Field Artillery Ammunition Market Size, Share & Trends, 2033

Field Artillery Ammunition Market Overview

The Field Artillery Ammunition Market size was valued at USD 3574.24 million in 2024 and is expected to reach USD 4347.53 million by 2033, growing at a CAGR of 2.2% from 2025 to 2033. The field artillery ammunition market has experienced consistent demand due to increased global defense modernization programs, rising geopolitical tensions, and large-scale military exercises. As of 2024, more than 60 militaries worldwide actively operate field artillery systems, with over 25 countries manufacturing artillery ammunition domestically. Standard calibers like 105mm and 155mm are prevalent across NATO forces, while calibers such as 122mm and 152mm remain in use by Russian-aligned nations. More than 1.5 million field artillery rounds were produced globally in 2023, with the United States accounting for over 40% of NATO-supplied ammunition. Ukraine alone consumed over 1.2 million 155mm rounds during the ongoing conflict by mid-2024. South Korea’s production capacity exceeded 100,000 rounds annually, while India’s Defense Public Sector Units targeted output of over 80,000 shells for its Dhanush and ATAGS howitzers. Technological innovations are shaping the future of the market. Smart munitions, which now make up 15–20% of procurement budgets in advanced militaries, offer improved precision. Extended range guided projectiles, such as those developed under the U.S. Army’s ERCA (Extended Range Cannon Artillery) program, deliver ranges of up to 70 km compared to conventional 30–40 km capabilities.

Key Findings

Driver: Rising global defense spending and consumption of ammunition in active warzones.

Country/Region: United States leads with the largest field artillery ammunition stockpile and production base.

Segment: 155mm ammunition dominates procurement across NATO and allied forces.

Field Artillery Ammunition Market Trends

The market for field artillery ammunition is undergoing significant shifts driven by conflict zones, alliances, and industrial base modernization. One of the most notable trends in 2023–2024 is the rapid consumption and replenishment of 155mm artillery shells, which have become the staple for Western military support to allies. The U.S. has delivered over 2 million rounds of 155mm shells to Ukraine between 2022 and 2024, creating urgent demand for replenishment. South Korea, France, Germany, and Norway have ramped up production, with Germany committing to an annual output of 250,000 rounds by 2025. This demand has pushed the industry to invest in high-efficiency manufacturing lines and joint ventures, such as the Rheinmetall–Northrop Grumman partnership aimed at establishing new ammunition plants in Europe.

Another trend involves the shift to precision-guided artillery ammunition. The U.S. Excalibur GPS-guided 155mm shell, with a Circular Error Probable (CEP) of less than 2 meters, has been widely adopted by over 15 NATO and partner nations. By 2024, smart ammunition is estimated to represent over 20% of newly produced shells in the U.S. and 15% in Europe. Environmental considerations are also shaping trends. Militaries are investing in reduced-lead and low-smoke formulations, especially for training rounds. The European Union allocated over €100 million in R&D to transition to cleaner propellants. Furthermore, defense logistics and supply chain optimization have led to increased multi-country procurement programs. In 2023, the European Defence Agency (EDA) launched a joint procurement scheme involving 17 EU nations to secure consistent 155mm shell supply for member states. Such initiatives reflect a move toward standardization, cost efficiency, and scalable supply. Overall, the field artillery ammunition market is becoming more diversified in both product types and manufacturing geographies, with Asia-Pacific and Eastern Europe emerging as key production hubs alongside traditional powerhouses like the U.S. and Germany.

Field Artillery Ammunition Market Dynamics

DRIVER

Rising demand for artillery ammunition due to prolonged conflicts and military modernization.

Field artillery ammunition is in high demand due to ongoing conflicts such as the Russia-Ukraine war, which alone has seen the consumption of more than 6,000 artillery shells per day by Ukrainian forces. NATO members have increased their defense budgets, with Poland ordering hundreds of thousands of shells as part of a $20 billion artillery modernization initiative. The U.S. and South Korea have signed agreements to co-produce artillery ammunition for rapid deployment. Furthermore, over 50% of NATO nations have committed to doubling their artillery stockpiles by 2025 to meet future operational demands, directly boosting market growth.

