According to Fortune Business Insights, the global artillery ammunition market size was valued at USD 8.57 billion in 2025 and is projected to grow from USD 9.35 billion in 2026 to USD 14.76 billion by 2034, exhibiting a CAGR of 5.88% during the forecast period. North America dominated the artillery ammunition market with a 33.50% market share in 2025.
Artillery ammunition forms an important part of national defense capabilities and military procurement programs. Growing defense expenditure, ammunition stockpile replenishment, modernization programs, and efforts to strengthen domestic defense manufacturing are contributing to market development across several regions.
Rising Defense Expenditure Supports Market Growth
Increasing defense budgets across various countries are supporting demand for ammunition and related defense products. Governments are allocating resources toward the modernization of armed forces and replenishment of strategic inventories.
Geopolitical developments and changing defense priorities have also encouraged several countries to review their ammunition supply chains and production capabilities. This trend is creating opportunities for established defense manufacturers as well as domestic producers expanding their manufacturing capacity.
Focus on Domestic Defense Manufacturing
Governments are increasingly emphasizing domestic production of defense equipment and ammunition to strengthen supply-chain resilience. Local manufacturing initiatives can reduce dependence on international suppliers while supporting broader defense-industrial capabilities.
Several countries are therefore investing in ammunition manufacturing infrastructure, production facilities, and partnerships with established defense companies. These initiatives are expected to contribute to the long-term development of the artillery ammunition market.
North America Leads the Market
North America accounted for 33.50% of the global artillery ammunition market in 2025, making it the leading regional market. The region benefits from substantial defense expenditure, established defense manufacturing capabilities, and ongoing military modernization programs.
The U.S. represents a significant contributor to regional demand due to its large defense procurement programs and emphasis on maintaining adequate strategic inventories. Continued investments in defense manufacturing and supply-chain capacity are expected to support the regional market.
Manufacturing Capacity and Supply Chains Gain Importance
The expansion of manufacturing capacity has become an important area of focus within the defense industry. Manufacturers are working to improve production efficiency, expand facilities, and strengthen supply networks to meet government procurement requirements.
Supply-chain resilience is particularly important for defense organizations because procurement programs often involve long-term requirements and strict quality standards. Companies with established manufacturing infrastructure and diversified supply capabilities are positioned to participate in these procurement programs.
Competitive Landscape
The global artillery ammunition market includes major defense and aerospace companies as well as specialized ammunition manufacturers. Companies identified in the market include BAE Systems plc, Rheinmetall AG, Lockheed Martin Corporation, Hanwha Aerospace, General Dynamics Corporation, Nammo AS, Elbit Systems Ltd., Thales Group, KNDS, Denel SOC, Poongsan Corporation, CBC Global Ammunition, Rostec (Techmash), ST Engineering, Arsenal JSCo, Munitions India Ltd., Ukroboronprom, Roketsan, IMI Systems, NORINCO, CSG Defense, and Leonardo S.p.A.
These companies participate in defense procurement programs across different markets and focus on manufacturing capabilities, supply-chain expansion, product development, and long-term government contracts. Strategic partnerships and investments in production infrastructure are also important aspects of competition within the industry.
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Future Outlook
The artillery ammunition market is expected to benefit from defense modernization programs, inventory replenishment, increased government spending, and the expansion of domestic defense manufacturing capabilities.
With the global market projected to reach USD 14.76 billion by 2034, manufacturers are expected to focus on expanding production capacity, strengthening supply chains, and meeting evolving government procurement requirements. Continued investments in defense infrastructure and ammunition manufacturing are likely to remain important factors shaping the market over the forecast period.
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