Professionals 244 Users Online

Latin America Ammunition Market

Latin America Ammunition Market Size, Share and Growth Forecast by Ammunition Type (Small Caliber, Medium Caliber, Large Caliber, Mortar and Artillery Ammunition), by End User (Civilian, Military), and by Country for 2024-2031

PMR Foresees the Latin American Market for Ammunition will Sustain in Long Term, Given the Rising Defense Budgets, and Increasing Civilian Demand for Firearms.

Latin America Ammunition Market Size and Share Analysis

The global Latin America ammunition market is estimated to reach US$20.9 Bn by the end of 2031, up from US$17.7 Bn estimated in 2024. The market is expected to secure a CAGR of 2.4% in the forecast years, from 2024 to 2031.

Market Attributes

Key Insights

Latin America Ammunition Market Size (2024E)

US$17.7 Bn

Projected Market Value (2031F)

US$20.9 Bn

Projected Growth Rate (CAGR 2024 to 2031)


Historical Growth Rate (CAGR 2019 to 2024)


Sample Report

FREE Report Sample is Available

In-depth report coverage is now just a few seconds away

Download PDF Get FREE Report Sample

Market Introduction and Trend Analysis

The Latin America ammunition market is shaped by a variety of factors, including regional security needs, defense modernization programs, and rising civilian demand for recreational shooting and hunting. Governments in the region are increasingly investing in upgrading their military capabilities, which sustains the demand for advanced ammunition.

Additionally, geopolitical tensions, and internal security challenges further bolster the need for a steady supply of high-quality ammunition. Key players in the market are focusing on innovation, and the development of technologically advanced products to meet the diverse needs of military and civilian end users.

In parallel, there is a growing awareness and focus on sustainable practices within the industry. Manufacturers are exploring eco-friendly materials, and production processes to minimize the environmental impact of ammunition production.

The ammunition industry in Latin America is beginning to adopt green technologies. This includes the development of lead-free bullets, and the utilization of biodegradable materials, appealing to environmentally conscious consumers and aligning with global sustainability trends.

Historical Growth and Course Ahead

The Latin America ammunition market has been influenced significantly by government policies and regulations. Governments in the region have prioritized defense and security, leading to substantial investments in military modernization and procurement of advanced ammunition.

Governmental support has driven the replacement of outdated ammunition stockpiles with modern, more efficient versions, mirroring the trend seen in the Ammunition market, where regulations mandate the adoption of energy-efficient systems. Additionally, the increasing need for internal security, and law enforcement has further bolstered the market.

The Latin America ammunition market is expected to continue its growth trajectory, driven by technological advancements, and evolving security challenges. The rising trend suggesting a growing market for civilian ammunition use in recreational shooting and hunting. This combination of factors positions the Latin America ammunition market for sustained growth and development in the coming years.

Key Trends and Innovations Shaping Market

  • Smart bullets and guided munitions enhance military operation accuracy.
  • Focus grows on non-lethal options for law enforcement.
  • Increasing production of environmentally sustainable, lead-free ammunition addresses ecological concerns.
  • Growing demand for customized ammo for recreational shooting and hunting.
  • Expansion via alliances, joint ventures enhance manufacturing and market reach.

Latin America ammunition market witnesses increasing adoption of advanced technology for improved precision and efficiency in military applications, such as smart bullets, and guided munitions. The rise in civilian shooting sports, and recreational activities is driving demand for specialized ammunition. There is also a growing emphasis on non-lethal ammunition for law enforcement and crowd control, aligning with international human rights standards.

Additionally, local manufacturers are focusing on eco-friendly, especially lead-free ammunition to address environmental concerns. Innovations in manufacturing processes and materials are enhancing the performance and reliability of ammunition, while strategic partnerships and collaborations are expanding market reach and capabilities.

Custom Report Cover

Make This Report Your Own

Take Advantage of Intelligence Tailored to your Business Objective

> Get a Customized Version

Key Growth Drivers

Military Modernization, and Advanced Ammunition Procurement

Military modernization, and advanced ammunition procurement are the critical drivers of the Latin America ammunition market. Governments across the region are increasingly prioritizing the modernization of their military forces to address evolving security challenges. This involves updating and replacing outdated ammunition stockpiles with more advanced and efficient options to enhance combat readiness and operational capabilities.

