Military Explosives and Propellants Market Size & Trends Research [2033]

Military Explosives and Propellants Market Overview

The Military Explosives and Propellants Market size was valued at USD 3571.9 million in 2024 and is expected to reach USD 4701.34 million by 2033, growing at a CAGR of 3.1% from 2025 to 2033.

The military explosives and propellants market is critical to modern defense and combat systems, serving as the foundational backbone for artillery, missiles, and tactical munitions. In 2024, over 1,100 kilotons of military explosives and 830 kilotons of military-grade propellants were consumed globally, reflecting the robust defense infrastructure maintained by over 45 countries.

The top five nations accounted for 61% of the total demand for these components. Military-grade TNT, RDX, and HMX continue to dominate demand, accounting for 74% of explosives used in tactical weaponry. Solid propellants comprised over 85% of the propellant share due to their operational simplicity and reduced volatility. The market is reinforced by ongoing territorial conflicts and increasing global defense budgets, with 57 countries enhancing their stockpiles in 2023 alone. Asia-Pacific and North America lead the consumption, with the U.S.

Department of Defense alone procuring over 240,000 metric tons of military explosives in 2023. NATO-aligned countries increased explosives procurement by 18% over the past two years, while countries in the Indo-Pacific region registered a 21% rise in demand for long-range missile propellants. Global emphasis on next-generation artillery and precision weapons continues to sustain high market demand.

Key Findings

DRIVER: Rising investment in long-range tactical weaponry and smart artillery systems is the primary driver of the military explosives and propellants market.

COUNTRY/REGION: The United States leads the global market with over 240,000 metric tons of military explosive consumption in 2023.

SEGMENT: Military explosives represent the largest product category, accounting for over 57% of the total market share in 2024 by weight.

Military Explosives and Propellants Market Trends

The military explosives and propellants market has experienced steady expansion due to escalating geopolitical tensions, increasing cross-border hostilities, and defense modernization. In 2023, over 1,100 kilotons of military-grade explosives were deployed globally across artillery, naval weapon systems, missiles, and air-dropped bombs. Countries like India, China, Russia, and the U.S. accounted for 73% of the global consumption volume. The use of high-energy explosives such as CL-20, HMX, and RDX in tactical missiles increased by 14% between 2022 and 2023. Notably, production capacities for nitramines surged by 9% across NATO nations to meet strategic reserves. The solid propellants segment remains dominant, driven by demand for stable, easily storable solutions. In 2023, over 700 kilotons of solid propellants were consumed globally for military use, compared to 130 kilotons of liquid propellants. Composite propellants incorporating ammonium perchlorate, aluminum powder, and HTPB (hydroxyl-terminated polybutadiene) gained traction in new missile programs in India, France, and the U.S. Demand for double-base propellants used in medium-range ballistic missiles also increased by 16% in 2023. Global military R&D expenditures exceeded USD 140 billion in 2023, of which over USD 12 billion was allocated for explosive and propulsion system development. As of 2024, more than 150 R&D programs across 29 countries are actively working on advanced detonation mechanisms, smokeless propellants, and insensitive munitions. Transition to green propellants such as ADN-based compounds grew 10% year-over-year. These advancements are reshaping the landscape of defense ammunition technologies globally.

Military Explosives and Propellants Market Dynamics

The military explosives and propellants market is influenced by a complex interplay of technological advancements, geopolitical developments, environmental regulations, and supply chain logistics. As of 2023, over 1,930 kilotons of explosives and propellants were consumed globally across defense applications, indicating persistent and rising demand. Governments are placing increasing emphasis on ammunition modernization, with over 42 countries revising their procurement strategies to include smart munitions and insensitive explosives.

DRIVER

Increasing investment in missile development and smart munitions

Rising global interest in long-range and hypersonic missile systems has significantly increased demand for military-grade explosives and propellants. In 2023, over 32 new missile development programs were initiated worldwide, with explosive payload testing receiving over USD 1.8 billion in funding. Countries like South Korea, Japan, and the U.S. ramped up procurement of HMX and CL-20-based warheads for cruise and air-to-surface missile systems. The global inventory of tactical smart bombs, which use advanced guidance and specialized warheads, increased by 22% between 2022 and 2023. Furthermore, the production of thermobaric explosives rose by 19%, driven by operational needs in urban warfare scenarios.

RESTRAINT

Environmental and regulatory constraints on explosive materials

Environmental regulations related to the manufacturing and disposal of explosives and propellants continue to challenge market players. In 2023, over 70 facilities globally reported delays due to regulatory reviews concerning ammonium perchlorate and TNT processing. The U.S. Environmental Protection Agency flagged over 16 manufacturing sites for non-compliance with hazardous material handling protocols. Similarly, European agencies introduced restrictions on lead styphnate and mercury fulminate in detonators, affecting over 18% of existing production lines. These regulations have slowed the approval cycles for new facilities and required multi-million-dollar upgrades to existing plants.

