Mortar Ammunition Market Outlook

The global mortar ammunition market is projected to reach approximately USD 3.44 billion by 2035, growing at a compound annual growth rate (CAGR) of around 4.5% during the forecast period from 2025 to 2035. The growth of this market can be attributed to the increasing defense budgets of various nations aimed at modernizing military capabilities, the rising geopolitical tensions, and an increasing focus on enhancing artillery systems. Additionally, advancements in manufacturing technology and the development of more effective and precise mortar ammunition types are anticipated to bolster market growth. The need for rapid deployment and effectiveness in combat scenarios further drives the demand for mortar ammunition across various military applications.

Growth Factor of the Market

Several growth factors are driving the mortar ammunition market, primarily stemming from geopolitical instability and military modernization efforts. Nations worldwide are upgrading their defense arsenals, focusing on more advanced and versatile ammunition to ensure strategic superiority. The rise in asymmetric warfare scenarios has also necessitated the production of specialized mortar ammunition capable of addressing diverse combat situations. Furthermore, investments in research and development are leading to innovations in mortar technology, enhancing accuracy and effectiveness while also reducing logistical challenges associated with traditional munitions. The increasing emphasis on joint military exercises and collaborations among nations has led to a greater demand for standardized mortar systems, further fueling market growth. These factors combined create a robust environment for the mortar ammunition market to thrive in the coming years.

Key Highlights of the Market

• The global mortar ammunition market is projected to grow at a CAGR of around 4.5% from 2025 to 2035.
• High-explosive mortar ammunition dominates the market due to its effectiveness in combat.
• North America holds the largest market share, driven by substantial military expenditure.
• The demand for guided mortar ammunition is rising, reflecting advancements in precision munitions.
• The Asia Pacific region is emerging as a significant market due to increasing defense budgets and military modernization efforts.

By Type

High-Explosive Mortar Ammunition:

High-explosive mortar ammunition is the most widely used category in the mortar ammunition market, particularly in combat scenarios due to its lethality and effectiveness against personnel and light vehicles. This type of ammunition is designed to deliver a high explosive payload, making it suitable for various applications, including demolishing enemy fortifications and engaging enemy troops. The advancements in explosive materials have enabled manufacturers to enhance the performance of high-explosive mortars, resulting in improved blast radius and fragmentation patterns. As military strategies evolve, the reliance on high-explosive mortar ammunition remains strong, which continues to drive significant market demand in defense sectors globally.

Smoke Mortar Ammunition:

Smoke mortar ammunition plays a crucial role in modern battlefield tactics, primarily used for screening operations to obscure visibility. This type of ammunition is essential for providing cover during troop movements and protecting forces from enemy fire. The increasing adoption of smoke mortars in military doctrines has spurred market growth, particularly in regions where terrain and visibility significantly impact operational effectiveness. Recent developments in smoke generation technology have improved the performance of these munitions, allowing for quicker deployment and more effective concealment strategies on the battlefield. As a result, the demand for smoke mortar ammunition is expected to continue growing as military operations become more complex and require innovative solutions for tactical advantages.

Illuminating Mortar Ammunition:

Illuminating mortar ammunition is designed to provide illumination for ground troops during night operations or in low-light conditions. This type of ammunition is crucial for enhancing visibility and situational awareness, which are vital for effective military operations. As the frequency of night-time operations increases, so does the demand for illuminating mortars. Recent innovations have focused on improving the light output and duration of illumination, thereby enhancing safety for troops as well as ensuring successful mission outcomes. The ongoing emphasis on joint operations and the integration of advanced technology into military tactics will likely sustain the growth of illuminating mortar ammunition in the global market.

Practice Mortar Ammunition:

Practice mortar ammunition serves as a training tool for military personnel to hone their skills in using mortar systems effectively. This type of ammunition is crucial for ensuring that soldiers are well-prepared for real combat scenarios. As armed forces around the world prioritize training and proficiency, the demand for practice mortar ammunition is increasing significantly. Manufacturers are focusing on creating environmentally friendly practice rounds, which provide realistic training experiences without causing significant ecological impact. The growing recognition of the importance of comprehensive training programs is expected to drive the practice mortar ammunition market in the forthcoming years, ensuring that personnel are adequately equipped for actual combat situations.

