Consolidated Region 30MM Ammunition Market Size, Share, COVID-19 & Russia-Ukraine War Impact Analysis, By Weapon Type (Autocannon, Rotary Cannon, Naval Gun, Anti-material Gun, Anti-aircraft Gun, and Others), By Ammunition Type (High Explosive Incendiary (HEI), High Explosive Incendiary - Tracer (HEI-T), High Explosive Incendiary/Tracer - Self Destruct (HEI/T - S.D.), Semi-armor Piercing High Explosive Incendiary - Tracer/Self Destruct, and Others), By Platform (Airborne, Naval, and Land), and Regional Forecasts, 2022-2029

The consolidated region 30MM ammunition market size was valued at USD 1.72 billion in 2021. The market is projected to grow from USD 1.87 billion in 2022 to USD 2.51 billion by 2029, exhibiting a CAGR of 4.87% during the forecast period. North America dominated the consolidated region 30mm ammunition market with a market share of 65.7% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with 30MM ammunition experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, this market exhibited a rise of 4.29% in 2020 as compared to 2019.

Rise in terrorist activities, geopolitical tensions, and hostilities across regions are likely to surge the procurement of defense equipment by prominent militaries and law enforcement agencies. This impact will hit the consolidated region 30MM ammunition market growth over the forecast period. Moreover, technological advancements in the market have introduced next-generation munitions for all military platforms, such as air, naval, and land, to protect against all threats, propelling the market growth during the forecast period.

COVID-19 IMPACT

Lockdown Restrictions Led to Shutdown of Manufacturing Operations Affecting Market Growth

Consequently, several organizations began work form programs, and some enterprises started production with half of the employees as safety measures. Moreover, nationwide lockdowns led the 30MM ammunition manufacturers to partially or entirely shut their operations.

The COVID-19 pandemic has considerably influenced the military as numerous military training & exercises have been canceled. Armed forces have been mobilized to combat this pandemic in many nations, and this will influence defense procurement priorities later and may cancel military operations overseas. The financial disaster that has emerged as a result of the battle against COVID-19 will directly affect the causes of defense procurement of numerous nations' defense budgets, which will be reduced as there will be no importance for the supply of military equipment to the armed forces.

Despite the impact of COVID-19, European Union countries spent a record of €198 billion (USD 242.9 billion) on the defense sector in 2020. According to Bloc’s Defense Agency report, the European collaborative defense expenditure dropped to by USD 5.3 billion in 2020.

RUSSIA-UKRAINE WAR IMPACT

Rising Border Security Issues in Russia and Ukraine will Facilitate the Product Demand

In the ongoing war between Ukraine and Russia, many countries dependent on Russia and Ukraine for defense supplies have started focusing on self-reliance in defense. As the Russian-Ukraine war changes, the world is under the influence of a new wave of accelerating defense spending. However, these conflicts can have a more significant impact than the military budget. It can also catalyze changes in procurement priorities.

The Russian-Ukraine war has also changed the balance of defense procurement, and the defense needs to prepare for that change. However, developed and developing countries such as the U.S., the U.K., Germany, and China witnessed increased military expenditure in 2021. For instance, according to an analysis by the Stockholm International Peace Research Institute (SIPRI), the consolidated regional military spending increased by 2.6% and reached a value of USD 1981 million in 2021.

For instance, in May 2018, General Dynamics Corporation awarded a fixed-price contract worth around USD 1.4 million to deliver 30 MM ammunition to an undisclosed buyer. The delivery was completed in June 2021. Further, in May 2021, General Dynamics Corporation won the firm's fixed price contract worth USD 6.1 million to deliver 30MM ammunition. The buyer is undisclosed, and the total delivery will be completed in February 2023.

LATEST TRENDS

High Adoption Rates and Development of Air Bursting Munitions (ABM) to Drive Market Trends During the Forecast Period

According to NATO Medium Caliber Gun Ammunition Effectiveness Studies, medium caliber munition is traditionally utilized across the land, airborne, or naval platforms. Conventionally, medium caliber munitions use single penetrator or fragmentation projectiles. In contrast, Air Bursting Munitions (ABM) facilitate a similar overall damage pattern with preset initiation compared to Penetrators with Enhanced Lateral Efficiency (PELE) or fragmentation munitions.