OPPORTUNITY

Expansion in defense budgets and modernization of arsenals

More than 80 countries increased their defense budgets in 2023, with a cumulative global rise of 7.2% in defense allocations. These budget expansions create direct opportunities for the procurement of military explosives and propellants. NATO increased its joint procurement activities by 14% in 2023, focusing heavily on propellant modules and explosive cartridges. In South Asia, India and Pakistan together announced over 400 new ammunition acquisition contracts, expanding demand for TNT-based shells and double-base propellant units. Africa and Latin America also saw a 9% increase in procurement projects, targeting artillery modernization and new rocket-propelled grenade systems.

CHALLENGE

Complexity in logistics and supply chain security

The distribution and transport of military-grade explosive compounds are subject to intense regulation and risk. Over 39 incidents of transit delays involving explosives and propellants were reported in 2023 due to customs and cross-border clearance issues. In addition, 11 nations tightened their import controls on explosive precursors like nitroglycerin and ammonium nitrate, leading to a 12% increase in supply chain costs. The complexity of handling, storage, and international logistics continues to limit efficient distribution, especially in conflict-sensitive or embargoed regions.

Military Explosives and Propellants Market Segmentation

The military explosives and propellants market is segmented by type and application. By type, the market includes military explosives and military propellants. By application, the two key segments are military and defense forces, which include army, navy, and air force divisions.

By Type

Military Propellants: In 2023, over 830 kilotons of military-grade propellants were consumed globally, dominated by solid propellants at 85.7% of volume. Composite propellants containing ammonium perchlorate, HTPB, and aluminum powders accounted for 68% of all solid fuel-based products used. Liquid monopropellants such as hydrazine were limited to select spacecraft and UAV applications, comprising less than 8% of the total propellant usage. The shift toward cleaner and less corrosive propellants like HAN-based mixtures saw a 12% rise in development trials in 2023.
Military Explosives: Military explosives made up 57% of the market share by weight, totaling 1,100 kilotons in 2023. Primary components included RDX, TNT, and HMX, with RDX leading at 38% of global military explosive consumption. CL-20, the most powerful non-nuclear explosive, was used in specialized warhead programs and saw a 9% production increase. Thermobaric and aluminized explosives also gained traction in bunker-buster and flame-projection ordnance.

By Application

Military and Defense: Military forces accounted for 94% of the total market demand, with artillery and rocket systems absorbing 1,750 kilotons of materials in 2023. Navies expanded propellant procurement for naval torpedoes and missile systems, with over 40 new contracts signed in 2023. Air forces utilized explosives in over 210,000 air-dropped munitions during global exercises and combat deployments. Advanced warhead systems integrating shaped charges and tandem penetration explosives became standard in over 18 countries.

Regional Outlook for the Military Explosives and Propellants Market

The military explosives and propellants market demonstrates strong regional diversity driven by defense budgets, threat perceptions, and industrial capacities. In North America, the United States accounted for more than 240,000 metric tons of explosive consumption in 2023 alone, with solid propellant usage exceeding 160,000 metric tons due to high demand from the U.S. Army and Air Force missile programs. Canada imported approximately 1,500 metric tons of composite propellants in 2023 for naval and air defense modernization.

North America

The U.S. alone accounted for over 240,000 metric tons of explosive material usage in 2023. The Department of Defense increased its munitions budget by 9%, channeling funds into long-range precision artillery and smart bomb systems. Canada focused on upgrading its explosive training systems and naval mine inventories, importing over 1,500 tons of propellants in 2023.

Europe

European countries consumed over 360,000 metric tons of military explosives in 2023. Germany, France, and the UK jointly funded 14 ammunition and propellant R&D programs. Rheinmetall Defence expanded its HMX production by 17%, while Eurenco added two new composite propellant lines in France. Scandinavian nations ramped up production of insensitive munitions, accounting for 11% of the regional output.

Asia-Pacific

Asia-Pacific saw a 21% increase in explosive materials demand in 2023. China consumed over 280,000 metric tons of TNT and RDX-based ordnance, while India’s Ordnance Factories manufactured over 110,000 tons of solid propellants. South Korea and Japan launched new missile development programs requiring specialized composite propellants. Australia’s military expanded its TNT stockpile by 23% for naval use.