Guided Mortar Ammunition:

Guided mortar ammunition represents one of the most advanced segments within the mortar ammunition market, aimed at enhancing accuracy and reducing collateral damage in combat situations. The integration of guidance systems allows for improved targeting capabilities, making it a preferred choice for modern militaries. With rising concerns over precision in military engagements, the demand for guided mortars is expected to grow significantly. The technological advancements in miniaturization of guidance systems and improved aerodynamics are making guided mortars more accessible and effective. As military forces increasingly adopt precision-guided munitions to enhance operational effectiveness, the guided mortar ammunition segment is likely to witness robust growth in the coming years.

By Caliber

60mm:

60mm mortar ammunition is primarily used for close support and is favored by many military units due to its lightweight and portability. This caliber is ideal for infantry units, allowing for rapid deployment and effective engagement of enemy forces at shorter ranges. The simplicity of 60mm mortars makes them easily operable in diverse environments, contributing to their continued popularity. Additionally, recent developments in 60mm ammunition technology have improved accuracy and explosive effectiveness, ensuring that this caliber remains relevant in modern military operations. Its versatility is expected to sustain market demand, particularly in asymmetric warfare scenarios where mobility and rapid response are essential.

81mm:

The 81mm caliber mortar ammunition strikes a balance between portability and firepower, making it a common choice among various armed forces worldwide. This caliber is often employed in indirect fire support roles, providing significant firepower while still being manageable for infantry units. The advancements in 81mm mortar technology, particularly in the areas of fuzing and projectile design, have enhanced both its lethality and accuracy. As global military operations become more dynamic, the need for versatile munitions like the 81mm mortar is expected to remain strong, thus supporting its consistent presence in the market.

82mm:

Similar to the 81mm variant, 82mm mortar ammunition is also popular among many military forces for its effective balance of range and firepower. This caliber is widely used for both direct and indirect fire support, making it versatile for various combat scenarios. The 82mm mortars can engage targets at greater distances compared to the 60mm and 81mm variants, providing tactical flexibility. Improvements in ammunition design and production methodologies have led to enhancements in both performance and reliability. As military engagement strategies evolve, the demand for 82mm mortar ammunition is expected to increase, driven by its effectiveness in diverse operational environments.

120mm:

The 120mm caliber mortar ammunition is among the most potent types available, designed for heavy support roles in military operations. This caliber is typically utilized by mechanized and armored units and is known for its substantial explosive power, capable of engaging fortified positions effectively. The advancements in 120mm technology have focused on improving range and accuracy, ensuring that this ammunition maintains its effectiveness in modern warfare. With increasing military engagements requiring high firepower and precision, the demand for 120mm mortar ammunition is projected to grow, supported by trends toward modernization and enhanced combat capabilities.

Others:

This segment includes various other calibers of mortar ammunition that cater to specialized military needs. While these calibers may not dominate the market, they serve specific applications where conventional calibers may not be as effective. The development of niche calibers allows armed forces to tailor their ammunition to particular operational requirements, enhancing overall combat effectiveness. The continuous demand for specialized solutions is expected to keep this segment relevant, as militaries seek to consolidate their arsenals with varied options for different combat scenarios.

By Range

Short Range Mortar Ammunition:

Short range mortar ammunition is specifically designed for engagements within close proximity, often utilized in urban warfare and direct troop support scenarios. This type of ammunition facilitates rapid response to immediate threats, providing infantry units with a vital tool for close combat situations. The increasing prevalence of urban warfare globally has heightened the demand for short range mortars, as they allow for effective engagement of targets without the need for lengthy logistical support. As military doctrines evolve to accommodate more immediate tactical needs, the market for short range mortar ammunition is expected to experience significant growth.

Medium Range Mortar Ammunition:

Medium range mortar ammunition serves as a bridge between short range and long range options, providing tactical flexibility for ground forces. This type of ammunition is suitable for various combat situations, allowing for effective engagement of both stationary and moving targets. As military operations become more complex, the versatility offered by medium range mortars becomes increasingly valuable. The advancements in medium range ammunition have focused on improving accuracy and consistency, ensuring that military forces can rely on these munitions to achieve operational goals effectively. The ongoing demand for adaptable solutions is expected to sustain the growth of medium range mortar ammunition in the market.

