Arms and Ammunition Market Global Report 2026

The arms and ammunition market size has grown strongly in recent years. It will grow from $52.03 billion in 2025 to $55.45 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to rising geopolitical tensions and border security concerns, increasing military modernization and defense procurement initiatives, growing global defense expenditure allocations, expansion of law enforcement and homeland security operations, and increasing demand for advanced tactical and combat equipment.

The arms and ammunition market size is expected to see strong growth in the next few years. It will grow to $72.16 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising investments in next-generation defense technologies, increasing adoption of smart and precision-guided ammunition systems, expansion of autonomous and network-connected combat platforms, growing focus on domestic defense manufacturing capabilities, and increasing procurement of advanced weapons for asymmetric warfare preparedness. Major trends during the forecast period include increasing modernization of infantry weapon systems and ammunition platforms, rising demand for lightweight and highly durable combat weapons, growing adoption of modular weapon configurations for greater tactical flexibility, expansion of precision-guided ammunition development programs, and increasing focus on enhanced operational readiness and defense stockpiling initiatives.

The growing geopolitical tensions are expected to drive the expansion of the arms and ammunition market in the coming years. Geopolitical tensions refer to strained or conflict-driven relationships among countries or regions arising from political, economic, military, or strategic disputes. The increase in geopolitical tensions is attributed to escalating cross-border security challenges and regional military confrontations, prompting governments to reinforce defense capabilities, improve military preparedness, and invest in advanced security technologies. Arms and ammunition contribute to geopolitical tensions by enhancing military readiness and strengthening national defense capabilities, while increasing regional conflicts and security concerns continue to fuel demand for advanced weaponry and ammunition supplies. For example, in July 2024, according to The Armed Conflict Location & Event Data Project (ACLED), a US-based non-profit organization, more than 165,273 political violence incidents were recorded globally, representing a 15% increase between July 2023 and June 2024. Therefore, the rise in geopolitical tensions is driving the growth of the arms and ammunition market.

Major companies operating in the arms and ammunition market are emphasizing technological innovations such as optics mounting systems to improve targeting precision, enhance weapon adaptability, facilitate quicker and more secure attachment of optical sights, and boost operational performance across various combat and tactical scenarios. An optics mounting system refers to a firearm design and attachment mechanism that enables the secure installation of red-dot sights or other optical aiming devices. For instance, in July 2023, Springfield Armory Inc., a US-based firearms manufacturer, introduced the Echelon 9mm pistol, a striker-fired modular handgun built with a patent-pending Central Operating Group and Variable Interface System for direct optics integration. The pistol incorporates ambidextrous controls, interchangeable grip modules, advanced safety features, and high-capacity magazine options, offering enhanced versatility, durability, and performance for defense and tactical use.

In August 2023, Rheinmetall AG, a Germany-based defense and automotive technology company, acquired Expal Systems S.A.U. for an undisclosed sum. Through this acquisition, Rheinmetall seeks to substantially increase its ammunition production capacity and reinforce its integrated European supply network for artillery, mortar, and medium-caliber munitions by utilizing Expal’s manufacturing facilities and expertise in energetic materials and ammunition technologies. Expal Systems S.A.U. is a Spain-based defense company specializing in the manufacture of artillery ammunition, mortar rounds, and propulsion systems for military applications.

Major companies operating in the arms and ammunition market are RTX Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, General Dynamics Corporation, Thales Group, Leonardo S.p.A., L3Harris Technologies Inc., Hanwha Corporation, Rheinmetall AG, Elbit Systems Ltd., Czechoslovak Group a.s. (CSG), KNDS N.V., CZG - Colt CZ Group SE, FN Herstal S.A., Heckler And Koch GmbH, SIG Sauer GmbH & Co. KG, Nammo AS, Glock Inc., Smith & Wesson Brands Inc., Fabbrica d'Armi Pietro Beretta S.p.A., CBC Global Ammunition, Denel SOC Ltd, NIOA Group Pty Ltd., AMMO Inc., Armscor Global Defense Inc., Steyr Arms GmbH, Nosler Inc.

North America was the dominant region in the arms and ammunition market in 2025. Asia-Pacific is expected to be the rapidly expanding region in the forecast period. The regions covered in arms and ammunition report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the arms and ammunition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The arms and ammunition market consists of sales of pistols and revolvers, machine guns, grenade launchers, bullets, rockets and missile warheads, and weapon magazines and clips. 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.

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

This product will be delivered within 1-3 business days.