Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 1.02
Billion
|
CAGR (2025-2030)
|
9.35%
|
Fastest Growing Segment
|
40-60mm
|
Largest Market
|
China
|
Market Size (2030)
|
USD 1.73 Billion
|
Market Overview
Asia-Pacific Large Caliber
Ammunition market was valued at USD 1.02 billion in 2024 and is expected to grow to USD 1.73 billion by 2030 with
a CAGR of 9.35% during the forecast period. The Asia-Pacific
Large Caliber Ammunition market is driven by several factors, including rising
defense budgets across key countries like China, India, and Japan. These
nations are investing heavily in military modernization, leading to a growing
demand for advanced weaponry and ammunition. Geopolitical tensions in the
region, particularly in areas like the South China Sea and the Korean
Peninsula, are further fueling the need for enhanced defense capabilities. Also,
the increasing focus on improving military readiness and acquiring
precision-guided munitions to counter emerging threats is driving the demand
for large caliber ammunition. These factors collectively contribute to the
market's growth in the Asia-Pacific region.
Key Market Drivers
Surging
Defense Budget
The surging defense budgets in the Asia-Pacific region
are a major driver of the large caliber ammunition market. As a part of
this, according to IBEF, as of 2024, India's defence expenditure of USD 74.7
billion was the fourth biggest in the world. As of 2022, India has the world's
fourth largest defence budget and has set a target of USD 6.02 billion (Rs.
50,000 crore) in annual defence exports by 2028–29. Countries like China,
India, Japan, and South Korea are significantly increasing their military expenditures
to modernize defense infrastructure, enhance combat readiness, and address
growing security concerns. As these nations bolster their armed forces, there
is a rising demand for advanced weaponry, including large caliber ammunition
used in artillery, tanks, naval systems, and other military platforms.
China, with its strategic military ambitions, has
consistently raised defense spending to expand and upgrade its armed forces,
while India and Japan are also focusing on enhancing their defense capabilities
due to regional security challenges. This growing investment in military assets
necessitates the procurement of large caliber ammunition, as it is integral to
ensuring effective and powerful weapon systems. Also, the Asia-Pacific region is
home to multiple territorial disputes and geopolitical tensions, particularly
in areas like the South China Sea, which increase the urgency for defense
preparedness. As these countries aim to strengthen their military deterrence,
the demand for large caliber ammunition will continue to rise. The surging
defense budgets in the region thus play a pivotal role in driving growth in the
Asia-Pacific large caliber ammunition market.
Rising
Government Funding for the Naval Sector
Rising government funding for the naval
sector is a key driver of the Asia-Pacific large caliber ammunition market. As
a part of this, as of 2023-24, the allocation for the three defence services
(including pension) is Rs 5,54,875 crore, or 93% of the Ministry's overall
budget allocation. The Army contributes
for 57% of the budget, with the Navy and Air Force accounting for 17% and 19%,
respectively. The expenditure ratio for
the Army, Navy, and Air Force is 3.4:1:1.2.
The army has the greatest pension requirements of the three
services. Excluding pensions, the Army,
Navy, and Air Force will spend 2.4:1:1.1 in 2023-24. The allocation to the Army is likely to
remain basically similar in 2023-24 compared to the revised projection for
2022-23, while the Navy and Air Force allocations are expected to increase by
6% and 2%, respectively. As nations in the region strengthen their naval
capabilities, there is a significant increase in the demand for large caliber
ammunition used in naval artillery, warships, and submarines. Countries like
China, India, Japan, and South Korea are making substantial investments in
modernizing their naval fleets, and this includes the acquisition of advanced
large caliber ammunition for long-range precision strikes and enhanced defense
capabilities at sea.
