CHAPTER 1 - MARKET SUMMARY
Market Overview
The Global Mortar Ammunition Market operates through government procurement programs, framework contracts and government-to-government transfers, with manufacturers monetizing complete rounds, fuzes, propellant increments and guidance kits. Global military expenditure increased by 9.4% in 2024 to USD 2.718 trillion, expanding the available funding base for stock replenishment, training consumption and deployment-ready reserves.
North America remained the largest commercial hub in 2025, representing an estimated 36.2% of global mortar ammunition value. The region benefits from recurring United States procurement, an established government-owned and contractor-operated ammunition base and qualified production across 60 mm, 81 mm and 120 mm families. General Dynamics identifies itself as a leading United States supplier of mortar components and propelling increments.
Market Value
USD 4,420 million
2025
Dominant Region
North America
2025
Dominant Segment
120 mm Ammunition
fastest growing
Total Number of Players
78
Future Outlook
The Global Mortar Ammunition Market is projected to increase from USD 4,420 million in 2025 to USD 5,992 million by 2031. The forecast reflects a transition from inventory normalization toward structured replenishment, higher training intensity and accelerated procurement of extended-range rounds. Historical growth averaged 3.73% during 2020-2025, with the market moving from 1.79% annual growth in 2021 to 5.11% in 2025. Future value growth is expected to exceed volume growth as advanced fuzes, insensitive-munition materials and guided variants increase the average value captured per round across major procurement programs.
The 2026-2031 forecast CAGR is estimated at 5.20%, supported by equipment-budget expansion in NATO countries, Asia Pacific force modernization and higher demand for interoperable 60 mm, 81 mm and 120 mm families. Conventional ammunition will remain the largest revenue pool, while precision-guided and dual-mode rounds will contribute disproportionate incremental value. The guided and advanced ammunition mix is projected to increase from 9.6% in 2025 to 14.8% by 2031. Producers with qualified energetics supply, vertically integrated fuzes and multi-year customer contracts are expected to capture stronger margins and reduce exposure to annual procurement volatility.
5.20%
Forecast CAGR
$5,992 Mn
2030 Projection
Base Year
2025
Historical Period
2020-2025
Forecast Period
2026-2031
Historical CAGR
3.73%
CHAPTER 2 - SCOPE OF REPORT
Scope of the Market
CHAPTER 3 - Key Stakeholders
Key Target Audience
Key stakeholders who can leverage from this market analysis for investment, strategy and operational planning.
Investors
backlog, margins, capex intensity, contract concentration, export risk
Corporates
energetics security, yield, qualification cycles, bids, localization
Government
stockpile readiness, interoperability, sovereign capacity, safety, resilience
Operators
accuracy, range, reliability, storage life, training compatibility
Financial institutions
order visibility, working capital, covenants, licensing, repayment resilience
CHAPTER 4 - Market Size & Growth
Market Size, Growth Forecast and Trends
This section evaluates the historical market size, analyzes year-over-year growth dynamics, and presents forecast projections supported by market performance indicators and demand-side drivers.
Historical & Projected Market Size ($ Million)
Year-over-Year Growth Rate (%)
Market Value vs Volume Growth (%)
Historical Market Performance (2020-2025)
Historical growth reached its lowest level in 2021 at 1.79%, reflecting delayed procurement cycles and inventory management following pandemic-related operational disruption. Growth accelerated to 3.89% in 2023 and 4.99% in 2024 as military customers expanded replenishment activity. The 120 mm value share increased from approximately 46.0% in 2020 to 49.8% in 2025, supported by mechanized mortar systems and higher unit values. The estimated standard-round-equivalent volume increased from 4.82 million to 5.25 million during the period, while richer ammunition mix contributed more strongly to total value expansion.
