Small Arms Market Size, Share, and Industry Analysis, By Type (Handgun, Rifles, Shotgun), By Application (Defense and Homeland Security, Self-Defense, Sports, Hunting, Law Enforcement), and Regional Forecast, 2024-2032

The global small arms market size was valued at USD 9.07 billion in 2023 and is projected to grow from USD 9.46 billion in 2024 to USD 12.32 billion by 2032, exhibiting a CAGR of 3.35% during the forecast period. North America dominated the small arms market with a market share of 43.33% in 2023.

Since the end of the Cold War, the small arms market has gotten a lot of interest from defense, homeland security, and law enforcement agencies worldwide. Little arms have, as of late, been viewed as the capital of psychological oppressor and non-state entertainer gatherings, no matter the arms exchange. Individuals utilize small weapons for military, paramilitary, hunting, and sports activities. Steel is used to make firearms, with Bakelite and wood used for some parts. Metal is being phased out in favor of polymers, which can remove weapon marks quickly.

According to market research, key manufacturers have adopted new technologies, such as modular design and micro-stamping processes. Now, thanks to the modular weapon design, it is possible to install weapon equipment. Increased terrorist activities, armed conflicts, and cross-border conflicts are expected to boost market expansion during the forecast period. The growth of shooting ranges and hunting activities also contributes to the growth of the industry.

Arms manufacturers are continuing to modernize their weapons. There is an increase in innovation in the weaponry industry. Small arms are made from lighter materials and are more resilient and harder to damage. 3D printing has brought an alarming prospect of printing a gun without using metal. Ammunition is being developed to pierce body armor and cause maximum damage to victims. Weapons manufacturers seemed determined to create more precise weapons, which is driving the market growth.

Increased security concerns amid the COVID-19 pandemic fueled the expansion of the market globally. Despite the pandemic, the market showed significant growth in 2020 and is projected to continue growing during the forecast period.

The demand for small guns for civil and commercial purposes had a significant impact on some countries. Nonetheless, during the COVID-19 outbreak, there was a heightened demand for small firearms for self-defense purposes, particularly in the U.S. in 2020.

RUSSIAN/UKRAINE WAR IMPACT

The conflict between Russia and Ukraine prompted increased armored vehicle use across Europe, particularly among NATO members. The armed defense forces deployed with various small weapons for war action and border defense.

As the globe recovers from the devastating COVID-19 coronavirus pandemic, which saw all economies plummet, Russia's invasion of Ukraine has handed a lifeline to the U.S., European, and other weapons makers worldwide.

As the globe reverts to a 21st-century Cold War with considerably more modern nuclear armament, the U.S. and NATO states have been rebuilding their military for deployment along Russia's borders and strengthening their operational capabilities. In a historic first, the European Union (EU) has also agreed to buy weapons and transfer them to Ukraine, significantly boosting the global small arms market growth.

Small Arms Market Trends

Introduction of 3D Printing Technology to Boost Market Growth

3D printing technology is being used more in weapon production. Metal laser sintering and fused deposition modeling provide several advantages for small weapon development. It conserves resources when crafting weapons, enables quicker development and layout, enhances effectiveness, and allows extensive personalization. The skewed ratio of price to value for 3D-printed weapons is one of the primary advantages and prevailing market trends.

Increasing Demand for Smart Guns and Growing Use of Polymers to Propel Market Growth

Several companies are working on intelligent weapons to improve operational accuracy, efficiency, and dependability. Fingerprint readers, radio frequency identification chips, biometric sensors, and other modern technologies are used to prevent unauthorized users from using smart firearms. Since only authorized individuals employ sophisticated firearms, they aid in preventing unlawful conduct and armed conflict. Biometric sensors activate the pistol when they detect a fingerprint, grip, or palm print. There will be an increase in demand for smart firearms due to enhanced features, such as quick access, fingerprint authentication, long battery life, and others in the future.

Small Arms Market Growth Factors

Rising Modernized Weapon Innovations to Propel Market Progress

The nature of warfare has changed from traditional to modern combat. Further, the size of armies in different locations has evolved, alongside weapons. The demand for more efficient technologies such as weaponized robots, weaponized vehicles, light weapons, and unmanned ground vehicles with increased warfare effectiveness is driving the market’s progress. Machine guns capable of firing 5.56mm rounds at a cyclic rate of 750 rounds per minute are used. It is also equipped with M240 guns, which have a 1,000 rounds per minute cyclic fire rate. For instance, True Velocity, a renowned arms and ammunition producer in the U.S., is developing 6.8mm ammunition to replace the 5.56mm NATO rounds in some special operations forces. The new caliber is supposed to be slightly heavier and faster than NATO 5.56mm rounds, allowing troops to fire from a longer range and with more precision.

