Press Release

Due to Rising Geopolitical Tension, Global Mortar Ammunition Market to Accelerate at a CAGR of 5% During 2025-30

The Global Mortar Ammunition Market size was valued at around USD 86 million in 2024 and is projected to reach USD 115 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 5% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. This growth in the market is attributed to the increasing military expenditure worldwide. Global defense expenditure increased significantly in 2023, growing 7% annually to USD 2.5 trillion, the sharpest increase since 2009 according to SIPRI. All the major regions are experiencing such an increased defense budget and, therefore, a heavy expansion of their arms and ammunition stockpiles. There is increased production of mortar ammunition as countries focus more on security amid growing demand. The leading manufacturers are ramping up their capacities, primarily in Europe, where mortar shell production has increased.

The market is heavily driven by increasing tensions on the geopolitical front. Continued Russia-Ukraine and growing conflict in the Middle East has heavily driven demand for mortar ammunition, particularly high-explosive (HE) rounds, which can be effective in offensive and defensive operations as well as being affordably sourced. Moreover, Europe has remained the leading region in 2024, with countries like Ukraine ramping up production to nearly one million rounds a year because of the war. Even so, the Middle East is also a contributing factor to the growth of the market, given the continued demand fueled by regional wars for mortar shells. The market is hence expected to continue along its upward path, driven by the rising defense budgets and continued steady growth in the demand for mortar ammunition worldwide. Europe plays a central role due to its expansion of ammunition production capacity, further states the research report, “Global Mortar Ammunition Market Analysis, 2025.”

Segmentation Analysis

High-Explosive Rounds Segment Capture the Largest Market Share

Based on the ammunition type, the market is further bifurcated into, high-explosive rounds, Illumination rounds, smoke rounds, precision-guided rounds, training rounds, and anti-personal anti-material (MAPAM) rounds. The high-explosive (HE) segment leads the Global Mortar Ammunition Market, owing to its broad application in both offensive and defensive roles. HE rounds are a major aspect of weakening enemy forces, demolishing fortifications, and defeating adversaries making them vital in modern-day warfare. The rounds are quite economical when stacked against costly precision-guided munitions and, therefore are affordable for nations with limited defense budgets. Hence they are indispensable for conventional war and counter-insurgency warfare. Notably, Rheinmetall landed a contract with Spain for over 100,000 mortar rounds, including HE variants, through 2025.

Furthermore, Elbit Systems debuted its new HE round, with enhanced fragmentation and impact capabilities, seeing light the underlying advances in commodity innovation in light of the changing nature of warfare in May 2024. The ongoing Russia-Ukraine conflict has pushed the production of HE rounds considerably upwards, with Ukraine ramping up its supply from NATO to nearly one million shells per year. The demand for HE mortar shells is expected to persist, driven by escalating global conflicts.

Global Mortar Ammunition Market Revolves Around Europe

Europe dominates the Global Mortar Ammunition Market in 2024, driven primarily by the Russia-Ukraine conflict. The conflict has highly increased the mortar production capacity of the continent, bearing in mind that Europe currently produces nearly a million rounds of mortar and artillery ammunition. Ukraine has raised mortar output to close to a million shells annually. The European Commission has allocated more than USD 500 billion, for raising the ammunition production capabilities in response to their increasing demand. The project will increase the total production capacity of ammunition in Europe to nearly two million rounds per year by the end of 2025, including mortar ammunition. This will further propel the expansion of the Global Mortar Ammunition Market in the foreseeable future.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Elbit Systems, BAE Systems PLC, Rheinmetall AG, SAAB AB, Northrop Grumman, NAMMO AB, Hirtenberger Defence Systems, Singapore Technologies Engineering Ltd., Arsenal JSCo., Poongsan, Day & Zimmermann, ROSTEC, CSG, Thales, General Dynamics Ordinance and Tactical Systems, KNDS, and Others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?