Forecast Market Outlook (2026-2031)
The market is forecast to grow at 5.20% annually, reaching USD 5,992 million in 2031. Standard-round-equivalent volume is projected to increase to 6.36 million, implying a 3.25% volume CAGR from 2025. The gap between value and volume growth reflects increasing procurement of proximity-fuzed, insensitive-munition and guided ammunition. The 120 mm segment is expected to represent 51.8% of market value by 2031, while the guided and advanced mix reaches 14.8%. Average value per standard-round equivalent is projected to rise from approximately USD 842 in 2025 to USD 942 by 2031.
CHAPTER 5 - Market Data
Market Breakdown
The Global Mortar Ammunition Market is entering a higher-throughput investment cycle in which volume replenishment and technology mix jointly determine supplier economics. CEOs and investors should assess contracted production visibility, qualified caliber breadth and exposure to high-value guided ammunition.
Year | Market Size (USD Mn) | YoY Growth (%) | Global Volume (Mn Standard-Round Equivalents) | 120 mm Value Share (%) | Guided and Advanced Mix (%) | Period |
|---|---|---|---|---|---|---|
| 2020 | $3,680 Mn | +- | 4.82 | 46.0% | Forecast | |
| 2021 | $3,746 Mn | +1.79% | 4.85 | 46.5% | Forecast | |
| 2022 | $3,855 Mn | +2.91% | 4.93 | 47.2% | Forecast | |
| 2023 | $4,005 Mn | +3.89% | 5.04 | 48.1% | Forecast | |
| 2024 | $4,205 Mn | +4.99% | 5.15 | 49.0% | Forecast | |
| 2025 | $4,420 Mn | +5.11% | 5.25 | 49.8% | Forecast | |
| 2026 | $4,650 Mn | +5.20% | 5.41 | 50.2% | Forecast | |
| 2027 | $4,892 Mn | +5.20% | 5.58 | 50.6% | Forecast | |
| 2028 | $5,146 Mn | +5.19% | 5.76 | 50.9% | Forecast | |
| 2029 | $5,414 Mn | +5.21% | 5.94 | 51.2% | Forecast | |
| 2030 | $5,696 Mn | +5.21% | 6.15 | 51.5% | Forecast | |
| 2031 | $5,992 Mn | +5.20% | 6.36 | 51.8% | Forecast |
Global Volume
104,000 rounds, 2024-2025, Spain. Large batch contracts improve line utilization and purchasing leverage for energetics, casings and fuzes. Rheinmetall's Spanish award covered 60 mm, 81 mm and 120 mm rounds, illustrating the commercial advantage of multi-caliber portfolios.
120 mm Value Share
USD 190 million contract, 2024, international customer. The contract for Elbit Systems' Iron Sting guided mortar ammunition demonstrates how 120 mm precision products can create materially higher revenue per delivered round than conventional ammunition.
Guided and Advanced Mix
5% of GDP commitment by 2035, NATO. Expanded equipment budgets can accelerate qualification and fielding of guided mortar rounds, but value capture will favor suppliers with integrated seekers, fuzes and fire-control compatibility.
CHAPTER 6 - Segmentation
Market Segmentation Framework
Comprehensive analysis across key dimensions providing insights into market structure, military customer requirements and defence procurement patterns.
No of Segments
7
Dominant Segment
Caliber
Fastest Growing Segment
Guidance Technology
Caliber
Ammunition Type
End User
Application
Sales Channel
Guidance Technology
Geography
Key Segmentation Takeaways
Comprehensive analysis across all extracted segmentation dimensions providing insights into market structure, military customer requirements and procurement patterns.
Caliber
Caliber is the dominant segmentation dimension because it determines weapon compatibility, payload, effective range, logistics burden and procurement value. The 120 mm category generates the largest revenue pool due to heavier payloads, vehicle-mounted adoption and suitability for precision guidance. The 60 mm and 81 mm categories retain strategic importance for portable infantry and expeditionary operations.