The U.S. military is also hunting for a high-tech weapon that can shoot 6.8mm ammo. The U.S. has chosen General Dynamics Corporation, Textron Systems, and SIG SAUER for advanced firearm manufacture, but FN-America and PCP Tactical have been denied. India, a significant defense spender, is replacing 5.56mm weaponry and ammo with more lethal 7.62mm weapons and ammunition. Small-caliber ammunition is in high demand due to these causes.

Increasing Demand for Small Weapons from Civilians to Aid Growth

Handguns and shotguns are mostly utilized for commercial objectives, including personal safety, sports, and hunting. The market's enlargement will be assisted by rising civilian demand for handguns, rifles, and shotguns, thus driving the market’s growth. According to the 2017 small arms survey, with over one billion weapons globally, there are 85% (857 million) weapons in civilian hands. The industry is growing due to increased shooting ranges and personal security concerns. Due to the COVID-19 pandemic, gun purchases in the U.S. spiked in March 2020, owing to an unforeseen fear of safety and security among citizens. This factor may bolster the global market growth.

RESTRAINING FACTORS

Small Arms Purchase is governed by Various Causes such as Economic, Legal, and Political Rules

Arms, ammunition, and other fighting equipment are regulated differently in different countries due to differences in economic, legal, and political frameworks. This factor is one of the most significant fundamentals influencing domestic and international competitors in the small weapons market. Compliance failures damage sales, revenues, and profit margins and may even bring administrative and criminal action; thus, these players are expected to comply with the rules and principles of their home nations and foreign governments. Several countries' contracting and procurement processes are frequently impacted by regulations.

Import-export controls, technology transfers, and anti-corruption laws are examples of regulations that vary by country. Non-compliance with these standards could significantly impact market participants' activities, lowering market revenue globally. The evolution of the small arms market is hampered by differences in rules between countries, which are influenced by economic, legal, and political considerations.

Small Arms Market Segmentation Analysis

By Type Analysis

Handgun Segment Held the Largest Market Share Due to Surge in Demand for Handguns 

The small arms market is divided based on type into handgun, shotgun, and rifles.

Due to increasing demand for pistols and revolvers for personal safety, hunting, shooting sports, and other activities, the handgun segment held the largest global market share in 2023. During the projection period, increased security concerns due to political turmoil, cross-border conflicts, and other factors would surge the demand for handguns.

The rifles segment is anticipated to be the second fastest in the market's growth due to increasing procurement of advanced rifles for military and homeland security personnel. For instance, following PLR Systems Ltd (PLR), a joint venture between Adani Group and Israel Weapon Industries, SSS Defense, the second private sector company in India, will commence manufacturing and testing arms for the domestic foreign markets at its new plant in Bengaluru (IWI).

By Application Analysis

Defense & Homeland Security Segment to Lead the Market with a Significant Share due to Modernization of Defense Forces Across Globe

The market is classified into defense & homeland security, self-defense, sports, hunting, and law enforcement.

Due to technical advancements in combat operations and increased defense expenditure globally, the defense & homeland security segment is anticipated to have the major market share and maintain its dominance during the projection period. In addition, due to military modernization plans and year-on-year increases in defense expenditure, the defense area has had notably moderate market development. Increased terrorism, cross-border conflicts, and the changing character of combat have led to the modernization of defense forces worldwide by acquiring new weapons. For instance, in March 2019, the Indian Defense Ministry approved a request for a contemporary, state-of-the-art Light Machine Gun (LMG) for the armed forces.

Due to an increasing sense of fear worldwide, self-defense has seen tremendous market growth amid the continuing COVID-19 epidemic. In particular, the market for self-defense has seen more than a moderate increase. Due to rising personal security concerns and increased demand for hunting, the hunting segment is expected to have an average gain. Additionally, due to the modernization of law enforcement agencies and their utility in combating modern urban terrorism worldwide, the law enforcement segment is projected to reach a large rate.

REGIONAL INSIGHTS

The market has been divided into North America, Europe, Asia Pacific, and the Rest of the World.

North America has the largest market share globally during the forecast period. The high defense budget, large number of shooting ranges in the U.S. and Canada, and the procurement of new weaponry for combat operations contribute to the growth. For instance, the U.S. Department of Defense awarded F.N. America a USD 119 million contract to supply more than 167,000 M4 and M4A1 rifles over five years in February 2020. The U.S. Army Contracting Command awarded Hecker & Koch a USD 33 million contract in March 2020 to procure Compact Semi-Automatic Sniper Systems and Squad Designated Marksman Rifles. The Canadian Department of National Defense granted Colt Canada, a subsidiary of Colt's Manufacturing Company LLC, a contract in May 2020 to supply 272 new C20 rifles.

During the projection period, the Asia Pacific market would experience significant expansion. Increasing cross-border conflicts and terrorist activities across Asia are driving the market's growth. The market is developing due to rising defense spending and military modernization plans in South Korea, Australia, China, and India. According to small arms survey data, India and China have 71 million and 49 million civilian weapons, respectively. The Defense Ministry of India's recent acquisition and modernization policies in the market have boosted the Asia Pacific market through contracts and technology transfers.