In June 2022, Rheinmetall AG announced that it is developing new medium caliber ammunition for the U.S. Navy, which will be supplied by American Rheinmetall Munitions Inc., which had been awarded a contract worth USD 14.3 million under the U.S. Navy Other Transactions Agreement (OTA). The contract is critical to the U.S. Navy, as it intends to cost-effective engagement capability enhancement of existing and future naval gun weapon systems in surface-to-air and surface-to-surface threats.

The Rheinmetall prototype will undergo an Initial Operational Clearance for 30MMx173 MK 340 MOD 0 KEET (Kinetic Energy Electronically Timed) airburst munitions, a derivative of NATO-qualified Rheinmetall 30MMx173 KETF (Kinetic Energy Timed Fuze) munition.

The 30MMx173 KETF is utilized by European NATO Armed Forces such as the Australian Armed Forces, German Armed Forces, and Hungarian Armed Forces. The munition will facilitate a significant increase in lethality and reduction in munitions utilized by the target owing to enhanced accuracy and increased first-ammunition hit probability.

DRIVING FACTORS

Increasing Defense Budgets for Military Modernization and Upgrade of Ammunition to Foster Market Growth

The rising incidence of armed national and international conflicts has driven several countries to enhance their military strength by procuring advanced ammunition and equipment. Modernization is currently undertaken across most emerging countries such as the United States, the U.K., Germany, Russia, France, and others. The medium caliber segment includes high-performance 30MM cartridges for an extensive range of applications, including sea, land, and air, with the ability to penetrate light armor, material, and personnel objectives. The growing application of armaments by prominent militaries across the region is anticipated to boost the demand for medium-caliber ammunition.

This defense expenditure for ammunition procurement and Research, Development, and Testing (RDT) activities has increased significantly across regions over the past few years. For instance, in June 2022, American defense manufacturer Rheinmetall developed a new medium caliber 30MM x 173 MK 340 MOD 0 Kinetic Energy Electronically Timed (KEET) airburst munition for the U.S. Navy. The MK 340 KEET is derived from the NATO standards.

These countries are spending significantly on military modernization programs to enhance and upgrade their self-protection capabilities and their firepower assets in lethality, range, and precision to drive the market growth.

High Demand for Conventional Ammunition Amid the Advent of Contemporary Next-generation Weapon Systems to Bolster Market Growth

According to THE U.K. MOD's Defense Equipment Plan 2021-2031, in November 2020, the Ministry of Defense awarded a 15-year munitions contract worth USD 3.28 billion to BAE Systems Land U.K. for the continuous supply and support of 39 different munitions for the U.K. Armed Forces. The 39 munitions include large-caliber tanks and artillery shells, medium-caliber ammunition, small arms, and mortars.

According to European Security & Defense Report, significant investments by market players had been made in developing 30MM Air Bursting Munitions (ABM), which are programmable munitions for maximum effect. For instance, a dual feed 30MM M.K. 30-2 ABM cannon with remote controlled turret is mounted on PSM Puma IFV, which can fire ABM or APFSDS-T (Armor Piercing Fin Stabilized Discarding Sabot – Tracer).

The ESD Report also mentions that Russian counterparts utilize 30X280MM ammunition rather than their NATO counterparts which use 30x173MM ammunition. For instance, in May 2019, MECAR developed and undertook their new 30MM APFSDS-T shell for 2A42 and 2A72 cannons.

RESTRAINING FACTORS

Technologically Advanced Contemporary Weapon Systems with Unlimited Magazine Size to Hamper the Market Growth During the Forecast Period

Armed forces worldwide are anticipated to reduce their dependence on conventional ammunition and relevant weapon systems in a phased manner during the forecast period. The development is impacted owing to the advent of technologically advanced modern weapon systems such as directed energy weapons in the development stage.