Guidance Technology
Guidance Technology is the fastest-growing dimension as defence customers seek greater accuracy, reduced ammunition expenditure per target and lower collateral-risk exposure. Dual-mode guided 120 mm rounds are the leading growth sub-segment because they combine satellite, inertial and laser guidance options. Growth remains dependent on fire-control integration, seeker availability, qualified electronic components and government willingness to fund higher unit costs.
CHAPTER 7 - Regional Analysis
Regional Analysis
North America was the largest regional market in 2025, supported by United States procurement and an established ammunition industrial base. Europe is expanding fastest among mature markets as stock replenishment, Ukraine-related support and industrial-capacity programs translate defence-budget growth into multi-year ammunition orders.
Regional Ranking
North America, 1st
Regional Share vs Global (North America)
36.2%
North America CAGR (2026-2031)
4.1%
Regional Ranking
North America, 1st
Regional Share vs Global (North America)
36.2%
North America CAGR (2026-2031)
4.1%
Regional Analysis (Current Year)
Regional Analysis Comparison
Market Position
North America ranked first with USD 1,600 million in 2025, supported by recurring United States demand and qualified domestic production across 60 mm, 81 mm and 120 mm components.
Growth Advantage
Asia Pacific leads forecast growth at 6.6%, ahead of Europe at 5.8% and North America at 4.1%, reflecting modernization programs, expanding indigenous production and broader force-structure requirements.
Competitive Strengths
Europe combines 27 mapped qualified producers with EUR 115 billion of equipment procurement in 2025 and EU-backed investment in explosives, propellants, shells and testing capacity.
CHAPTER 8 - INDUSTRY ANALYSIS
Growth Drivers, Challenges & Opportunities
Comprehensive analysis of key factors shaping the Global Mortar Ammunition Market, including growth catalysts, operational challenges and emerging opportunities across production, procurement and military end-user segments.
Growth Drivers
Expansion of Defence and Equipment Budgets
- Military expenditure increased by 9.4% (2024, global), supporting procurement of consumable munitions that must be replaced after training, testing, transfers and operations. Producers with qualified surge capacity capture the earliest incremental orders.
- NATO defence expenditure reached approximately USD 1,405 billion (2025 estimate, NATO), strengthening demand visibility across the largest addressable procurement bloc. Multi-year frameworks reduce supplier revenue volatility and support capital investment in filling and assembly lines.
- European Union equipment procurement reached EUR 115 billion (2025, EU), increasing 26% over 2024. The shift toward equipment raises the probability that budget expansion converts into ammunition, weapon-system and production-capacity orders.
Inventory Replenishment and Multi-Year Contracting
- The Spanish contract included 60 mm, 81 mm and 120 mm calibers (2024, Spain). Portfolio breadth allows manufacturers to spread qualification costs across several products and increase share of wallet with existing military customers.
- Germany ordered approximately 100,000 rounds of 120 mm ammunition (2023, Ukraine support). Transfer-linked replenishment creates two demand layers, immediate delivery to the recipient and subsequent restocking by the donor government.
- NATO's Defence Production Action Plan was updated in February 2025 (NATO) to accelerate procurement and industrial output. Aggregated requirements provide stronger justification for supplier capacity expansion and long-lead raw-material commitments.
Shift Toward Precision and Extended-Range Effects
- Iron Sting provides a stated range of up to 10 km (2025 product specification), depending on the mortar tube. Extended range increases tactical utility and supports premium pricing for integrated guidance and fuze electronics.
- Saab states that its THOR 120 mm design can deliver almost twice the target-area effect (product specification) of a conventional round. Higher effectiveness per round supports value-based procurement and reduces logistics requirements.
- The United States Army's enhanced 81 mm program targets 120 mm-like range and lethality (2025, United States) in a more portable cartridge. Successful development would expand the premium 81 mm segment and create replacement demand for legacy rounds.
