Big Market Research : Global Military Ammunition Market 2013–2023

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The Global Military Ammunition Market 20132023
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Report Description
This report is the result of SDIs extensive
market and company research covering the global
military ammunition industry. It provides
detailed analysis of both historic and forecast
global industry values, factors influencing
demand, the challenges faced by industry
participants, analysis of the leading companies
in the industry, and key news. To Get More
Details _at_ http//www.bigmarketresearch.com/the-glo
bal-military-ammunition-20132023-market Why was
the report written? The Global Military
Ammunition Market 20132023 offers the reader
detailed analysis of the global military
ammunition market over the next ten years,
alongside potential market opportunities to enter
the industry, using detailed market size
forecasts. What makes this report unique and
essential to read? The Global Military
Ammunition Market 20132023 provides detailed
analysis of the current industry size and growth
expectations from 2013 to 2023, including
highlights of key growth stimulators. It also
benchmarks the industry against key global
markets and provides detailed understanding of
emerging opportunities in specific areas.
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Report Description
What are the key drivers behind recent market
changes? Numerous countries in the world are
currently involved in conflicts with their
neighboring nations owing to reasons such as
territorial disputes and terrorism. This
situation is most commonly evident in the Asia
Pacific region due to the rapid economic and
military development among countries such as
China, India, Japan, South Korea and North Korea
among others. All the above mentioned countries
are making rapid efforts in order to strengthen
their military forces in order to be battle ready
and thus involved in an arms race. And, battle
readiness demands possessing adequate ammunition
of various kinds including small caliber,
artillery, mortar, large caliber and medium
caliber. For example, India and Pakistan share
tense relations owing to the territorial disputes
between each other, as well as cross-border
terrorism. The countries militaries are involved
in frequent cross-border firing despite their
ceasefire agreement signed a decade ago. China
and South Korea too share hostile relations owing
to the Chinese governments intentions to reunite
both the countries which are strongly opposed by
the latter nation. Thus, South Korea is also
making significant efforts in order to defend the
Chinese military power when needed, though with
the support of its allies such as the US.
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Scope
The report provides detailed analysis of the
market for military ammunition during 20132023,
including the factors that influence why
countries are investing or cutting expenditure on
military ammunition. It provides detailed
expectations of growth rates and projected total
expenditure. The global ammunition industry is
expected to witness a steady rise in the number
of joint ventures and strategic alliances during
the forecast period, due to the insufficient
indigenous manufacturing capabilities of numerous
countries such as the US, India, and Brazil.
These countries are dependent on foreign
ammunition manufacturers in order to meet demand
and develop indigenous ammunition manufacturing
capabilities. Some recent notable joint ventures
are mentioned below By the end of 2013,
Russia and India are expected to establish a
joint venture to manufacture ammunition for the
Smerch multiple launch rocket system in India.
The Russian firms Rosoboronexport and OAO NPO
Splav are expected to form a joint venture with
the artillery production department of the Indian
defense ministry in order to produce, as well as
provide after sales support to, the specified
ammunition in India.
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Scope
In April 2012, General Dynamics Ordnance and
Tactical Systems and Rheinmetall Defense
announced the formation ofa joint venture called
Defense Munitions International, LLC in order to
develop and market the new and existing kinetic
energy and multi-purpose cartridges, which are
elements of tank ammunition. The JV intends to
market these products in the US as well as
international markets. In January 2012, BAE
Systems and Olin Winchester announced that they
have formed a joint venture called US Munitions,
LLC in the US. The joint venture was formed with
an aim to undertake the contract awarded by the
US DoD to manage, operate and maintain its Lake
City Army Ammunition Plant till 2022. The
contract is worth US8.4 billion. Report
Enquiry _at_ http//www.bigmarketresearch.com/report-
enquiry/112425
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Reason To Buy
Reducing the weight of ammunition without
compromising combat performance is a key
challenge for the military ammunition industry.
The modernization of soldier systems to protect
and empower the soldier has resulted in an
exponential increase in the total weight being
carried. The combined weight of equipment
prevents them from being agile, mobile, and
effective war fighters, and the lives of soldiers
are being put at risk as heavy life saving
equipment is often being left behind. Defense
agencies worldwide are focusing on sourcing and
integrating the most affordable, lightweight
soldier equipment and technology to reduce the
burden to personnel. For example, the US
Department of Defense Ordnance Technology
Consortium awarded a US2.05 million contract to
AAI's Lightweight Small Arms Technologies (LSAT)
team, part of Textron Systems to innovate both
its caseless and cased telescoped lightweight
ammunition and weapon technologies. The contract
includes refining the 5.56mm Cased Telescoped
ammunition and Light Machine Gun in support of an
Army live fire experiment development, testing
and characterization of prototype 5.56mm Caseless
ammunition and extending Cased Telescoped
ammunition technologies to a 7.62mm cartridge.
The US Army Armament Research, Development and
Engineering Center (ARDEC) and the Department of
the Navy's Office of Naval Research are jointly
participating in this program.
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Reason To Buy
Recent years have witnessed an increase in
shortage of skilled laborers globally, mainly due
to growing orders from the defense ministries for
ammunition. There is a scarcity of technically
skilled workers in firearms industry and the
companies catering to ammunition needs of the
militaries are ready to recruit more workers if
they get in order to reduce their order backlogs.
Skilled laborers were already scarce in the past
in the arms and ammunition industry and the big
ammunition programs announced by some countries
recently have further caused the supply shortage
to grow. The procurement of small caliber
ammunition worth US8.5 billion by the US DoD and
US3.2 billion Munition Acquisition Supply
Solutions (Mass) program of the UK MoD are
examples of such huge ammunition programs being
carried out. Manufacturers that are supplying
ammunition to the defense ministry started
working with educational institutions to create
programs to provide technicians for the industry
as many of the positions are vacant in these
companies due to lack of right workers.
Implementation of measures to fill the existing
shortage of skilled work force to clear order
backlogs and get workers for positions that are
newly created due to programs recently announced
are expected to take much time and as such during
the forecast period, lack of skilled laborers is
expected to remain as a key challenge for the
military ammunition industry.
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Reason To Buy
The US government announced the withdrawal of
majority of its troops from Afghanistan in 2011
and it started gradual withdrawal in the same
year. By February 2014, 34,000 troops are
expected to remain in Afghanistan with the
withdrawal of 34,000 troops. The decision is
expected to affect the military ammunition market
especially the small caliber ammunition market as
these are the types of ammunition mostly used for
the combat mission in Afghanistan. The US has
plans to leave between 6,000-20,000 troops until
2024 for support mission. The UK government also
has plans to reduce its troop size in Afghanistan
to 5,200 by the end of 2013 and to withdraw
remaining soldiers by the end of 2014. Another
major contributor for the Afghanistan combat
mission, Germany has pulled out all of its troops
in 2013. This, as support mission that includes
counterterrorism mission and logistical and
training support for Afghan forces will not
require much of ammunition the draw down plan is
anticipated to negatively impact the market
growth. Along with this, army personnel cuts
announced by countries such as the US and the UK
are also expected to cause a moderate growth of
the military ammunition market. The US plans to
cut its army personnel numbers from 535,000 to
380,000 by 2019 and the UK MoD plans reducing the
number of army personnel from 102,000 to 82,000
by 2017.
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