The procurement of advanced ammunition is a part of broader defense strategies aimed at improving the effectiveness of military operations. Advanced ammunition offers greater precision, reliability, and lethality, which are essential for modern warfare. This shift is also driven by the need to counter sophisticated threats, such as terrorism and organized crime, which require more capable and versatile ammunition solutions.

Furthermore, international defense collaborations, and technology transfers are facilitating access to cutting-edge ammunition technologies. These initiatives enable Latin American countries to adopt the latest advancements in ammunition, ensuring their military forces remain competitive and well-equipped. As a result, the ongoing military modernization efforts and the strategic procurement of advanced ammunition are expected to continue driving the growth of the Latin America ammunition market.

Internal Security Loopholes, and Law Enforcement Needs

The region faces various internal security challenges, including drug trafficking, organized crime, and social unrest. To effectively address these issues, governments are investing heavily in law enforcement capabilities, including the procurement of modern ammunition. Enhancing the firepower and efficiency of police and security forces is crucial for maintaining public order and safety.

Modern ammunition provides law enforcement with improved accuracy and reliability, which is essential for effective operations. This need for advanced ammunition is particularly acute in urban areas where law enforcement must deal with complex and often violent situations.

Moreover, special task forces, and counter-terrorism units require specialized ammunition to handle high-risk operations. This includes non-lethal ammunition for crowd control, as well as high-precision rounds for critical missions. By equipping law enforcement agencies with a diverse range of advanced ammunition, governments aim to enhance their ability to respond to various security threats, thereby driving demand in the Latin America ammunition market.

Market Research Methodology

Market Research Methodology

-Perfect through Years of Diligence

Check Research Methodology

Factors Impeding the Market Growth

Economic Instability, and Budget Constraints

Governments facing fiscal challenges may prioritize spending on essential services over defense and security. Tight budgets limit investment in military modernization programs, and ammunition procurement, thereby leading to reduced demand. Additionally, currency fluctuations and inflation can further strain purchasing power, ultimately impacting the affordability of ammunition acquisitions.

International Trade Restrictions, and Sanctions

Embargoes and arms control agreements limit the import and export of ammunition, hindering market access for manufacturers, and distributors. Additionally, diplomatic tensions, and geopolitical conflicts can lead to trade disruptions and sanctions, further restricting the flow of ammunition, thus impeding market growth in the region.

Sales Team

Sales Team
Client Partner

Let's Connect

Connect me to identify winning opportunities

Ask An Expert
I'm Available

Future Opportunities for the Latin American Ammunition Companies

Expansion of Civilian Shooting Sports Market

The expansion of the civilian shooting sports market presents a significant future opportunity for Latin America ammunition companies. As interest in recreational shooting grows across the region, there is a corresponding increase in demand for ammunition among civilian enthusiasts.

Latin America's diverse landscapes offer ample opportunities for outdoor shooting activities, driving the need for a wide range of ammunition products catering to various shooting disciplines and preferences.

By tapping into this expanding market segment, ammunition companies can diversify their customer base and revenue streams. Offering specialized ammunition tailored to different shooting sports, such as target shooting, hunting, and competitive shooting events, can position companies for success in the burgeoning civilian market.

Development of Non-Lethal Ammunition Solutions

Latin American ammunition companies can capitalize on the growing demand for non-lethal solutions in security. Law enforcement's shift towards minimizing casualties creates a market for pepper balls, rubber bullets, and other tools for control with less risk of fatality. This aligns with human rights standards, enhancing companies' reputations and attracting new clients like law enforcement and humanitarian organizations.

Category-wise Analysis


Projected CAGR through 2031

Product Category – Fire tube boiler


End-user – Below 24 kW


Military Segment to Account for the Lion’s Share

The military segment of the market is expected to record the highest CAGR during the forecast period. Despite the economic crisis and social and political upheaval, this region has been fortifying its military front over time, placing a heavy emphasis on military spending. Brazil, and Mexico are two of the main contributors to the increase in military spending in the area.