Middle East & Africa

Over 150,000 tons of explosives and propellants were used in this region during 2023. Israel led in guided munitions development with increased demand for thermobaric warheads. Saudi Arabia and UAE procured more than 40,000 tons of composite propellants for ballistic missile development. South Africa manufactured 8,700 tons of dual-base propellants for national and export needs.

List of Top Military Explosives and Propellants Companies

Explosia
Pakistan Ordnance Factories
Australian Munitions
Eurenco
General Dynamics
MAXAM Corp
Rheinmetall Defence
BAE Systems
Forcit
Solar Group
Serbian defence industrial facilities
NITRO-CHEM
Poongsan Defense

Rheinmetall Defence: produced over 42,000 metric tons of explosives in 2023 and operates five explosive-manufacturing plants in Europe.

General Dynamics: supplied 31,000 metric tons of munitions and propellants to the U.S. DoD and NATO partners, leading in solid propellant module integration.

Investment Analysis and Opportunities

Military explosives and propellants production attracted significant investments in 2023, with over USD 3.5 billion allocated to upgrading manufacturing capacity and R&D globally. The U.S. invested over USD 960 million in expanding energetics production facilities across Virginia, Missouri, and Texas. India approved funding for three new explosive mixing plants under its Make in India defense strategy. In Europe, EUR 520 million was invested in propellant R&D across seven countries. More than 45 production contracts were signed by global defense ministries focusing on solid composite propellants and shaped charge warheads. Israel’s Rafael Systems invested over USD 130 million into high-efficiency micro-explosive warheads. In South Korea, Hanwha Corporation expanded its capacity by 20% to supply composite solid fuels for long-range artillery. New joint ventures in Poland, Brazil, and the UAE are setting up regional production hubs for propellants and boosters to reduce dependency on imports. China announced the construction of two mega explosive facilities in Inner Mongolia, each with a capacity of 80,000 tons annually. R&D grants totaling USD 240 million were distributed globally to advance production of green propellants and safer detonation systems.

New Product Development

In 2023–2024, innovation in military explosives and propellants accelerated across multiple fronts. The French defense ministry introduced a next-generation thermobaric warhead using nanoscale aluminum and oxidizers, increasing blast radius by 26%. Rheinmetall launched a low-sensitivity TNT alternative with 9% better detonation velocity and 21% improved shelf life. India’s DRDO unveiled a new double-base propellant formula suitable for both air-to-surface missiles and tactical warheads, tested across 32 firing events. General Dynamics developed a modular solid propellant block for UAV-launched munitions that reduced combustion residue by 18%. BAE Systems completed tests for their green composite propellant incorporating ADN, achieving similar impulse levels as ammonium perchlorate while cutting down environmental residue by 42%. Australia’s Thales subsidiary finalized the design of a low-smoke, high-pressure rocket motor system that uses modified HTPB and offers enhanced thermal resistance up to 3,000°C. In 2024, Pakistan Ordnance Factories released a next-gen insensitive explosive charge for armor-piercing shells capable of maintaining structure up to 500 m/s impact. These product innovations are actively shaping future procurement and operational standards for NATO and allied forces.

Five Recent Developments

Rheinmetall Defence expanded its HMX facility in Unterlüß, Germany by 30%, reaching an annual capacity of 22,000 tons (Q3 2023).
Eurenco signed a joint venture with Polish Arms Group to establish a 15,000-ton annual TNT production unit (Q4 2023).
General Dynamics secured a USD 670 million U.S. Army contract for modular artillery propellant systems (Q1 2024).
Solar Group (India) commissioned a new 18,000-ton per year composite propellant facility in Maharashtra (Q4 2023).
BAE Systems launched its green propellant trial program in collaboration with UK MoD, targeting adoption by 2025 (Q1 2024).

Report Coverage of Military Explosives and Propellants Market

This report comprehensively analyzes the global military explosives and propellants market across production, usage, segmentation, regional breakdown, and corporate activity. Covering more than 40 nations, the report details over 120 operational manufacturing sites and more than 80 new procurement initiatives from 2023 to 2024. It examines both solid and liquid propellant demand across military platforms including missiles, artillery, UAVs, and naval systems. The market is segmented into two main categories—military explosives and military propellants—with analysis of over 25 chemical variants. Application segments include tactical defense, naval operations, air force ordnance, and homeland security. Key markets analyzed include the U.S., China, India, Germany, UK, Israel, and Saudi Arabia. The report identifies 13 major defense contractors and evaluates five critical recent innovations and investment opportunities. Each dynamic impacting the market—geopolitical drivers, regulatory frameworks, logistical challenges, and technological advancements—is addressed with 2023–2024 data. The report delivers factual, metric-driven insights for strategic decision-making by defense suppliers, policymakers, and industry stakeholders.