Artillery Ammunition Market Size, Share, and Growth Forecast 2025–2032

1. The global artillery ammunition market was valued at USD 7.91 billion in 2024 and is projected to increase from USD 8.57 billion in 2025 to USD 13.52 billion by 2032, reflecting a CAGR of 6.7%. North America led the market with a 34.13% share in 2024, driven by large-scale procurement programs and replenishment of depleted stockpiles. Competitive Landscape The market remains highly competitive, with leading players such as BAE Systems, Rheinmetall, Hanwha Aerospace, General Dynamics, Nammo, Elbit Systems, and KNDS expanding production and developing advanced technologies. Key developments include: Rheinmetall (Jan 2025): USD 23.9M contract to supply 155mm M107 shells, aiming for 1.1 million shells/year by 2027. Hanwha Aerospace (Apr 2025): USD 253M deal with India for 100 K9 Vajra-T howitzers, with 60% local production. BAE Systems (Apr 2025): USD 162M contract to produce M777 howitzer structures in the U.K. Nexter/KNDS (2024): Expansion of propellant powder capacity in collaboration with Nammo to strengthen Europe’s supply chain. Information Source: https://www.fortunebusinessinsights.com/artillery-ammunition-market-113575 Impact of Russia-Ukraine War The Russia-Ukraine conflict has become the most significant driver of artillery ammunition demand in recent years. The war has underscored the vital role of artillery systems in modern warfare, highlighting the need for both mass-produced conventional rounds and precision-guided artillery munitions (PGMs). Russia has reportedly expanded its artillery shell stockpile to nearly three times larger than the combined capacity of the U.S. and Europe, while NATO allies are racing to boost production. In January 2024, NATO finalized contracts worth USD 1.2 billion for 220,000 artillery shells, part of a broader USD 10 billion initiative to strengthen ammunition supplies. Efforts to support Ukraine’s artillery capacity are also intensifying. Norway, for example, approved the transfer of Nammo defense technology to Ukraine for domestic production of 155mm shells, backed by over USD 7 billion in aid through its Nansen Support Programme. Similarly, multiple European nations are scaling up domestic plants to ensure continuous supply.

2. Market Trends – Precision and Extended Range Capabilities Traditional unguided artillery shells are gradually being replaced by precision-guided rounds, capable of delivering high accuracy and minimizing collateral damage. The U.S. Navy and General Atomics are developing LRMP 155mm precision-guided projectiles with ranges exceeding 120 km, while BAE Systems is advancing sub-caliber precision rounds under the XM1155 program. Another emerging trend is the adoption of rocket-assisted and ramjet-propelled ammunition. Nammo recently unveiled a 155mm ramjet shell capable of striking targets up to 150 km, a major leap over conventional systems. Start-ups like Tiberius Aerospace are also entering the market with next-generation ramjet-powered rounds designed for deep- strike missions. Market Drivers and Restraints The surge in defense spending across Europe, North America, and Asia Pacific is a major growth driver. The EU, for instance, allocated USD 566.6 million under the ASAP (Act in Support of Ammunition Production) initiative to raise annual production to 2 million shells by 2025. Similarly, the U.S. Congress approved USD 6 billion in 2024 to double its 155mm artillery production. However, the industry faces hurdles. High development costs of PGMs and ramjet-powered ammunition limit affordability for countries with smaller budgets. Moreover, export regulations and arms control treaties create barriers for global trade, while environmental concerns over toxic propellants may lead to tighter restrictions. Regional Outlook

3. North America: Dominates the market due to large-scale production investments. The U.S. has expanded facilities in Arkansas for 155mm rounds and continues to modernize inventories. Europe: Rapidly increasing artillery output, with the U.K. investing USD 2.02 billion in new factories and France’s Nexter supplying advanced howitzers and propellant systems. Asia Pacific: Witnessing robust growth driven by India and China, both expanding domestic production. India’s Reliance Defense partnered with Rheinmetall to produce 200,000 shells annually, while China is developing AI-powered laser-guided artillery. Latin America & Middle East: Growth is moderate but supported by modernization programs. Brazil ordered 155mm howitzers, while Saudi Arabia launched the SABIR guided artillery project under Vision 2030. Outlook The artillery ammunition market is entering a new phase of growth, fueled by the ongoing Russia-Ukraine conflict, increasing geopolitical tensions in Asia, and NATO’s modernization push. While conventional shells remain critical for large-scale combat, the future of the industry is shifting toward precision, extended-range, and smart artillery systems.