The main features of mortar weapon systems have remained the same for almost a century and probably that makes them less appealing compared to other areas of the defence market. However, they are gaining a renewed interest due to their integration on armoured and light vehicles, to provide networked operations, mobility and protection against threats found in high-intensity warfare environments.
The combined mortar systems and ammunition market are projected to grow to US$25.67 billion by 2032, with a CAGR of close to 3%.The ammunition market itself is undergoing a period of fundamental changes due to the amount of ammunition used in Ukraine, which stressed the lack of preparedness on behalf of major industrial players to address the intense requirements of a large-scale conventional warfare.
Countries, organizations, and the EU are investing political and economic capital to quickly shift production and assets towards the war effort. Despite the cooperative effort and strong cooperation in certain cases, states tend to maintain independent production lines of mortar systems and ammunition as national interest is always at the core of their economic and defence policy planning.
Although the industrial consolidation will be a challenge, both NATO and the EU, or countries with common interests, still have an incentive to cooperate through common procurement. Offering the opportunity for economies of scale and long-term investment, joint procurement can increase the viability of industries and shield them from the economic and political risks that lie ahead.
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Report Code: | MF231905 |
Published: | November 27, 2023 |
Pages: | 143 (A4) |