The growing focus on safeguarding
maritime borders, securing vital sea lanes, and asserting territorial claims,
particularly in the South China Sea, has driven many governments to prioritize
naval expansion. Large caliber ammunition is crucial in providing naval forces
with the firepower needed to counter both conventional and asymmetrical
threats, such as enemy warships, submarines, and aerial attacks. Also, the
ongoing military rivalry and regional security concerns between neighboring
countries have prompted substantial investments in naval assets, further
boosting the demand for large caliber rounds. As naval modernization continues
to be a top priority for many Asia-Pacific nations, the demand for large
caliber ammunition will remain strong, providing significant growth
opportunities for the market. Rising government funding for the naval sector
directly contributes to the expansion of this segment within the broader
defense and ammunition markets in the region.
Military
Modernization
Military modernization is a key driver of the Asia-Pacific
large caliber ammunition market. As countries in the region focus on enhancing
their military capabilities, there is a significant push to modernize weaponry,
including the acquisition of advanced large caliber ammunition. Nations such as
China, India, Japan, and South Korea are investing heavily in upgrading their
armed forces to improve their strategic position and ensure greater combat
effectiveness.
This modernization includes the replacement of
outdated weaponry systems with more sophisticated and powerful platforms, such
as advanced tanks, artillery, naval systems, and aircraft. Large caliber
ammunition is essential for these new systems, providing the firepower needed
for long-range precision strikes and effective combat performance. Also,
military modernization efforts often prioritize the development of advanced,
high-tech munitions, such as guided projectiles and high-explosive rounds, to
increase operational efficiency and target accuracy. The growing demand for
advanced military systems, combined with increasing defense budgets, has led to
a surge in the procurement of large caliber ammunition across the Asia-Pacific
region. This trend is particularly notable in countries like China and India,
where significant investments are being made to modernize both land and naval
forces in response to regional security concerns. Hence, military modernization
is driving the demand for large caliber ammunition in Asia-Pacific, ensuring
continued growth in the market.
![Asia-Pacific Large Caliber Ammunition Market](https:\\www.techsciresearch.com\admin\gall_content\2025\1\2025_1$image_24_Jan_2025_175928407Asia-Pacific Large Caliber Ammunition Market 1.webp)
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Key Market Challenges
Rising Production Cost
Rising production costs pose a significant challenge
to the Asia-Pacific large caliber ammunition market. The manufacturing of large
caliber ammunition involves complex processes, requiring high-quality materials
such as metals (brass, steel, and aluminum), explosives, and propellants. The
prices of these raw materials have been subject to fluctuations due to global
supply chain disruptions, trade restrictions, and rising demand from both defense
and civilian industries. These cost increases directly impact the overall
production costs for ammunition manufacturers.
Also, the integration of advanced technologies, such
as precision guidance systems, in large caliber rounds adds to the production
cost. The need for rigorous testing and quality control further increases
operational expenses. Manufacturers are also facing higher labor costs as
specialized skills and technologies become more integral to the production
process. As defense budgets in the region grow, the demand for high-performance
ammunition intensifies, but the rising production costs present a challenge for
maintaining profitability. With limited cost flexibility, some manufacturers
may struggle to balance the need for innovation and high-quality ammunition
with the pressure of cost control. These rising production costs could
potentially impact the affordability, availability, and overall competitiveness
of large caliber ammunition in the Asia-Pacific market.
Supply
Chain Disruptions
Supply chain disruptions are a significant challenge
for the Asia-Pacific large caliber ammunition market. The production of large
caliber ammunition relies on a wide range of raw materials, including metals
like brass, steel, and aluminum, as well as specialized components for
precision-guided systems. Disruptions in the supply of these materials—due to
factors like geopolitical tensions, trade restrictions, and global
shortages—can lead to delays in production and increased costs.
Also, logistical challenges, such as transportation
bottlenecks, port congestion, and fuel price volatility, exacerbate the issue,
further hindering the timely delivery of ammunition to military forces. The
COVID-19 pandemic, for instance, disrupted global supply chains and
demonstrated the vulnerabilities of relying on global sourcing for critical
materials. As demand for large caliber ammunition increases in the Asia-Pacific
region, particularly from countries like China and India, manufacturers face
the challenge of ensuring a steady supply of materials. This issue can affect
manufacturers' ability to meet defense demands, impacting both production
schedules and military preparedness. Also, supply chain disruptions can limit
the flexibility of manufacturers to adapt quickly to shifting geopolitical
dynamics and military priorities, ultimately hindering the growth of the large
caliber ammunition market in the region.