In September 2021, according to the Congressional Research Service (CRS) Report – Department of Defense (DOD) Directed Energy Weapons (DEW), directed energy weapons can destroy a vast array of electronic systems, which may include both commercial and military systems. They can disable, hinder, or destroy electronic systems under their electromagnetic cone. This factor is expected to drive market growth owing to the demand for weapon systems based on high-energy lasers and high particle beams on naval, airborne, and land platforms.

The operation, support, and maintenance of conventional kinetic ammunition-based weapon systems are time-consuming and expensive compared to the next-generation weapon systems, which don't require periodic maintenance and procurement. The procurement and maintenance costs of conventional kinetic weapons cost the government significant budgetary allocations to maintain and support current ammunition stockpiles and future scheduled deliveries.

SEGMENTATION

By Weapon Type Analysis

Increasing Army and Airforce Fleet Results in High Demand for Weapon Systems

Based on weapon type, the market is divided into autocannon, rotary cannon, naval guns, anti-material gun, anti-aircraft gun, and others.

Autocannon segment is expected to dominate the forecast period due to the rising adoption of autocannons in armored vehicles and fighter aircraft. The autocannon segment will witness significant growth during the forecast period. For instance, in August 2021, the Spanish MoD was awarded the contract to General Dynamics European Land Systems to provide 348 8×8 Dragon VCR infantry fighting vehicles. The contract's total value was USD 1.97 billion, and the delivery started in 2022 and will end in 2029. This vehicle has 30MM autoguns provided by the Spanish company Escribano.

By Ammunition Type Analysis

Increasing New Technologies in Munition to Lead to Rising Demand for Advanced Munitions

Based on ammunition type, the market is classified into High Explosive Incendiary (HEI), High Explosive Incendiary - Tracer (HEI-T), High Explosive Incendiary/Tracer - Self Destruct (HEI/T - S.D.), Semi-armor Piercing High Explosive Incendiary - Tracer/Self Destruct, and others. Further, the HEI segment is the fastest growing in the ammunition type segment.

Increasing upgrades and modernization of ammunition will lead to the market's growth during the forecast period. Hence, increasing investments in ammunition by key players and rising investment in ammunition upgrades are boosting the market's growth. Additionally, major players have established contracts or MoUs with developing economics to supply 30MM ammunition to armed forces. For instance, in July 2022, the U.S. Navy awarded a contract to Rheinmetall AG to create a new high-performing medium caliber 30MM X 173 Airburst munition against naval threat protection.

By Platform Analysis

Cross Border Terrorism & Conflicts to Drive the Growth of Airborne Segment

By platform, the market has been divided into airborne, naval, and land. The airborne segment is the leading segment among platforms.

Increasing border conflicts and international terrorism threats have strengthened the armed forces in different platforms for multiple threat protections. The emerging economic countries have increased their government budgets to acquire a new and upgraded fleet of platforms such as armed land, air, and naval forces. For instance, in April 2022, Estonia's defense forces procured 220 wheeled armored vehicles worth around USD 197.44 million. No specific potential manufacturer has been named for the new procurement. The delivery of specified types of vehicles will be completed by the end of 2024.

REGIONAL INSIGHTS

The consolidated region 30MM ammunition market is studied across North America and Europe.

North America dominated the market in 2021. The U.S. had the highest defense budget in 2021. The rise in the adoption of next-generation weapon systems and R&D on advanced ammunition by key regional manufacturers are anticipated to fuel the market growth in North America. Moreover, increasing the federal budget for military procurement plans for all military platforms, such as air, sea, and land, is leading to market growth during the forecast period.

The market in Europe is predicted to grow during the estimated period. The increasing adoption of weapons systems in land-based platforms for various threat protection applications across several countries, such as Germany, France, Russia, Spain, and the U.K., is projected to support the market growth in Europe in the upcoming years.