The European market is expected to increase at a moderate rate. In addition, companies such as Fabbrica d'Armi Pietro Beretta S.p.A., Heckler & Koch GmbH, Thales Group, and others are driving market expansion in Europe.

The rest of the world is anticipated to grow in the forecast period. Due to increased military investment and innovative items for civilian purposes, the Middle East & Africa and Latin America will experience moderate development. Due to increased political disputes and defense spending, the rest of the world is growing rapidly.

List of Key Companies in Small Arms Market

The introduction of innovative technologies, such as biometric sensors, Radio Frequency Identification (RFID), smart weapons, and others, and the development of small arms using polymer material are some of the market's impending developments. The dominance of key market players such as Kalashnikov Group, Smith & Wesson Brands Inc., Sturm, Ruger & Co. Inc., and Glock Ges.m.b.H. is attributed to a diverse product portfolio, rising R&D spending, and increased focus on mergers and acquisitions.

LIST OF KEY COMPANIES PROFILED

• Kalashnikov Group (Russia)


• Smith & Wesson Brands Inc. (U.S.)


• Sturm, Ruger & Co., Inc. (U.S.)


• Heckler & Koch GmbH (Germany)


• American Outdoor Brands Corporation (U.S.)


• Glock Ges.m.b.H. (Austria)


• Remington Arms Compant LLC (U.S.)


• Colts Manufacturing LLC (U.S.)


• FN Herstal (Belgium)


• Israel Weapons Industries (Israel)

KEY INDUSTRY DEVELOPMENTS

• November 2023 – The Belgian government approved the establishment of a long-term strategic partnership between Belgian Defence and FN Herstal. The partnership is a component of the DIRS* and the policies implemented by the Belgian federal government and Ludivine Dedonder, Minister of Defence, since 2020. The partnership contributes to the objectives of strategic autonomy and supply security for the European Union and NATO. Particularly, it aims to guarantee the provision of ammunition of small caliber and ensure the operational condition of the Belgian army's fleet of small arms for 20 years. The partnership is also a multilateral arrangement that is accessible to other European nations, enabling them to fulfill their long-term ammunition requirements.


• May 2023 – Israel Weapon Industries announced the signing of a Transfer of Technology and Knowledge agreement with FAME, under which both companies will establish an assembly and production line in Peru for the ARAD family of assault rifles. Under the terms of the agreement, IWI will provide FAME with technological knowledge regarding small arms assembly, advanced quality assurance, and maintenance processes. IWI will provide FAME with technological knowledge regarding small arms assembly, advanced quality assurance, and maintenance processes. These companies are also considering extending production to include additional weapons and relevant optical sights for the nation's defense and security forces.


• April 2023 – The Pickens County Council approved a tax-exemption agreement for FN America, which is located at the edge of the business park that will house the USD 33 million small arms manufacturing facility. The company expects to break ground next year and start operations in 2025, bringing about 175 new jobs in the following five years.


• November 2022 – Colt's Manufacturing Co. LLC, one of the oldest and most revered small arms manufacturers in the United States, entered into a partnership with a company based in Jordan to produce handguns and rifles in the kingdom jointly. This collaboration is anticipated to play a pivotal role in the efforts of the Jordan Design and Development Bureau to establish a sustainable and self-sufficient defense industries sector in the Hashemite Kingdom of Jordan by facilitating the localization of defense product manufacturing.


• April 2022 – The U.S. Army selected next-generation squad weapon rifles and machine gun variants; they need 6.8mm ammunition. The army ultimately plans to buy 107000 M5 rifles and 13000 M250 machine guns from Sig Sauer. The contract was awarded worth USD 4.7 billion to produce weapons and 6.8mm ammunition for the next several years.


• April 2022 – The Indian Defense Ministry has procurement plan for small arms worth USD 3,595.09 million. In this procurement plan, Adani Defense and Kalyani group are likely to be among the major bidders for carbine.


• May 2022 – The Spanish Armed Force has been awarded a contract to leading systems supplier Rheinmetall’s Group’s South African subsidiary Rheinmetall Denel Munition to supply 40mm weapon and ammunition systems. The company provides the supply for 40mm X 53 high velocity combat as well as training ammunition. The first ammunition deliveries will start in 2022.

Report Coverage

The research report provides qualitative and quantitative insights into the market, and a complete analysis of market size and growth rate for all segments. The report also includes an in-depth look at market dynamics, emerging trends, and competitive landscape. The adoption trends by individual segments, recent industry developments, such as partnerships, mergers, and acquisitions, consolidated SWOT analysis of key players, Porter's five forces analysis, leading business strategies of market players, and key industry trends are among the key insights offered in the report.

Report Scope & Segmentation