Key Market Trends
Increasing
Demand for Precision-Guided Munitions
Increasing demand for precision-guided munitions
(PGMs) is a notable trend in the Asia-Pacific large caliber ammunition market.
As regional military forces focus on enhancing operational efficiency and
minimizing collateral damage, the demand for PGMs is growing. These advanced
munitions, equipped with guidance systems such as GPS, laser, or infrared,
offer precise targeting capabilities that improve accuracy and reduce the risk
of unintended damage, making them especially valuable in modern warfare
scenarios.
Countries in the Asia-Pacific region, particularly
China, India, and Japan, are prioritizing the development and acquisition of
PGMs as part of their military modernization strategies. Precision-guided
rounds are essential for high-value, long-range targets, as well as for
countering asymmetrical threats, such as insurgents or non-state actors, who
may be hiding within civilian infrastructure. In addition to improving
battlefield effectiveness, PGMs offer the ability to strike specific targets
with minimal expenditure of resources, making them an efficient choice for
defense forces aiming to maximize operational impact. The continued evolution
of PGMs, including enhancements in guidance systems and warhead designs, is
expected to further drive their adoption in the region. As Asia-Pacific
countries expand their military capabilities, the demand for precision-guided
large caliber ammunition is likely to rise, shaping the future of the market.
Advancements
In Ammunition Technology
Advancements in ammunition technology are a key trend
shaping the Asia-Pacific large caliber ammunition market. As military forces in
the region modernize and seek more effective solutions for complex combat
scenarios, innovations in ammunition technology are becoming increasingly
vital. This includes the development of high-tech, high-performance rounds that
offer enhanced accuracy, power, and versatility.
One notable advancement is the integration of
precision-guided technology into large caliber ammunition, improving target
accuracy and reducing collateral damage. These rounds often utilize GPS, laser,
or infrared guidance systems, making them suitable for precision strikes
against strategic targets, even at long ranges. Also, advancements in material
science have led to the creation of lighter, more durable, and environmentally
friendly ammunition. New materials for casings, propellants, and projectiles
not only improve performance but also reduce the environmental impact of
ammunition production and use. Another area of progress is the development of
smart ammunition systems that provide real-time data on ammunition status,
helping optimize usage and logistics. These innovations are particularly
important for countries in the Asia-Pacific region that face rising security
challenges and need to maximize the efficiency and effectiveness of their
defense resources. Overall, advancements in ammunition technology are enhancing
the capabilities of large caliber munitions and driving continued growth in the
Asia-Pacific market.
Integration
Of Smart Ammunition Systems
The integration of smart ammunition systems is a
growing trend in the Asia-Pacific large caliber ammunition market. Smart
ammunition refers to rounds equipped with embedded sensors, tracking systems,
or communication capabilities that provide real-time data on their status,
performance, and location. These systems enhance battlefield efficiency by
optimizing ammunition usage, improving targeting accuracy, and streamlining
logistical operations. Smart ammunition can offer features such as programmable
fuses, which allow projectiles to detonate at a specific time or under certain
conditions, increasing the effectiveness of a strike. Also, the use of
telemetry data enables better post-launch analysis and feedback, helping
military forces adjust tactics and enhance operational success.
The rising demand for smart ammunition is driven by
the need for more precise, adaptable, and efficient weaponry, particularly in
complex combat environments. These systems are valuable for targeting
high-value assets and conducting precise strikes with minimal collateral
damage. They also enable better resource management by providing real-time
information on ammunition consumption and readiness. Countries in the
Asia-Pacific region, especially China, India, and Japan, are increasingly
investing in smart ammunition as part of their military modernization efforts.
This trend is expected to accelerate as defense forces look for ways to enhance
combat effectiveness and reduce operational risks, positioning smart ammunition
as a key technology in the future of large caliber munitions.