KEY INDUSTRY PLAYERS

Diversified Product Portfolio Offered by Key Market Players to Offer Competitive Edge

The market's competition landscape depicts the domination of top players such as Elbit System Ltd., BAE System PLC., Northrop Grumman Corporation, Poongsan Corporation, Rheinmetall AG, and others. Key players focus on growing investment in research and development, a diversified product portfolio of 30MM ammunition, and strategic acquisition. The key market players focus on business expansion strategies such as agreements, mergers and acquisitions, product-folio expansion, and long-term contracts with multinational companies included in this market.

LIST OF KEY COMPANIES PROFILED:

• BAE Systems Plc (U.K.)


• CBC - COMPANHIA BRASILEIRA DE CARTUCHOS (Brazil)


• Denel SOC Ltd. (South Africa)


• Elbit Systems Ltd. (Israel)


• General Dynamics Corporation (U.S.)


• KNDS N.V. (Krauss-Maffei Wegmann + Nexter Defense Systems N.V.) (Netherlands)


• MSM Group s.r.o. (Slovak Republic)


• Nammo A.S. (Norway)


• Northrop Grumman Corporation (U.S.)


• Poongsan Corporation (Korea)


• Rheinmetall AG (Germany)


• Thales Group (France)

KEY INDUSTRY DEVELOPMENT 

• March 2022: French government-owned weapons manufacturer Nexter Munitions and Indonesia's PT Pindad signed a Memorandum of Understanding (MOU) contract associated with Medium Caliber Munitions and Large Caliber Munitions. Under the MOU, Medium Caliber Munition and Large Caliber Munition products such as 120MM, 105MM, 20MM, and 30MM ammunition for the Rafale multirole combat aircraft.


• July 2020: the U.S. Army has awarded a contract to Northrop Grumman under the project called Project Manager for Maneuver Ammunition Systems (PM-MAS) to develop and manufacture the next generation Airbrust Cartridge for the 30MM X M813 Bushmaster and Chain Gun. Furthermore, this XM813 and Bushmaster Chain Gun required the same 30x173MM cannon combined on air, land, and naval platforms across the globe.


• September 2020: the German PSM PUMA Armored Infantry Fighting Vehicle (AIFV) is now in service in increasing numbers, with the German Army having the first contract for 350 units. PSM PUMA is fitted with a remote control armed with a Mauser 30MM M.K. 30-2 dual feed cannon. This dual-feed cannon is capable of firing airburst ammunition.

• August 2019: the U.S. Army awarded Northrop Grumman Corporation a contract to manufacture 30mm tactical and training ammunition. Under this contract, the company will deliver 30x173mm PGU 46/B HEI rounds to the U.S. Army. The total value of the agreement was USD 24.8 million.


• February 2018: Thales launched a new variant of the Bushmaster MR6 (Multi Role 6) armored vehicle. This version is an improved variant of the Bushmaster infantry mobility vehicle. Bushmaster MR6 has various new upgrades, including the new system of 30MM cannon and a 40MM automatic grenade launcher.

REPORT COVERAGE

The consolidated region 30MM ammunition market research report delivers a detailed analysis of the market and emphases key aspects such as key players, offerings, objects, and end-user of 30MM ammunition. Moreover, the report deals with insights into market trends, competitive landscape, market competition, product pricing, regional analysis, market players, competition landscape, and the market status and highlights key industry growths. In addition, to the factors stated above, the report encompasses several direct and indirect influences that have subsidized the sizing of the market in recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
Segmentation	By Weapon Type Autocannon Rotary Cannon Naval Gun Anti-material Gun Anti-aircraft Gun Others
By Ammunition Type High Explosive Incendiary (HEI) High Explosive Incendiary - Tracer (HEI-T) High Explosive Incendiary/Tracer - Self Destruct (HEI/T - S.D.) Semi-armor Piercing High Explosive Incendiary - Tracer/Self Destruct Others
By Platform Airborne Naval Land
By Geography North America (By Weapon Type, By Ammunition Type, By Platform, and By Country) U.S. (By Platform) Canada (By Platform) Europe (By Weapon Type, By Ammunition Type, By Platform, and By Country) U.K. (By Platform) Germany (By Platform) France (By Platform) Russia (By Platform) Italy (By Platform) Spain (By Platform) Rest of Europe (By Platform)