.The situation is worsened by a fragile upstream supply network heavily reliant on a concentrated number of chemical precursor providers. The National Defense Industrial Association reported in 2024 that 49 percent of private sector respondents cited single or sole-source suppliers as their primary supply chain vulnerability. This highlights a critical risk where the inability to source nitrocellulose from diverse alternatives creates a bottleneck that restricts the sector's total output, physically constraining market expansion despite a favorable fiscal environment.
Market Trends
The localization of manufacturing is fundamentally altering supply chain strategies as nations aim to reduce reliance on cross-border logistics and ensure sovereign security of supply. Governments are increasingly mandating onshoring initiatives and establishing local production hubs to maintain inventory levels independent of global shipping bottlenecks, involving the transfer of technical data to domestic industrial bases. A clear example of this trend occurred in July 2024, when Defence Express reported that Northrop Grumman finalized a landmark agreement to produce NATO-standard medium-caliber ammunition, including 30mm rounds, within Ukraine to support immediate operational needs.Additionally, increased integration with remotely operated weapon stations is elevating the strategic value of 30mm munitions as an optimal balance between lethality and weight. As modern armored fleets transition from manned turrets to unmanned systems, there is growing demand for high-precision medium-caliber rounds that maximize effective range while ensuring crew protection. This trajectory was evidenced in November 2024, when Kongsberg Defence & Aerospace received a $51 million contract to supply 30mm remote turrets for the U.S. Marine Corps Amphibious Combat Vehicle, confirming the segment's shift toward unmanned firepower.
Key Players Profiled in the Consolidated Region 30mm Ammunition Market
- BAE Systems PLC
- Companhia Brasileira de Cartuchos
- Denel SOC Ltd.
- Elbit Systems Ltd.
- General Dynamics Corporation
- KNDS N.V.
- MSM Group s.r.o.
- Nammo A.S.
- Northrop Grumman Corporation
- Poongsan Corporation
Report Scope
In this report, the Global Consolidated Region 30mm Ammunition Market has been segmented into the following categories:Consolidated Region 30mm Ammunition Market, by Caliber:
- 20mm
- 25mm
- 30mm
- 40mm
- Other
Consolidated Region 30mm Ammunition Market, by Ammunition Type:
- High Explosive Incendiary (HEI)
- High Explosive Incendiary - Tracer (HEI-T)
- High Explosive Incendiary/Tracer - Self Destruct (HEI/T-S.D.)
- Semi-Armor Piercing High Explosive Incendiary-Tracer/Self Destruct
- Others
Consolidated Region 30mm Ammunition Market, by Platform:
- Airborne
- Naval
- Land
Consolidated Region 30mm Ammunition Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Consolidated Region 30mm Ammunition Market.Available Customization
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Table of Contents
Companies Mentioned
The key players profiled in this Consolidated Region 30mm Ammunition market report include:- BAE Systems PLC
- Companhia Brasileira de Cartuchos
- Denel SOC Ltd.
- Elbit Systems Ltd.
- General Dynamics Corporation
- KNDS N.V.
- MSM Group s.r.o.
- Nammo A.S.
- Northrop Grumman Corporation
- Poongsan Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 180 |
| Published | January 2026 |
| Forecast Period | 2025 - 2031 |
| Estimated Market Value ( USD | $ 3.73 Billion |
| Forecasted Market Value ( USD | $ 5.17 Billion |
| Compound Annual Growth Rate | 5.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |


