Artillery Ammunition Market Size & Outlook, 2026-2034

Artillery Ammunition Market Overview

The global artillery ammunition market size was valued at USD 5.32 billion in 2025 and is estimated to reach USD 8.74 billion by 2034, growing at a CAGR of 5.81% during the forecast period (2026–2034). Rising geopolitical tensions and military modernization programs are driving the market. Nations are investing in advanced, precision-guided, and long-range munitions to strengthen defense capabilities, enhance battlefield effectiveness, and maintain strategic superiority amid evolving global security challenges.

Key Market Trends & Insights

• North America held the largest market share, over 45% of the global market.
• Asia-Pacific is the fastest-growing region, with a CAGR of 6.53%
• By Type, the High-Explosive (HE) ammunition segment held the highest market share of over 40%.
• By Technology, the Precision-Guided Munitions (PGMs) segmentis expected to witness the fastest CAGR of 6.37%.
• By Caliber, the Medium Artillery Calibers (105–155 mm) segment held the highest market share of over 45%.
• By Applications, the Naval Artillery segmentis expected to witness the fastest CAGR of 6.67%.
• The U.S. artillery ammunition market was valued at USD 2.06 billion in 2024 and reached USD 2.18 billion in 2025.

Graph: The U.S. Market Revenue Forecast (2023 – 2034)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 5.32 billion
• 2034 Projected Market Size: USD 8.74 billion
• CAGR (2026-2034): 5.81%
• North America: Largest market
• Asia-Pacific: Fastest growing

Artillery ammunition refers to explosive projectiles designed to be fired from large-caliber guns, howitzers, or mortars. These munitions vary in type, including high-explosive, smoke, illumination, and specialized rounds, and are used to target enemy positions, fortifications, or vehicles. They are essential in both offensive and defensive military operations, supporting ground troops, disrupting supply lines, and providing strategic firepower in modern warfare scenarios.

The market is driven by the rising demand for advanced and reliable artillery systems across emerging economies. Increasing geopolitical tensions and the need for rapid-response capabilities encourage nations to invest in artillery ammunition production. Moreover, opportunities exist in developing environmentally friendly propellants, modular ammunition systems, and export markets in regions modernizing their defense infrastructure, offering manufacturers scope to innovate and expand globally.

Latest Market Trends

Increasing adoption of precision-guided and smart munitions for modern warfare

The global artillery ammunition market is witnessing a significant shift with the increasing adoption of precision-guided and smart munitions. Modern warfare demands greater accuracy, reduced collateral damage, and enhanced operational efficiency, driving militaries to invest in technologically advanced artillery systems that outperform traditional unguided shells.

Smart munitions offer real-time targeting capabilities, programmable fuses, and improved lethality, which are valued in combat scenarios. As defense forces focus on precision and efficiency, the integration of these sophisticated ammunition types is expected to accelerate market growth, fostering innovation and reshaping strategies in artillery deployment.

Shift from conventional artillery to extended-range and high-impact systems

Modern warfare is driving a transition in the artillery ammunition market from conventional shells to extended-range and high-impact systems. Armed forces are increasingly prioritizing superior reach, firepower, and battlefield effectiveness, leading to the adoption of advanced munitions capable of outperforming traditional artillery in both precision and impact.

The demand for long-range and high-impact ammunition is projected to rise, fueled by evolving combat strategies and the need for rapid, accurate engagement. These advanced systems enhance operational flexibility and destructive capability, allowing militaries to address contemporary threats while strengthening strategic advantage worldwide.

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Market Growth Factor

Rising defense budgets and modernization programs worldwide

The global artillery ammunition market is being strongly driven by rising defense budgets and modernization programs across the world. Nations are increasingly focusing on upgrading their military capabilities, incorporating advanced artillery systems to strengthen national security and strategic readiness.

• For instance, in 2025, the U.S. Army plans to produce 100,000 artillery shells per month, investing nearly $5 billion to upgrade facilities and meet growing demand.
• Similarly, in July 2025, Poland announced an investment of $665 million to increase domestic production of 155mm artillery shells, aiming to boost annual output from 30,000 to 150,000 by 2027.

Such initiatives highlight a global trend of prioritizing artillery modernization, fueling market growth and technological advancement in ammunition production.

Market Restraint

High costs associated with the research, development, and production of advanced munitions

The market faces significant restraints due to the high costs involved in the research, development, and production of advanced munitions. Developing precision-guided and smart artillery shells requires substantial investment in cutting-edge technology, testing, and quality assurance, which can limit accessibility for smaller defense manufacturers.

Moreover, the production of these munitions often demands specialized materials and sophisticated manufacturing processes, further driving up costs. These financial challenges can slow market expansion, especially in regions with limited defense budgets, potentially hindering the widespread adoption of next-generation artillery systems.

Market Opportunity

Integration of AI and sensors to enhance smart artillery capabilities

Rising demand for technologically advanced munitions is opening new opportunities in the artillery ammunition sector, particularly through the integration of Artificial Intelligence (AI) and smart sensors. Militaries are increasingly seeking systems that can rapidly detect, track, and engage evolving threats with higher precision and reduced operator workload.

