European Ammunition Market

Description

Europe is a major contributor to the total market valuation of the ammunition 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 organisation.

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 mainly bullets, rockets, mortars on the basis of product segment. Bullets were the largest product segment holding major shares in the market. On the basis of Calibre the market is segmented into Small Calibre, Medium Calibre, Large Calibre, Artillery, Mortar. On the basis of application, the market is segmented into 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

The recent development of growing arms race in Middle East, Africa and Asia Pacific has its effects on the Industry. Countries such as South Korea, India, Pakistan and China are modernizing their military equipment whereas several European nations are steadily demilitarizing themselves. The recent economic meltdown had increasing effect to the plunging European share in Ammunition market.

Currently, major European spending in Ammunition sector goes for building of defence forces to fight rising waves of terrorism. Many European nations are concentrating more on replacement and refurbishment of older weapons and ammunitions rather creating new infrastructure. Russia stands as the European market leader of the sector which is expected be there till 2021

Key players

Some of the key market players operating in the European ammunition market are BAE Systems (U.K.), EADS (Trans European), Almaz-Antei (Russia), Finmeccanica(Italy), Safran (France), Rheinmetall (Germany) and Nammo AS (Norway).