Long Range Mortar Ammunition:

Long range mortar ammunition is designed for maximum reach and is primarily utilized in heavy artillery roles. This type of ammunition allows for engaging targets at significant distances, providing critical support for frontline troops. As the emphasis on precision strikes and reduced collateral damage has grown, advancements in long range mortar technology have focused on enhancing accuracy and reliability. The integration of modern guidance systems into long range mortars has further increased their effectiveness, making them an attractive option for military forces looking to enhance their artillery capabilities. Consequently, the long range mortar ammunition market is poised for growth as militaries adapt to new warfare strategies focused on reach and precision.

By Fuzing Type

Impact Fuzed Mortar Ammunition:

Impact fuzed mortar ammunition is designed to detonate upon impact with the target, making it suitable for direct fire engagements. This simple yet effective fuzing mechanism ensures reliability and ease of use, especially in combat situations where timing is critical. The demand for impact fuzed mortars is sustained by their effectiveness in delivering high explosive payloads directly to the target, making them a preferred choice among military forces for conventional warfare scenarios. As manufacturers continue to enhance the performance of impact fuzed ammunition, the segment is expected to witness steady growth within the broader mortar ammunition market.

Time Fuzed Mortar Ammunition:

Time fuzed mortar ammunition is engineered to detonate after a specified delay, allowing for strategic engagement of targets in various combat scenarios. This type of fuzing is particularly advantageous for engaging targets in trenches or for creating a lethal blast radius over a wider area. The flexibility offered by time fuzed mortars makes them essential in many military operations, especially in dynamic combat environments. Ongoing technological advancements have led to improvements in the precision and reliability of time fuzes, bolstering the appeal of this segment within the mortar ammunition market as military forces increasingly seek effective solutions for diverse operational needs.

Proximity Fuzed Mortar Ammunition:

Proximity fuzed mortar ammunition utilizes advanced fuzing technology to detonate when in proximity to the target, instead of relying on direct impact. This type of fuzing is particularly effective for engaging aerial targets or creating a lethal effect over a broader area, making it vital in modern warfare. The continued development of proximity fuzes has improved their reliability and effectiveness, contributing to the rising demand for this type of mortar ammunition in military applications. As armed forces continue to adapt to evolving threats, the market for proximity fuzed mortar ammunition is expected to grow, driven by the need for innovative solutions to complex combat challenges.

Electronic Fuzed Mortar Ammunition:

Electronic fuzed mortar ammunition represents the cutting edge of fuzing technology, allowing for precise control over detonation timing and conditions. This advanced fuzing system enhances the accuracy and effectiveness of mortar rounds, making them highly desirable for modern artillery applications. The integration of electronic fuzes into mortar ammunition allows for programmable detonation, which can be tailored to specific combat scenarios, thereby increasing operational flexibility. As militaries increasingly prioritize precision and effectiveness in engaging targets, the demand for electronic fuzed mortar ammunition is expected to rise significantly, making it a key segment in the future of the mortar ammunition market.

Point-Detonating Fuzed Mortar Ammunition:

Point-detonating fuzed mortar ammunition detonates upon contact with the target, ensuring immediate impact and effectiveness. This type of fuzing is essential for conventional artillery operations where rapid and effective engagement is required. The reliability and simplicity of point-detonating fuzes make them a staple in many military arsenals worldwide. As the need for straightforward and reliable munitions remains constant, the demand for point-detonating fuzed mortar ammunition is expected to continue growing, forming a vital part of the overall mortar ammunition market.

By Region

The global mortar ammunition market is highly segmented based on regional dynamics, with North America leading the charge in terms of market share, primarily due to substantial defense spending by the United States military. In 2022, the North American region accounted for approximately 40% of the total mortar ammunition market, reflecting a robust investment strategy aimed at modernizing and expanding artillery capabilities. The U.S. military's focus on advanced technologies and precision-guided munitions has fostered a favorable environment for the growth of various mortar ammunition types, including guided and high-explosive variants. The increasing participation of North American defense contractors in international military collaborations further cements the region's dominance in the global market.

Europe follows closely, accounting for approximately 30% of the global mortar ammunition market share in 2022. The ongoing tensions in Eastern Europe, particularly the conflict involving Russia and Ukraine, have led to increased military expenditures across European nations. Countries like Germany, France, and the United Kingdom are ramping up their investments in defense capabilities, with particular emphasis on upgrading artillery systems. The European region's commitment to enhancing joint military operations and multinational exercises is expected to drive further demand for various types of mortar ammunition, including both conventional and specialized options. The forecasted CAGR for the European market is around 4.0%, indicating significant growth potential amidst the shifting geopolitical landscape.

