The ammunition storage market is expected to exhibit a growth rate of over 3% during the forecast period 2020-2025.
- Owing to the increasing instances of armed conflict in geographies such as Middle-East, Asia-Pacific, and North Africa on account of geopolitical rifts and rampant acts of terrorism, national security agencies are procuring a significant quantity of firearms and ammunition, thereby driving the need for safe storage.
- While metal storage containers are prone to the deleterious effects of corrosion, ammunition storage containers made of plastic can withstand such conditions for a relatively long period, thereby driving the adoption rate for plastic storage cans due to their inherent corrosion resistance and lightweight properties.
- The ammunition storage for military and tactical purpose requires setting up of special facilities to be built considering proper standards such as DA PAM 385-64. These standards define the criteria for operations involving ammunition and explosives. Incidents such as the explosion at the Siberian military ammunition storage facility in August 2019, calls for the implementation of stricter regulations and safer equipment to avoid mishaps.
Key Market Trends
Increasing Procurement of Ammunition by Defense Forces
The strained geopolitical scenario has driven nations to safeguard their interests by modernizing their armada, and initiating procurement and upgrade programs to achieve tactical superiority over rival nations. For instance, in July 2019, India initiated the procurement of an undisclosed number of artillery shells and other ammunition for USD 72 million from the US. Also, in April 2019, the Indian Army collaborated with NHPC limited to build underground tunnels for ammunition storage facilities near the border area with China and Pakistan. Similarly, in March 2020, the Polish Armed Forces acquired minigun ammunition for MI-17 helicopters. Miniguns require large volume of ammunition storage owing to their high firing rate that ranges between 3000-6000 rounds per minute. The XM556 micro machinegun by Empty Shell went into production in 2019 and growing sales of miniguns and gatling guns are expected to drive the market for ammunition and ammunition storage.
In 2019, China’s global weapon export stood at USD 1.04 billion with neighboring countries such as Pakistan, Myanmar, Bangladesh. The Chinese arms export to South and South-East Asian nations grew from USD 386 million in 2008 to USD 759 million in 2018 while reaching the peak of USD 1.3 billion in 2016. Since 2006, China has supplied around 16000 rifles and nearly 4100 handguns to Bangladesh. Such factors are propelling the growth of ammunition and ammunition storage in South Asia and Africa.
North America to Dominate the Market During the Forecast Period
The US is one of the leading nations in terms of technological superiority that has a plethora of firearms and other weapons at its disposal to effectively neutralize and subdue hostile forces. It is also the largest exporter of arms with its global arms export standing at USD 10.5 billion in 2018. As of July 2019, India was seeking to acquire the Excalibur artillery ammunition from the US to develop the capability to hit hostile strongholds close to populated areas without any collateral damage. With a strike range of 50 kilometers, the Excalibur ammunition can be busted in the air as well as after its penetration into the bunker-type structures through the use of different fuses.
The US is also an avid buyer of new weapons and ammunition. On this note, in March 2020, the US Army placed an order to procure 155mm BONUS ammunition manufactured by BAE Systems and Nexter Group. the BONUS is designed to destroy armored targets and would be employed by the US Army’s fleet of M109 self-propelled howitzers and M777 ultra-lightweight towed howitzers.
The ammunition storage market is a moderately consolidated one with players such as Sacil SPA, Mauser Packaging Solutions, Milan Box Corporation, etc. dominating the market.
These companies design, develop, and supply ammunition storage boxes offering a set of required features such as maximum protection, low weight, low space occupancy, high stacking permissibility, low packaging cost low, etc. It is crucial for vendors to provide state-of-the-art systems to the end-users to survive and succeed in the intensely competitive market environment. The majority of the defense OEMs are competing based on their in-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and a strong client base.
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