Latin American governments may create a need for ammunition and weapon systems as a result of their acquisitions of airplanes, armored vehicles, and naval vessels. In addition, the border disputes between the US, and Mexico and the nation's continuous war on drugs are driving up demand for ammunition among local special forces and border security personnel.

Small Ammunition to Grow Notably

Small ammunition dominates the market, with a 5.8% CAGR. Its increasing popularity stems from several factors. Small ammunition finds extensive civilian use, including recreational shooting, hunting, and personal defence, owing to its affordability and accessibility.

Additionally, it serves as a cornerstone in military and law enforcement operations, benefitting from NATO caliber standardization and widespread use in rifles and handguns. Furthermore, its adaptability to diverse operational contexts solidifies its status as the primary ammunition type for armed forces.

Region-wise Analysis


CAGR through 2034





Brazil Tops with the Largest Defense Budget

In 2023, Brazil dominated the Latin American ammunition market, boasting the largest defense budget in the region, accounting for over 51% of total military expenditure of Latin America.

With total defense spending of US$9.9 Bn in 2023, Brazil emerged as the leading ammunition exporter in Latin America, capturing 85% of the market share. This growth trajectory was further bolstered by a significant increase in arms exports, jumping up from US$81 Mn in 2018 to US$153 Mn in 2023.

Brazil's decision to relax stringent gun laws through a decree in 2023 aimed to facilitate easier access to firearms, and ammunition for civilians. This initiative, which raised the annual cartridge purchase limit from 50 to 5,000, alongside provisions for increased gun ownership, aimed to foster a more competitive ammunition market, benefiting both local players like IMBEL, and CMC, as well as international manufacturers, positioning Brazil for substantial market growth in the forecast period.

Competitive Landscape Analysis

The Latin America ammunition market features a competitive landscape characterized by a mix of domestic and international players. Key companies such as IMBEL, and CMC dominate the market alongside global manufacturers.

Intense competition is driven by factors such as technological innovation, product diversification, and pricing strategies. Market players focus on expanding their product portfolios and enhancing distribution networks to maintain their competitive edge.

Top Industry Players Profiled

  • CBC Defense
  • Aguila Ammunition
  • Magtech Ammunition

Recent Developments in the Latin America Ammunition Market

  • In September 2022, Aguila Ammunition launched the 9mm, 124 grain Jacketed Hollow Point (JHP), which claims to be the right choice for those seeking accurate ammunition for defense purposes.
  • In December 2021, FAMAE unveiled the technological demonstrator of the 122 mm Rocket Launch System, as a part of the project GDD René Echeverría.

Latin America Ammunition Market - Report Scope & Segmentation



Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Billion for Value

Key Regions Covered

  • Mexico
  • Brazil
  • Argentina
  • Chile
  • Rest of Latin America

Key Market Segments Covered

  • Ammunition Type
  • End User
  • Countries

Key Companies Profiled in the Report

  • CBC Defense
  • Aguila Ammunition
  • Magtech Ammunition

Report Coverage

  • Market Forecast and Trends
  • Company Share Analysis
  • Competitive Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Latin America Ammunition Market Segmentation

By Ammunition Type

  • Small Caliber
  • Medium Caliber
  • Large Caliber
  • Mortar and Artillery Ammunition

By End User

  • Civilian
  • Military

By Country

  • Mexico
  • Brazil
  • Argentina
  • Chile
  • Rest of Latin America

- Companies Covered in This Report -

- Frequently Asked Questions -

Increased military spending, civilian shooting sports growth, and security concerns, particularly along the US-Mexico border, are some of the key factors that drive Latin America's ammunition demand.

Some of the key players operating in the market are CBC Defense, FAMAE, Aguila Ammunition, IMBEL and OPTIC-CAVIM.

The military segment records a significant market share by end user.

The expansion of civilian shooting sports market will present opportunities for the market players.

Brazil is likely to account for a significant share of the market.

This site uses cookies, including third-party cookies, that help us to provide and improve our services. Privacy Policy
Google translate