According to the new research report published by The Insight Partners, titled “Automatic Weapons Market - Global Analysis and Forecast to 2027”, the global Automatic Weapons market is expected to reach US$ 14.95 Bn in 2027, registering a CAGR of 9.9% during the forecast period 2020-2027.
In 2019, North America is estimated to account to hold the largest market share, growing at a CAGR of 8.7%. In APAC region, the automatic weapons market is expected to grow at an exponential rate and therefore anticipated to be a fastest growing region. Few trends are anticipated to have a positive impact on the automatic weapons in North America including, increasing military expenditure and several steps are commenced to boost the automatic weapons market. For instance, in 2018, the Department of Defense (DoD) has awarded contracts to Fabrique National worth of more than US$ 20 Mn for the supply of Mk 48 and Mk 46 machines guns. Similarly, another initiative has been undertaken by Knight Armament and the US Army worth of US$ 16.55 Mn for the supply of 7.62x51mm M110 semi-automatic guns.
In the recent few years, automatic weapons market has witnessed noteworthy M&A and partnership activity. Some of the significant deals includes, Rheinmetall joint venture with FRAEN to enhance its innovative drive as well as experience in producing and developing ammunition, weapon systems. Beretta acquired Victrix Armaments brand from Officina Meccanica Rottigni. This acquisition will help Bretta to strengthen its position in rifle segment. The company would market Victrix product lines including Victoria and Minerva. Furthermore, GD-OTS entered into a contract with the US army of worth US$221 million to deliver fixed and flexible variations of a machine gun system. All these strategic initiatives are expected to enhance the automatic weapons market during the forecast period.
The automatic rifles product category is expected to dominate the automatic weapons market during the forecast period. The huge growth has been experienced in the demand of automatic rifles by the defense forces globally. Besides, automatic rifles are inexpensive when compared to automatic launchers and are thereby can be used in large number of application segment and thus, the automatic rifles demand into the defense sector is noteworthy.
Key findings of the study:
US holds the largest automated weapon market share in North America as well as globally. The US is one of an economically advanced country and observes numerous developments in the defense sector. The country has awarded several contracts in the recent two years which are supporting the growth of automatic weapons. For instance, in 2018, Raytheon has received a deal of US$ 205.2 Mn from the Army for the supply of their Phalanx LPWS (Land Phalanx Weapon System) which is a part of Counter Rocket, Artillery, and Mortar (C-RAM) system. The Department of Defense (DoE) has stated that the automatic guns will comprise several sensors and systems to protect the military bases. China holds the second rank globally in military expenditure and global military strength, owing to the potential threats from North Korea and other neighboring countries. The county continuously engages its arm forces in development of robust weaponry and other military equipment, followed by the US. Moreover, attributing to the technologically advanced country, the Chinese government equips its armed forces with advanced weaponry to safeguard the country’s borders. Chinese defense authority is undertaking strict measures to restructure its armed forces with an objective to extract the maximum benefits from the country’s advanced weaponry.
Contractual alliances, acquisition, and joint ventures along with product innovation is expected to be the key growth strategy to be adopted by players in coming years. However, this strategy could impact competition level. It is also expected to generate new market as well as product opportunities for automatic weapons as recently combined companies will thrive to maintain position and profitability.
Some of the key players operating in the automatic weapons market are Armalite Inc., Barrett Firearms Manufacturing, Colt’s Manufacturing Company, LLC, Fabbrica d'Armi Pietro Beretta S.P.A, FN America, LLC, General Dynamics OTS, Heckler & Koch AG, Northrop Grumman Corporation, Rheinmetall AG, and Singapore Technologies Engineering Ltd. among others.
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