Segmental Insights
Caliber
Type Insights
Above 60mm dominated the Asia-Pacific Large Caliber
Ammunition market due to its widespread use in artillery, mortars, and naval
systems. These rounds provide superior firepower and are essential for both
long-range and heavy-duty combat operations. Countries in the region,
particularly China, India, and Japan, heavily rely on larger calibers for
defense strategies, including countering strategic targets and ensuring
battlefield superiority. The advanced capabilities of above 60mm ammunition,
such as precision targeting and enhanced destructive power, make it crucial for
modern military forces. As defense budgets rise across the Asia-Pacific, demand
for these larger caliber munitions continues to grow.
![Asia-Pacific Large Caliber Ammunition Market](https:\\www.techsciresearch.com\admin\gall_content\2025\1\2025_1$image_24_Jan_2025_175935897Asia-Pacific Large Caliber Ammunition Market 2.webp)
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Country Insights
China dominated the Asia-Pacific Large Caliber
Ammunition market, due to its significant defense spending and ongoing military
modernization. As the largest military power in the region, China invests
heavily in upgrading its weaponry, including advanced artillery, tanks, and
naval systems, all of which require large caliber ammunition. The country’s
strategic focus on enhancing its long-range strike capabilities and bolstering
national defense capabilities drives the demand for these munitions. Also,
China’s growing military presence in the Asia-Pacific, particularly in areas
like the South China Sea, further fuels the need for advanced large caliber
ammunition, ensuring its market dominance.
Recent Developments
- In February 2024,
Adani Defence and Aerospace inaugurated South Asia's
largest munitions plant in Kanpur. UP Chief Minister Yogi Adityanath unveiled
the Adani Ammunition Complex, the first part of the state's military corridor.
The Chief Minister also virtually launched the Adani Missiles Complex in
Hyderabad. The 500-hectare factory in Kanpur area will produce weaponry,
ammunition, rockets, and artillery shells.
- In February 2024, The
Indian Institute of Technology Madras has cooperated with Munitions India, a
defence public-sector firm, to create 155mm smart munitions. The goal is to make the ammunition 50% more
accurate than conventional shells while also increasing range. The shells will
have a circular error probability (CEP) of 10 meters. The ammunitions developed
now in India have a CEP of 500 meters.
- In July 2024, Adani
Defence & Aerospace has partnered with Thales Belgium to produce and
assemble NATO-standard 70mm calibre ammunition, increasing India's defense
production self-sufficiency. The second phase of the construction of a 500-acre
plant in Kanpur, Uttar Pradesh, includes the production of medium-calibre
ammunition for India's attack helicopters. The factory is South Asia's largest
integrated munitions production facility.
Key Market Players
- Northrop
Grumman
- Rheinmetall
AG
- Inductotherm
Industries (Shanghai) Ltd
- Radyne
Corporation
- General
Dynamics Ordnance & Tactical Systems Inc
- Saab
AB
- Denel
Pretoria Metal Pressings (PMP)
- BAE
Systems
- Singapore
Technologies Engineering Ltd
- Global
Ordnance (GO)
By Caliber Type
|
By End User
|
By Country
|
|
- Naval Forces
- Ground Forces
|
- China
- Japan
- India
- Indonesia
- Thailand
- Australia
- South Korea
|
Report Scope:
In this report, the Asia-Pacific Large Caliber
Ammunition Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Asia-Pacific Large Caliber Ammunition
Market, By
Caliber Type:
o 40-60mm
o Above 60mm
- Asia-Pacific Large Caliber
Ammunition Market, By
End User:
o Naval Forces
o Ground Forces
- Asia-Pacific Large Caliber
Ammunition Market, By Country:
§ China
§ Japan
§ India
§ Indonesia
§ Thailand
§ Australia
§ South Korea
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Asia-Pacific Large Caliber Ammunition Market.
Available Customizations:
Asia-Pacific Large Caliber Ammunition Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
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