Asia-Pacific Ammunition Market

Description

Asia Pacific contributes one thirds of the total market valuation of the sector. Ammunition market witnessed sharp increase in growth rate in past two years as the terrorism has rapidly spread towards Asia Pacific and Europe adding to its presence in Middle East, Africa and Latin America which were always prone to violence and terrorist attacks. This can be attributed to the expansion of ISIS which replaced Al-Qaeda as the supreme terrorist organization.

Market Dynamics

Geopolitical disputes among the major economies and rising concerns regarding terrorist threats will be the primary factors driving the growth of ammunition market.

Governments need to procure ammunition for their law enforcement agencies to keep a check over the rising crime rate. Law enforcement agencies and public safety services encounter hostile situation where they are forced to use fire arms

This is one of the reason for the growth of the ammunition market. Ammunition are also used for activities such as sports and hunting. Unanticipated reforms in regulations restricting trade of arms and related equipment will challenge the global ammunition market share. Rising environmental concerns regarding the usage of lead bullets that are deployed in recreational activities such as hunting and sports may pose a considerable growth threat.

Market Segmentation

Ammunition market is segmented into

• On the basis of Product Segment – Bullets, Rockets, Mortars.  Bullets were the largest product segment in Asia Pacific region accounting for more than 50% of the Asia Pacific market in 2015.
• On the basis of Calibre – Small Calibre, Medium Calibre, Large Calibre, Artillery, Mortar.
• On the basis of Application – Defence and Civil. Civil segment includes self-defence, law enforcement and sports & hunting and is expected to have significant growth during the forecast period.

Geographical Analysis

Asia Pacific region, especially India is expected to do a comprehensive modernization of its armed forces and that includes its much talked about F- INSAS Program, which will equip Indian soldiers with modern equipment, thus boost the global Small Caliber Ammunition market

Also India will be buying Artillery guns in the near future to make up for the old Bofors guns which have become obsolete. Already 144 Dhanush guns which are indigenous and reworked Bofors guns are on order, but since the Army needs a total of 2,820 artillery guns of various kinds to service its needs, India will be a major market in the years to come. Also Japan in addition to India and China has been spending record high amount on defense expenditure to counter growing Chinese Aggression and is undertaking massive modernization drive to become the most advanced military in the world.