Published on : May 30, 2016
Worldwide, expenditures on arms and ammunition form a big part of a nations’ spending. This is mainly because countries around the world are struggling with threat of terrorism, thereby necessitating to overhaul their defense capabilities. Organizations such as the North Atlantic Treaty Organization (NATO) are working towards counteracting terrorism by enhancing awareness of the threat, improving capabilities to prepare and respond, and escalating engagement with partner countries and other international bodies. As such, obtaining and developing advanced weaponry and ammunition is highly competitive for nations around the world.
Worldwide, nations are striving to ensure security from foreign forces, thereby investing heftily on modern weaponry and ammunition. These practices have close association with securing the nation’s economy and lives of its citizens. Increasing concerns due to adverse geopolitical conflicts and changing military and law enforcement requisites as preparatory measures to respond to an eventuality is bolstering growth of the ammunition market worldwide. Continuous research and development for advanced weaponry is also enhancing the demand scenario of the ammunition market globally. The rising popularity of shooting-related sports is also favoring growth of the ammunition market.
Asia Pacific and the Middle East and Africa are some of the most lucrative markets for ammunition. The increasing arms race in these regions owing to some of the most barbaric terrorist attacks in these regions are reasons for the same. Countries in these regions are focused on gearing up their armed troops to be prepared in the event of a terrorist threat.
Europe stands as a strong market for ammunition amongst all other regional markets. In 2014, Europe contributed a revenue of 35% to the global market. Meticulous efforts for modernization of the armed forces and rising adoption of technologically advanced ammunition are reasons for the same.
On the other hand, demilitarization in Europe since the 1970s that solidified in the 1990s and finally aggravated with the financial slump of 2008 is undeniable. Shrinking budgets resulting in smaller armed troops, installation of equipment in small quantities, and insufficient military capacity are reasons for this. Consequently, demilitarization is leading to an unstable Europe wherein collective violence remains a reality.