Market Challenges
Energetics and Propellant Capacity Constraints
- EU-backed projects target more than 10,000 tons of additional powder capacity (2024, EU). Existing scarcity can constrain finished-round output even when assembly capacity is available, weakening delivery reliability and increasing working-capital needs.
- Supported projects also target more than 4,300 tons of additional explosives capacity (2024, EU). Mortar producers without vertically secured energetics face allocation risk, volatile input pricing and lower negotiating leverage during surge periods.
- The EU selected 31 investment projects (2024, EU) across explosives, powder, shells, missiles and testing. Distributed investment improves resilience but can intensify competition for skilled process engineers and qualified production equipment.
Qualification, Safety and Regulatory Complexity
- Nammo's 120 mm round lists compatibility with standard smoothbore systems and selected turreted platforms, but qualification remains configuration-specific. Each additional weapon interface can require testing expenditure and extend the time between contract award and full-rate delivery.
- Hirtenberger identifies NATO-qualified 81 mm pyrotechnic variants across multiple payloads. Maintaining separate explosive, smoke and illumination processes raises quality-assurance overhead and increases the cost of low-volume product families.
- EU production grants may fund only 35% to 40% of eligible project costs (2024, EU), depending on the activity. Producers must finance the remaining capital while carrying permitting, qualification and customer-acceptance risk.
Customer Concentration and Procurement Volatility
- Government customers can defer quantities, exercise contract options unevenly or change product specifications. Suppliers dependent on one national program face utilization risk because mortar-production assets have limited civilian-market alternatives.
- A single contract can cover more than 100,000 rounds (2024, Spain), making annual revenue sensitive to tender timing and acceptance milestones. Manufacturers require diversified customer portfolios to stabilize cash conversion.
- NATO operates as an alliance of 32 countries (2025, NATO), but national procurement rules, local-content expectations and export controls remain fragmented. Market access therefore requires country-specific qualification, partnerships and licensing strategies.
Market Opportunities
Precision-Guided Mortar Ammunition
- Guided rounds combine the shell, seeker, guidance electronics and programmable fuze, creating a substantially larger revenue pool per round than conventional high-explosive ammunition.
- Integrated defence-electronics companies, fuze manufacturers and fire-control suppliers benefit because guidance procurement creates recurring software, integration, qualification and lifecycle-support requirements.
- Military customers must integrate designation assets and digital fire control. Iron Sting supports three guidance combinations (product specification), enabling adoption across different battlefield sensing architectures.
Localized Production and Licensed Manufacturing
- Producers can earn licensing, engineering, tooling and long-term component revenue by partnering with governments seeking sovereign filling, assembly and testing capability.
- Regional ammunition manufacturers, state-owned defence groups, energetic-material suppliers and specialized production-equipment providers benefit from localization mandates and industrial participation programs.
- Governments must fund qualification infrastructure and aggregate demand. EU initiatives target 2 million rounds of annual shell capacity by end-2025, illustrating the scale required to justify new production lines.
Multi-Caliber and Interoperable Product Families
- Shared suppliers, propellant technology and quality systems reduce incremental development costs while allowing producers to bid for broader government frameworks.
- Manufacturers with complete high-explosive, smoke, illumination and practice families can capture a larger proportion of customer lifecycle expenditure and improve factory utilization.
- Producers must maintain compatibility with legacy and modern systems. Nammo markets mortar rounds from 60 mm through 120 mm (current portfolio), demonstrating the portfolio breadth required for international tenders.
CHAPTER 9 - Competitive Landscape
Competitive Landscape Overview
The market is moderately concentrated among qualified global and state-backed producers. Entry barriers include energetic-material permits, military qualification, long acceptance cycles, export licensing, specialized filling assets and customer requirements for demonstrated delivery reliability.
Market Share Distribution
Top 5 Players
Market Dynamics
8 new entrants in the past 5 years, indicating strong market attractiveness and growth potential.