• For instance, Aselsan's ATOM airburst ammunition exemplifies this innovation. Unveiled at Aselsan's Gölbaşı facilities near Ankara on October 7, 2025, the ATOM system uses AI-driven algorithms and advanced sensors to counter fast-moving drones and loitering munitions. Integrated into the Steel Dome defense suite, it provides comprehensive aerial protection while enhancing operational efficiency.

These advancements underscore the growing reliance on AI and sensor fusion to enhance artillery effectiveness and operational efficiency.

Regional Analysis

North America’s artillery ammunition market is dominant with a market share of over 45%, driven by strong defense budgets, modernization programs, and extensive R&D in next-generation munitions. North America’s defense sector focuses on advanced propellant formulations, precision-guided systems, and extended-range ammunition to enhance battlefield capabilities. Continuous investments in automation, AI integration, and supply chain resilience have strengthened regional production. Moreover, collaborations among defense contractors, ammunition manufacturers, and government agencies ensure steady technological upgrades and sustained demand across multiple artillery platforms.

The United States artillery ammunition market is led by companies such as BAE Systems, Northrop Grumman, and General Dynamics. These firms are focusing on developing precision-guided munitions, extended-range projectiles, and automated production systems to enhance combat efficiency and ensure ammunition availability for defense modernization programs.

Canada’s market is expanding with firms like General Dynamics Ordnance and Colt Canada investing in manufacturing upgrades. Many efforts are currently focused on producing precision, low-collateral munitions and collaborating with allied partners to improve interoperability and strengthen the nation’s defense supply chain capabilities.

Asia-Pacific: Significantly Growing Region

Asia-Pacific’s artillery ammunition market is the fastest-growing, with a CAGR of 6.53%, fueled by rapid military modernization, cross-border tensions, and increased defense spending. Governments are investing heavily in smart munitions, indigenous manufacturing, and long-range artillery systems. Expansion of domestic defense industries and collaborations with foreign contractors enhances local ammunition capabilities. As per Straits Research, advanced R&D initiatives are focusing on propellant optimization, material durability, and fire control integration to improve operational accuracy and efficiency across artillery applications.

China’s artillery ammunition market is led by companies like NORINCO and China North Industries Group, which are investing in long-range precision systems and AI-integrated targeting solutions. Moreover, focus areas include automated production, cost-efficient materials, and high-impact rounds for both conventional and self-propelled artillery systems.

India’s market is growing, with firms such as Bharat Dynamics Limited (BDL) and Ordnance Factory Board (OFB) developing smart and extended-range shells. Moreover, the focus is on boosting indigenous manufacturing, enhancing accuracy, and expanding exports through partnerships with global defense technology providers.

Source: Straits Research

European Market Trends

Europe’s artillery ammunition market is witnessing robust growth, driven by ongoing regional security challenges and rising defense budgets. The region is prioritizing self-sufficiency in ammunition production through advanced manufacturing systems and modernization of legacy artillery assets. Moreover, collaborative initiatives between NATO members and regional manufacturers aim to strengthen joint defense capabilities, streamline procurement, and maintain strategic stockpiles amid increasing geopolitical tensions.

Germany’s market is supported by leading defense firms such as Rheinmetall AG and Diehl Defence. These companies are advancing high-performance propellant technologies and smart munitions tailored for Leopard and PzH 2000 artillery systems, while also expanding export capacity to meet growing demand.

Latin America Market Trends

Latin America’s artillery ammunition market is expanding, supported by modernization efforts and internal security initiatives. Nations across the region are emphasizing the development of cost-efficient, multipurpose munitions and collaborating with global defense firms for knowledge transfer. Rising investments in surveillance and border defense systems have increased the demand for lightweight, durable, and accurate ammunition types suitable for diverse operational terrains. The region’s defense programs are also promoting public-private partnerships to improve local production and reduce import dependence.

Brazil’s market is spearheaded by companies like CBC (Companhia Brasileira de Cartuchos) and Avibras Aeroespacial. They are focusing on expanding domestic ammunition manufacturing, developing high-caliber rounds, and exporting to neighboring countries, strengthening Brazil’s position.

Middle East and Africa Market Trends

The Middle East and Africa artillery ammunition market is experiencing steady growth, propelled by regional conflicts, modernization programs, and the need for advanced defense infrastructure. Governments are increasingly investing in long-range and precision-guided munitions, along with localized ammunition assembly facilities. Strategic collaborations with Western and Asian defense suppliers are helping strengthen supply resilience and upgrade existing arsenals. The focus is also shifting toward smart artillery systems that enhance accuracy and reduce collateral damage in complex combat environments.

Saudi Arabia’s market is led by defense entities like Saudi Arabian Military Industries (SAMI) and EDGE Group’s partnerships. The country is investing in indigenous ammunition manufacturing, guided artillery rounds, and technology transfer programs to achieve greater self-reliance in its defense capabilities.

Type Insights

High-Explosive (HE) ammunition dominates the global artillery ammunition market, accounting for over 40% of total revenue. Its widespread use across military operations for both offensive and defensive strategies drives its prominence. The segment’s demand is reinforced by its adaptability in various terrain and combat situations, making it the preferred choice for modern defense forces seeking versatile and cost-effective firepower solutions.