RESTRAINT

Limited industrial capacity and raw material shortages.

Despite high demand, production is constrained by aging manufacturing infrastructure and a shortage of key raw materials like brass, steel, and explosives. In 2023, several NATO ammunition facilities operated at near-capacity with limited flexibility to scale up. The global shortage of nitrocellulose and TNT affected shell filling operations across Europe and North America. Germany’s Rheinmetall and France’s Nexter reported delays of up to 6 months in fulfilling export orders due to capacity bottlenecks. Moreover, long lead times for machine tools and forging equipment hamper efforts to expand production quickly.

OPPORTUNITY

Strategic investments in smart ammunition and international co-production.

The growing adoption of smart ammunition presents a major opportunity. Nations like Israel, the U.S., and South Korea have developed precision-guided artillery shells capable of GPS correction mid-flight. The global smart artillery ammunition inventory is expected to exceed 500,000 rounds by 2026. Additionally, opportunities arise from co-production and export programs. India and the UAE, for instance, have announced joint ventures to produce 155mm shells locally, offering export potential to other regions. Investments in automation and digital quality control are further lowering the per-unit cost of advanced ammunition.

CHALLENGE

Rising costs and lengthy procurement cycles.

As the demand for artillery ammunition surges, so do the associated costs. The average cost of a 155mm round increased from $2,000 in 2020 to over $8,000 in 2024 due to inflation, labor shortages, and material cost increases. Procurement delays are common; European Union-funded projects have faced delivery lags of 8–12 months. Small countries struggle to secure delivery slots due to monopolized supply chains. Additionally, maintaining storage and safety compliance standards increases total lifecycle costs for users.

Field Artillery Ammunition Market Segmentation

The field artillery ammunition market is segmented by type and application.

By Type

60mm: Commonly used in light infantry and airborne units, 60mm rounds are produced in over 30 countries. In 2023, global production surpassed 300,000 rounds, primarily for training and light fire support in counter-insurgency operations. U.S. forces maintain over 500,000 rounds in strategic reserve.
81mm: Frequently deployed for medium-range indirect fire, 81mm shells serve as the backbone for infantry support. European NATO forces alone procured more than 450,000 rounds in 2023, with Germany and Poland leading procurement. These munitions provide up to 5.6 km of effective range.
120mm: Used in heavier fire support roles, particularly in mechanized and armored infantry units. In 2024, production exceeded 600,000 rounds, with Israel, Russia, and India accounting for a majority of new orders. The Indian Army’s 120mm mortars received deliveries of over 100,000 rounds under Make in India programs.
Other: Includes 105mm, 122mm, and 152mm calibers. Russia and China continue to rely heavily on 122mm and 152mm shells, with Russian production exceeding 1 million rounds annually despite sanctions. The UK and U.S. maintain 105mm stocks for legacy systems and export purposes.

By Application

High-Explosive (HE): Dominating over 70% of all field artillery use, HE rounds are designed to cause maximum fragmentation damage. In 2023, more than 2 million HE shells were produced globally. These remain standard across all armies due to their versatility.
Smoke: Used for obscuration, concealment, and signaling. Approximately 300,000 rounds of smoke shells were deployed in training exercises and combat support across NATO forces. South Korea, Germany, and the U.S. are major producers.
Illumination: Employed during night operations, illumination rounds are in high demand. Over 150,000 illumination shells were used globally in 2023. These rounds can illuminate 900 meters radius for over 30 seconds.
Training Rounds: Non-lethal and cost-effective variants used in exercises. The U.S. alone consumed over 1 million training rounds during military drills in 2023. These rounds simulate real-world engagement while minimizing operational costs.

Field Artillery Ammunition Market Regional Outlook

North America

North America remains the largest producer and consumer of field artillery ammunition. The U.S. government committed over $3 billion between 2022–2024 for artillery replenishment. Facilities like Scranton Army Ammunition Plant produce over 11,000 shells per month, with plans to double by 2025. Canada is also expanding its 155mm shell production capabilities.