Company Name | Market Share | Headquarters | Founding Year | Core Market Focus |
|---|---|---|---|---|
General Dynamics Ordnance and Tactical Systems | - | St. Petersburg, United States | 1997 | 60 mm, 81 mm and 120 mm mortar components, bodies, increments and guided-munition technologies |
Rheinmetall AG | - | Dusseldorf, Germany | 1889 | Complete 60 mm, 81 mm and 120 mm mortar ammunition families and mortar systems |
Elbit Systems Ltd. | - | Haifa, Israel | 1966 | Conventional and precision-guided 120 mm mortar ammunition, guidance kits and integrated systems |
BAE Systems plc | - | London, United Kingdom | 1999 | 81 mm mortar ammunition and development of 120 mm high-explosive, smoke, illumination and practice rounds |
Nammo AS | - | Raufoss, Norway | 1998 | Qualified high-explosive, extended-range, smoke, illumination and practice rounds from 60 mm to 120 mm |
Hirtenberger Defence Europe GmbH | - | Hirtenberg, Austria | - | Integrated 60 mm, 81 mm and 120 mm mortar systems and complete ammunition families |
Saab AB | - | Stockholm, Sweden | 1937 | Advanced 120 mm mortar warheads and enhanced-effect ammunition |
ST Engineering | - | Singapore | 1967 | 60 mm, 81 mm and 120 mm mortar bombs and integrated mobile mortar systems |
MKE Inc. | - | Ankara, Türkiye | 1950 | 60 mm, 81 mm and 120 mm mortar ammunition, weapons, fuzes and energetic components |
Arsenal JSCo. | - | Kazanlak, Bulgaria | 1878 | 60 mm, 81 mm, 82 mm and 120 mm high-explosive, smoke, illumination and practice mortar bombs |
Cross Comparison Parameters
The report provides detailed cross-comparison of key players across 10 performance parameters to identify competitive strengths and weaknesses.
Annual Mortar Round Capacity
Qualified Caliber Breadth
Mortar Order Backlog
Segment EBITDA Margin
Analysis Covered
Market Share Analysis:
Compares supplier positions across calibers, regions, contracts and customers.
Cross Comparison Matrix:
Benchmarks capacity, qualification breadth, backlog strength and profitability indicators.
SWOT Analysis:
Evaluates technology, production resilience, customer access and execution risks.
Pricing Strategy Analysis:
Assesses conventional, advanced-fuze and guided-ammunition pricing architecture by caliber.
Company Profiles:
Reviews product scope, geographic exposure, partnerships and manufacturing capabilities.
CHAPTER 10 - REPORT TOC
Table of Contents
Market Assessment Phase
Supply-side and competitive intelligence covering market sizing, segmentation, competitive dynamics, regulatory landscape, and future forecasts.
Go-To-Market Strategy Phase
15 chapters
Entry strategy evaluation, execution roadmap, partner recommendations, and profitability outlook.
Survey Phase
8 chapters
Demand-side primary research conducted through structured interviews and online surveys with end users across priority metros and Tier 2/3 cities to capture consumption behavior, unmet needs, and purchase drivers.
Complete Report Coverage
201+ detailed sections covering every aspect of the market
143
Assessment Sections
58
Strategy Sections
CHAPTER 11 - Our Approach
Research Methodology
Desk Research
- Mapped global mortar ammunition manufacturers
- Reviewed defence procurement budget documents
- Analyzed contract volumes and calibers
- Assessed guidance and fuze portfolios
Primary Research
- Interviewed ammunition program management directors
- Consulted mortar production plant managers
- Engaged military procurement category leads
- Interviewed energetics supply chain executives
Validation and Triangulation
- Validated findings across 286 respondents
- Reconciled contract and production volumes
- Cross-checked caliber-level price assumptions
- Tested demand against defence budgets
CHAPTER 12 - FAQ
FAQs
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CHAPTER 13 - Related Research
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