Cluster Munitions are emerging as the fastest-growing segment, projected to record a CAGR of 6.12%. Their ability to engage multiple targets simultaneously enhances battlefield efficiency, especially in large-scale operations. Growing emphasis on rapid area coverage and advanced submunition technologies supports their adoption. Despite regulatory concerns in certain regions, modernization efforts in defense sectors continue to propel this category’s steady expansion worldwide.

Source: Straits Research

Technology Insights

Conventional Munitions remain the dominant technology in the artillery ammunition market, holding over 50% of market share. Their proven reliability, ease of production, and cost-effectiveness make them the backbone of most national defense arsenals. While newer technologies are emerging, conventional rounds continue to serve as a critical foundation for large-scale military inventories, especially in regions prioritizing volume-based firepower.

Precision-Guided Munitions (PGMs) represent the fastest-growing segment, registering a robust CAGR of 6.37%. Their rise stems from a global push toward smarter warfare and reduced collateral damage. PGMs integrate advanced navigation, GPS, and sensor technologies, enabling pinpoint accuracy in dynamic environments. Increased defense investments in guided systems are driving their adoption across regions.

Caliber Insights

Medium Artillery Calibers (105–155 mm) dominate the market, accounting for over 45% share. These calibers offer an optimal balance between firepower, range, and mobility, making them the standard choice for most military forces. Widely used in field and self-propelled artillery systems, their consistent performance and compatibility with evolving shell technologies further strengthen their market leadership.

Large Artillery Calibers (Above 155 mm) are the fastest-growing category, anticipated to grow at a CAGR of 6.43%. The increasing demand for extended-range and high-impact systems is fueling their adoption. Modern armies are integrating these calibers into advanced platforms for long-range precision attacks, enhancing their deterrence capabilities in both land-based and coastal defense applications.

Applications Insights

Field Artillery leads the artillery ammunition market with a commanding 45% market share. Its dominance stems from widespread utilization in land-based military operations for area suppression and long-range engagements. Continuous upgrades in field artillery systems and integration with advanced targeting mechanisms have sustained this segment’s importance across global defense programs.

Naval Artillery is the fastest-growing application segment, projected to expand at a CAGR of 6.67%. Increasing maritime security concerns, coupled with the modernization of naval fleets, are boosting demand for advanced ammunition. Nations are investing in naval guns equipped with high-caliber, rapid-firing capabilities to strengthen coastal defense and sea-based deterrence operations, driving this segment’s strong upward momentum.

Company Market Share

Leading companies in the artillery ammunition market focus on advanced munitions, including precision-guided shells, smart artillery systems, and extended-range projectiles. They invest heavily in research and development, integrating AI, sensors, and automated targeting technologies to enhance accuracy and operational efficiency. Production also emphasizes high-quality materials and scalable manufacturing, supporting global defense modernization programs and strategic military capabilities.

BAE Systems plc

BAE Systems plc, a British multinational defense, security, and aerospace company, was formed on November 30, 1999, through the merger of British Aerospace (BAe) and Marconi Electronic Systems. Headquartered in London, UK, BAE Systems operates globally, with significant operations in the United States through its subsidiary, BAE Systems Inc. The company is a major supplier to the UK Ministry of Defence and the U.S. Department of Defense, providing advanced military technologies and systems.

• In September 2025, BAE Systems partnered with Poland's state-run defense group, Polska Grupa Zbrojeniowa (PGZ), to establish a new 155mm artillery ammunition manufacturing facility in Poland. This collaboration aims to bolster Poland's defense capabilities and reduce reliance on imported munitions.

List of key players in Artillery Ammunition Market

1. Rheinmetall AG
2. BAE Systems plc
3. General Dynamics Corporation
4. Northrop Grumman Corporation
5. Thales Group
6. Nammo AS
7. Hanwha Aerospace
8. Elbit Systems Ltd.
9. Leonardo S.p.A.
10. Saab AB
11. FN Herstal (Herstal Group)
12. Fiocchi Munizioni S.p.A.
13. Olin Corporation
14. Vista Outdoor Inc.
15. Prvi Partizan A.D.
16. Hornady Manufacturing Company
17. Ceska zbrojovka a.s.
18. Nosler Inc.
19. ARSENAL JSCo.
20. Solar Group

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Recent Development

• October 2025 - At FEINDEF 2025, Nammo unveiled a ramjet-propelled 155mm artillery shell capable of supersonic speeds and extended ranges up to 150 km. This innovation enhances strike capabilities and reduces exposure to counter-battery fire.
• September 2025 - Rheinmetall announced plans to establish a modern 155 mm artillery ammunition production facility in Latvia, marking a significant expansion of its European manufacturing capabilities. The €275 million investment will be managed through a joint venture.
• March 2025 - BAE Systems and Repkon USA signed a Memorandum of Understanding (MoU) to collaborate on developing advanced munitions. This partnership aims to enhance the range, precision, and performance of ammunition by sharing technology and manufacturing expertise.