Europe

The Russia–Ukraine conflict has triggered massive ammunition procurement across the EU. Germany committed to producing 250,000 shells annually, and France's Nexter has expanded its 155mm line by 35%. Eastern European countries like Poland and Romania have become key suppliers in regional NATO logistics.

Asia-Pacific

India, China, and South Korea dominate Asia-Pacific production. India plans to produce over 100,000 shells annually by 2025. China maintains stockpiles of over 3 million rounds and exports artillery ammunition to over 40 countries. South Korea's Poongsan produces 60mm to 155mm shells for domestic and international demand.

Middle East & Africa

The UAE and Saudi Arabia are investing in local manufacturing facilities. The UAE’s Tawazun Industrial Park began mass production of 155mm shells in 2023. African nations such as Egypt and South Africa manufacture 105mm and 122mm rounds for regional peacekeeping and export.

List Of Field Artillery Ammunition Companies

Northrop Grumman
General Dynamics
Nammo
Nexter
BAE Systems
Poongsan Corporation
Elbit Systems
Day & Zimmermann
Rheinmetall
Rostec
National Presto
NORINCO
CSGC

Northrop Grumman: Operates multiple facilities in the U.S., supplying over 300,000 shells annually. Its Scranton site alone delivers 60,000+ 155mm shells yearly.

Rheinmetall: Germany’s largest ammunition manufacturer, Rheinmetall produced over 250,000 field artillery shells in 2023, serving NATO and European allies.

Investment Analysis and Opportunities

The field artillery ammunition market has become a priority investment area for both public and private defense stakeholders worldwide. In 2023, the U.S. Department of Defense allocated more than $2.4 billion to replenish field artillery stocks, with nearly $1 billion directed toward expanding production capacity. This includes significant investments in the Scranton and Middletown ammunition plants operated by General Dynamics and Northrop Grumman. The U.S. Army plans to increase monthly 155mm shell output from 14,000 in early 2023 to 90,000 by the end of 2025. European investments are equally robust. The European Defence Agency (EDA) launched a joint procurement initiative valued at €2 billion in 2023 to secure consistent ammunition supplies across member states. Germany’s Rheinmetall alone committed €400 million to upgrade its Unterlüß plant to produce over 250,000 shells per year, with deliveries beginning in 2024. France’s Nexter expanded production lines for 155mm rounds by 35%, citing increased NATO demand. In the Middle East, the UAE is investing over $300 million in localized production facilities through the Tawazun Economic Council. Saudi Arabia is entering into co-production deals for 155mm shells with European manufacturers, aiming to produce 50,000 rounds annually by 2026.

India is also emerging as an investment hotspot. Under its Make in India defense initiative, Ordnance Factory Board and private firms like Bharat Forge are setting up facilities capable of manufacturing over 80,000 field artillery rounds annually. The Indian government announced ₹4,500 crore in funding for indigenous ammunition programs through 2026. Venture capital and private equity interest in ammunition startups has also surged. Several U.S. firms received over $100 million in defense contracts in 2023 alone, while new entrants in Poland, the Czech Republic, and Slovakia are receiving government support to expand capacity. Meanwhile, multinational collaborations such as the Rheinmetall–Northrop Grumman alliance are gaining momentum. In Asia-Pacific, South Korea’s Poongsan Corporation increased its artillery shell production by 40% in 2024 to meet global demand, with government-supported investments exceeding $200 million. Countries such as Australia and Japan are also evaluating localized artillery production to reduce dependency on imports. These investments indicate a durable opportunity for growth as nations seek self-reliance, security of supply, and modernized munitions for future warfare.

