The global small arms market was valued at USD 9.07 billion in 2023 and is anticipated to expand from USD 9.46 billion in 2024 to USD 12.32 billion by 2032, reflecting a CAGR of 3.35% over the forecast period. In 2023, North America led the market, accounting for a 43.33% share.
Small arms are guns or firearms that are used by individuals as a mode of self-defence. They are compact guns and can include rifles, handguns, light machine guns, and shotguns. The purpose of small arms can vary from defence to sports. They are normally used by military personnel and police. The material used in the manufacture of small arms is available in abundance and ease. The lenient law enforcement policies regarding the use of small arms will lead to a wider product adoption across the world. The low-cost of these arms are a primary reason why they are used on a large scale, especially in countries such as the United States. The increasing adoption of small arms will have a direct impact on the growth of the overall market in the coming years.
Browse In-depth Summary of this Research Insight:
https://www.fortunebusinessinsights.com/small-arms-market-103173
List of companies profiled in the report:
- American Outdoor Brands Corporation (The U.S.)
- Fabbrica d’Armi Pietro Beretta S.p.A. (Italy)
- FN HERSTAL (Belgium)
- General Dynamics Corporation (The U.S.)
- Heckler & Koch GmbH (Germany)
- Lockheed Martin Corporation (The U.S.)
- Northrop Grumman Corporation (The U.S.)
- Sturm, Ruger & Co., Inc. (The U.S.)
- Taurus International Manufacturing, Inc. (Brazil)
- Thales Group (France)
The Coronavirus Outbreak to Affect Major Companies as Manufacturing Comes to a Standstill
The recent coronavirus outbreak has created a sense of panic among customers as well as manufacturers across the world. The collaborative steps taken by governments in numerous countries across the world have affected the product and manufacture of small arms. Although there are several countries where the Covid-19 pandemic hasn’t really affected the small arms market, the slow pace of manufacturing in other parts of the world has certainly affected the growth of the global market.
Increasing Number of Company Mergers will Bode Well for Market Growth
The report encompasses several factors that have contributed to the growth of the overall market in recent years. Among all factors, the increasing number of company mergers and acquisitions has made the highest impact on market growth. Due to constant demand for small arms, companies are tying-up with manufacturers for supply of these products for a long duration. In January 2019, the United States Army announced that it has signed a contract with Sig Sauer for long-term supply and development of the company’s popular P320 handgun. The contract is said to worth USD 580 million and will last for 8 years. This will be a significant step in the progress and expansion of the company. The collaboration
with US Army will also make it more popular in the global market. Sig Sauer’s collaboration with the United States Army will not just help the company grow, but will play a huge part in the growth of the overall small arms market in the foreseeable future.
North America Holds the Highest Market Share; High Defense Budget is a Primary Factor Behind Market Growth
The report analyses the latest market trends across five major regions, including North America, Rest of the Word, Europe, Asia Pacific, and the Middle East and Africa. Among all regions, the market in North America is expected to emerge dominant in the coming years. The high defense budgets in countries such as the United States has not just led to a wider product adoption, but has also yielded technologically advanced products. The increasing terror attacks and tense cross-border relations have also contributed to the growth of the small arms market in this region. As of 2019, the market in North America was worth USD 1.56 billion and this value is projected to increase at a considerable pace in the coming years.
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.
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