Artillery Market

Market Overview

The global artillery market is estimated to progress at a healthy CAGR of 6.7% during the forecast period 2020–2027. The market size of artillery is estimated at USD 11.65 billion by the end of 2019.

Artillery can be defined as the ammunition devices and consumable ammunition stock available in any specific army and security services. With highly engaging activities at the international borders and countries increasing their defense investments and power of the armed forces, the artillery market is expected to observe considerable development over the slated period. 

Artillery systems can have its applications in armed forces, naval army, and defense air force. Additionally, the countries are making investments and developing their armies and artilleries to gain international affairs prominence. They secure their countries and borders in times of invasion or inception of armed conflict with the neighboring nations or any other countries due to controversial claims on foreign lands.

Market Dynamics

The major driving factor for the market is the development of long-range and highly lethal artillery systems that inflict damage army of the enemy nation. The artillery can better control operations and maintain the stronghold on the battlefield by employing better strategies to inflict more damage and progress steadily in the actual battlefield engagement.

Increasing Border Disputes and Priority to Safeguard International Boundaries

According to our analysis and evaluation of the recent armed conflicts amongst the several nations, it has become evident that countries require an artillery system which can provide the ability to create highly lethal attacks and precision over-targeting across the long-range of targets. Additionally, the immediate escalations of the tensions amongst the borders shared by the countries create a situation of an intense and fierce battlefield that requires the strong support of the artillery units to minimize and obstruct the aggressive advancements of the opponent troops and gain the position advantage at the moment. The development of hybrid warfare with the advancement in the weapons and engagement tactics which is developing the opportunity for the growth of the artillery market

Since the COVID-19 outbreak, governments in various countries are focusing on tackling the country's health hazard, which is anticipated to limit the governments' expenditure on defense spending over the first half of the forecast period. Also, the ban on Theonal trade and travel greatly disturbs the supply chain and availability of raw materials, reducing the companies' manufacturing capacity. Further, the trade war between China and the U.S. and escalation of tensions between Iran and the U.S. holds the capability to change the market landscape.

Inefficiency to Adapt to Diverse Climatic Conditions Restricting Usefulness for Certain Countries

The development and usefulness of the artillery units also depend on the region's climate conditions where the units are deployed. The development of artillery systems which can be used regardless of the weather and climatic limitations still stands as the biggest challenge for the market participants with a strong level of expertise and ability to develop new and developed products. This limitation also serves as a threat to the development of the market across the regions.

For instance, India is a country that needs to tackle its enemy in diverse climatic conditions, which increase the vitality of the artillery system, which can function in diverse climatic conditions, increasing the usefulness of the devices and artillery systems. For example, India shares the boundaries with the neighboring nations in the desert locations, which require firepower operational in high-temperature areas; also, it has boundaries in the regions with freezing temperature conditions and boundaries in valley region and mountain region. Thus, such countries are requisite of artillery systems developed to perform significantly and efficiently across the regions.

Segmental Analysis

Based on the component, the fire control system is anticipated to hold a leading share globally. In terms of market development, the ammunition handling system is expected to have the highest growth perspectives globally. The rise in tensions among the U.S. and Iran troops and the eruption of war between Armenia and Azerbaijan increased emergencies. It developed the battlefield across the region, encouraging countries to focus on ammunition availability and management and enhance their firepower abilities.

Additionally, as per our analysis, medium-range artillery systems are expected to govern the market's significant share. The long-range segment observes high intensity of growth perspectives in the region. The need for weapons to attack the opponent troops from a distance and target the enemy established bases and camps with great precision the need for a high-range artillery system is expected to develop in the global market.

Regional Analysis

North America's market is expected to emerge as the most impactful region with the lion's share in the global artillery market. With the majority of the market being governed by the U.S., the U.S.'s extensive defense and security investments to enhance its artillery capacity and warfare abilities are why the country's prominence outpaces the global superpowers such as Russia and China.

As of the 2019 budget for security and defense, the country's federal administration finalized the approval of an annual budget of USD 686.1 billion. The government further stated that USD 617 billion is deemed as the necessary budget for the defense. In contrast, the USD 69 billion are approved as war funding—many aircraft carriers develop long-range and highly lethal missiles. Established and powerful systems for the development of military capabilities are further augmenting the stronghold of the U.S. market, thus spurring the market share of the region of North America.

Asia-Pacific region is anticipated to register the fastest pace for developing the market and is expected to outpace the North America region over the second half of the forecast period. The investments by nations in South Asia, especially India, protect the international boundaries and maintain their position on the Line of Control set across the dispute areas. China is also making hefty investments in developing firepower and artillery systems to develop the People's Liberation Army's ability in the country. China shares dispute over control of the land and the water boundaries' governance with India, Japan, Vietnam, and South Korea. To fortify their claims and establish its dominance in the region, China furthers its defense abilities, which provides high growth prospects for developing the market across the globe.

Recent Developments

The companies are also signing supply agreements and venturing into multiple contracts with the defense ministry and armed forces of these countries to create a sustainable source for the stable revenue generation and increase the market presence. Many market players are also strengthening the developing business relations with the federal governments by signing accords regarding the manufacturing of products in the country, which require the products and establishment of infrastructure in the countries.

For instance, General Dynamics Corporation has finalized its contract with the U.S. Army to develop a 155mm artillery ammunition prototype and develop the ability to extend the cannon range beyond the existing ability to hit the target within 24 miles. Lockheed Martin Corporation is keen on the development and production of high mobility artillery rocket system launchers.

Artillery Market Segmentation

By Component

• Gun Turret
• Fire Control System
• Ammunition Handling System
• Auxiliary System

By Range

• Short Range
• Medium Range
• Long Range

By Type

• Mortar
• Rocket Artillery
• Howitzer

By Caliber

• Small Caliber
• Medium Caliber
• Heavy Caliber

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• The U.K.
• Italy
• France
• Spain
• Germany
• Rest of Europe

The Middle East and Africa (MEA)

• Saudi Arabia
• Egypt
• South Africa
• Rest of MEA

Asia-Pacific

• India
• China
• Japan
• Australia
• South Korea
• Rest of Asia-Pacific

South America

• Colombia
• Chile
• Peru
• Argentina
• Rest of South America