Opportunities

The mortar ammunition market is poised for several opportunities driven by advancements in technology and changing military requirements. The continuous push for modernization of military forces worldwide is creating a demand for innovative mortar systems that incorporate advanced features such as precision guidance and improved fuzing mechanisms. As armed forces increasingly prioritize accurate and reliable munitions, manufacturers are presented with opportunities to develop next-generation mortar ammunition that meets these demands. Additionally, the rising focus on counter-terrorism and asymmetric warfare has spurred interest in specialized mortar rounds that can effectively address unique operational challenges. This creates significant market potential for companies looking to offer tailored solutions that enhance operational effectiveness in varied scenarios.

Furthermore, as global defense budgets continue to rise, there is an opportunity for manufacturers to expand their product portfolios and explore new markets. Emerging economies in the Asia Pacific and Latin America regions are beginning to invest more heavily in their military capabilities, which opens up avenues for growth for mortar ammunition suppliers. By establishing strategic partnerships and collaborations with local defense contractors, companies can gain access to these burgeoning markets and enhance their competitive positioning. The ongoing emphasis on joint military exercises and international cooperation among nations also provides an opportunity for the standardization of mortar systems and ammunition, creating a favorable environment for industry growth. As these trends continue, the mortar ammunition market is likely to witness robust developments in the coming years.

Threats

While the mortar ammunition market presents numerous growth opportunities, it is not without its threats. One of the primary concerns is the increased regulatory scrutiny surrounding the production and sale of military munitions. Governments worldwide are implementing stricter export controls and regulations pertaining to arms sales, which can restrict market access and limit the growth potential for manufacturers. Additionally, the rising trend of global disarmament and peacekeeping initiatives may lead to reduced military spending in certain regions, impacting overall demand for mortar ammunition. The potential for geopolitical stability in various parts of the world could also result in decreased investment in defense capabilities, thereby posing a threat to market growth.

Moreover, advancements in alternative warfare technologies, such as drones and cyber warfare, may overshadow the traditional reliance on mortar ammunition in armed conflicts. As military strategies evolve to incorporate new technologies, the demand for conventional mortar systems may face challenges. The increased focus on electronic warfare and other non-kinetic forms of engagement may divert attention and resources away from traditional artillery, thus posing a threat to the mortar ammunition market. Consequently, manufacturers must adapt to these changing dynamics and explore avenues for innovation to maintain their relevance in the defense sector.

Competitor Outlook

• BAE Systems
• General Dynamics
• Rheinmetall AG
• Northrop Grumman Corporation
• Textron Systems
• Elbit Systems
• Olin Corporation
• Thales Group
• Hanwha Defense
• Denel Soc Ltd
• Nammo AS
• Leonardo S.p.A.
• Saab AB
• Soltam Systems Ltd.
• IMI Systems

The competitive landscape of the mortar ammunition market is characterized by a mix of established defense contractors and emerging players striving to gain a foothold in this specialized segment. Major companies like BAE Systems and General Dynamics dominate the market through their extensive product portfolios, technological innovations, and long-standing relationships with governments and military agencies. These companies invest heavily in research and development to remain at the forefront of advancements in mortar technology, ensuring that they can meet the evolving demands of military operations. Their capabilities in providing integrated artillery solutions, including mortar systems and associated ammunition, further reinforce their competitive edge in the market.

In addition to established players, several smaller and emerging companies are trying to carve out niches within the mortar ammunition market. Companies like Nammo AS and IMI Systems are focusing on developing specialized ammunition tailored to unique operational requirements, such as guided and precision munitions. By leveraging innovative technologies and establishing partnerships with local defense manufacturers, these companies aim to enhance their market presence and cater to the increasing demand for advanced mortar solutions. The competitive dynamics are shifting as these players introduce new products and solutions aimed at addressing specific challenges faced by modern military forces.

The ongoing trends toward military modernization and increased defense spending globally are creating a favorable environment for the growth of the mortar ammunition market. As defense budgets continue to rise, established players and emerging companies alike are likely to benefit from increased procurement of mortar systems and associated ammunition. Strategic partnerships, collaborations, and mergers and acquisitions are expected to play a crucial role in shaping the competitive landscape as companies seek to expand their capabilities and gain access to new markets. As the market evolves, companies that can innovate and adapt to changing military requirements are likely to emerge as leaders in the mortar ammunition space.