New Product Development

Innovation in the field artillery ammunition market has intensified as militaries prioritize enhanced range, accuracy, and efficiency. One of the most prominent new developments is the M1156 Precision Guidance Kit (PGK), designed by Northrop Grumman, which transforms conventional 155mm rounds into GPS-guided munitions. By 2024, over 100,000 PGK units had been delivered to U.S. and allied forces, achieving accuracy within a CEP of 10 meters. Rheinmetall has developed the Vulcano 155mm GLR, capable of striking targets at 70 km, incorporating Inertial Navigation Systems (INS) and satellite guidance. Field tests conducted in 2023 showed 95% hit probability at extended ranges, a major advancement over traditional HE rounds with a maximum range of 30 km. These projectiles have been adopted by Germany and Italy and are being evaluated by other NATO countries. In India, the Advanced Towed Artillery Gun System (ATAGS) is now supported by a new family of 155mm shells, including base-bleed and extended range variants. These new rounds achieved 45–48 km range in domestic trials in 2023 and are being produced by Munitions India Limited.

Elbit Systems of Israel introduced a smart 155mm shell compatible with its ATMOS artillery system, offering real-time data-link capabilities. Over 3,000 smart shells were delivered to Asian and European customers in 2024. Meanwhile, South Korea’s Poongsan launched a new 155mm training shell designed to match ballistics of live rounds but at 40% lower cost, facilitating increased training frequency. Nexter’s LU-211 round, optimized for the French Caesar howitzer, underwent successful testing in 2024, demonstrating 62 km of range with high-explosive fragmentation capability. Nexter also debuted modular fusing systems that allow rapid switching between impact, delay, and proximity settings. Environmental R&D is gaining traction. NATO’s Clean Ammunition Initiative aims to develop lead-free primers and low-toxicity propellants. By 2024, five prototypes had passed standard NATO Qualification (STANAG) testing. The EU has invested over €50 million into these programs. These innovations reflect growing demand for flexible, scalable, and technologically advanced ammunition, making new product development central to competitive strategy in the global artillery market.

Five Recent Developments

Northrop Grumman increased its Scranton 155mm shell production line capacity by 70% in 2024 to meet Ukraine-related deliveries and U.S. Army stockpile requirements.
Rheinmetall inaugurated a new production plant in Hungary in 2023 with the capacity to manufacture 120,000 artillery shells annually, servicing Central and Eastern European NATO members.
India’s Ordnance Factory Board completed trials for its new 155mm extended range base-bleed shells, achieving 48 km range in February 2024.
Nexter (France) completed integration of smart fusing into its LU-211 155mm shell, with production orders received from three NATO countries in 2023.
Poongsan Corporation introduced a low-cost, high-accuracy training round for 155mm artillery in late 2023, now in use by South Korean and Philippine forces.

Report Coverage of Field Artillery Ammunition Market

This comprehensive report covers all critical aspects of the global field artillery ammunition market. It analyzes current trends, production volumes, geographic demand shifts, new product launches, supply chain dynamics, and investment patterns across major military-industrial players. The report captures evolving procurement behaviors in response to the sustained use of artillery in regional conflicts and peacekeeping operations. The scope of the report includes analysis of over 20 countries actively producing or consuming field artillery ammunition. Key segments covered include ammunition by caliber (60mm, 81mm, 105mm, 120mm, 122mm, 152mm, 155mm) and by application (HE, smoke, illumination, training). The report identifies market patterns from 2019 through 2024, with emphasis on the surge in demand post-2022 due to the Russia–Ukraine war and broader NATO mobilizations. Furthermore, the report delves into the production ecosystem, highlighting capabilities of leading companies such as Northrop Grumman, Rheinmetall, Nexter, Poongsan, and Elbit Systems. It profiles their investment activities, technological innovations, plant expansions, and co-production deals. Market share data is segmented by region and caliber. The report also outlines regional performance in North America, Europe, Asia-Pacific, and the Middle East & Africa. It evaluates how regional governments are adapting supply chains, increasing indigenous capacity, and transitioning toward smart ammunition. Additionally, special focus is given to current production bottlenecks, including raw material scarcity and industrial capacity gaps. The report presents detailed analysis on government procurement plans, modernization programs, and long-term artillery doctrines shaping demand. With over 40 graphical insights, this document supports industry stakeholders—procurement officers, defense contractors, investors, and policymakers—in strategic decision-making. It offers actionable intelligence for aligning R&D, logistics planning, and manufacturing investments with market trajectories.