Weapon & Ammunition Manufacturing in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: June 2024
SIC C25.400Revenue
£3.5bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
13,795
Businesses
105
Wages
£X.Xbn
Weapon & Ammunition Manufacturing in the UK industry analysis
The lion's share of weapons and ammunition purchased by the UK comes from the UK Defence sector and allied militaries, making domestic and international defence budgets the primary driver of industry revenue, typically increasing during escalating geopolitical tensions. Between 2011 and 2020, the Middle East was the leading export destination for UK arms sales, followed by the US, according to the UK Defence and Security Export Statistics. In 2022, £2.7 billion worth of UK arms were exported to Qatar, while £1.1 billion went to Saudi Arabia, according to the Campaign Against Arms Trade (CAAT). The US dominated export UK exports in 2023.<br />Since February 2022, the MoD has pledged approximately £7.6 billion in military assistance to Ukraine, with the majority coming from its stock. However, as supply levels run low, they need to be replaced, boosting demand for manufacturers. Other countries in the EU and NATO have expanded their military spending in response to the Russian aggression, with a UK-based missile maker, MBDA, signing a £1.9 billion military goods export contract with Poland in April 2023. Over the five years through 2024-25, weapon and ammunition manufacturers' revenue is forecast to inch upward at a compound annual rate of 1.3% to reach £3.5 billion. Over 2024-25, industry revenue is expected to climb by 1.1%, fuelled by a £3 billion hike in MoD military assistance for Ukraine, filtering down to higher weapons and ammunition spending. <br />Over the five years through 2029-30, manufacturers' revenue is forecast to climb at a compound annual rate of 2.9% to reach £4.1 billion. UK parliament announced in April 2024 that UK defence spending will reach £87.1 billion at the end of the decade – raising the armed forces' budget to 2.5% of GDP by 2030. The armed forces are transitioning from a close battle oriented to a deep battle focus, doubling the proportion of the deployable force that can use long-range, precision fires, supporting sales of heavy ammunition. Similarly, Saudi Arabia looks set to continue as a key export destination for UK-manufactured arms, with the High Court dismissing a challenge presented to them by CAAT.
Trends and Insights
- The focus on future warfare shapes industry demands. The UK's Future Soldier plan, which prioritises long-range artillery and technology, influences the kind of military equipment produced by sector manufacturers.
- The MoD is boosting its ammunition and heavy arms stockpiles. This increase comes in response to current global conflicts and the aim to strengthen the UK's armed forces capabilities - significantly affecting the industry.
- The South East appeals to weapon manufacturers with its skilled workforce. Major companies like BAE Systems invest in the region thanks to its proximity to naval ports and access to a highly qualified workforce in London.
- Competition encourages innovation in the industry. To bag significant contracts, manufacturers need to continuously adapt their products to the latest technology and strategic needs.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated £3.5bn in 2024.
Trends and Insights
The MoD replenishes its weapon and ammunition stock
- Following Russia's invasion of Ukraine in February 2022, the UK has committed £7.6 billion in military assistance to Ukraine—£2.3 billion in 2022-23, £2.3 billion in 2023-24 and £3 billion in 2024-25.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The UK is rolling out its Future Soldier and MoD Equipment plans, supporting revenue
- Billed as the most radical transformation of the British Army in 20 years, the Future Soldier plan details how the armed forces will look over the coming years. Starting in November 2021, an additional £8.6 billion will be allocated for Army equipment in 10 years following.
Biggest companies in the Weapon & Ammunition Manufacturing in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
BAE Systems plc | 1,523.2 | |
Leonardo UK Ltd | 197.4 | |
Raytheon Systems Ltd | 135.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Small arms ammunition , Heavy arms ammunition and ordinance and Small arms. Small arms ammunition is the largest segment of the Weapon & Ammunition Manufacturing in the UK.
Trends and Insights
The MoD is restocking its heavy arms and ordinance supplies
- Heavy arms include military-grade weaponry like aircraft and antiaircraft artillery, anti-tank rockets, cannons, field artillery, gun turrets, howitzers, mortars, naval artillery, tampions, line-throwing guns, tank artillery, torpedo tubes and flamethrowers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Military Fighting Vehicle Manufacturing in the UK
Complementors
- Explosives Manufacturing in the UK
- Shipbuilding in the UK
- Aircraft, Engine & Parts Manufacturing in the UK
International industries
- Global Military Shipbuilding & Submarines
- Global Military Aircraft & Aerospace Manufacturing
- Guns & Ammunition Manufacturing in the US
- Weapons & Ammunition Manufacturing in Germany
Table of Contents
About this industry
Industry definition
Companies in the Weapon and Ammunition Manufacturing industry manufacture heavy weapons, small arms, spring air and gas weapons, pistols and war ammunition, including hunting firearms and explosive devices, as well as numerous parts and accessories.
What's included in this industry?
Heavy arms ammunition and ordinanceSmall arms ammunitionSmall armsCompanies
BAE Systems plcLeonardo UK LtdRaytheon Systems LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
ARTILLERY SHELLMILITARY GRADE WEAPONSRECOIL MECHANISMCAATIndustry Code
SIC 25.40 - Weapon & Ammunition Manufacturing in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The focus on future warfare shapes industry demands. The UK's Future Soldier plan, which prioritises long-range artillery and technology, influences the kind of military equi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The MoD is boosting its ammunition and heavy arms stockpiles. This increase comes in response to current global conflicts and the aim to strengthen the UK's armed forces capa...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The South East appeals to weapon manufacturers with its skilled workforce. Major companies like BAE Systems invest in the region thanks to its proximity to naval ports and ac...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition encourages innovation in the industry. To bag significant contracts, manufacturers need to continuously adapt their products to the latest technology and strategi...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
BAE Systems leads the weapon and ammunition industry. Its dominance is due to ongoing strategic acquisitions, investment in production capabilities, and a surge in European d...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of BAE Systems plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Leonardo UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Raytheon Systems Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for BAE Systems plc, and factors influencing its performance in the industry
- Description and key data for Leonardo UK Ltd, and factors influencing its performance in the industry
- Description and key data for Raytheon Systems Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Firearms Act 1968 heavily impacts weapon manufacturing in the UK. This legislation governs the possession and sale of arms, pressing the industry to adhere to strict standard...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Long-term contracts in the industry stabilise profitability. These agreements with entities like the MoD and international governments stabilise earnings by reducing volatili...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom in 2024?
The market size of the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom is £3.5bn in 2024.
How many businesses are there in the Weapon & Ammunition Manufacturing in the UK industry in 2024?
There are 105 businesses in the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom, which has grown at a CAGR of 0.8 % between 2019 and 2024.
Has the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom has been growing at a CAGR of 1.3 % between 2019 and 2024.
What is the forecast growth of the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Weapon & Ammunition Manufacturing in the UK market in United Kingdom?
The biggest companies operating in the Weapon & Ammunition Manufacturing market in United Kingdom are BAE Systems plc, Leonardo UK Ltd and Raytheon Systems Ltd
What does the Weapon & Ammunition Manufacturing in the UK in United Kingdom include?
Heavy arms ammunition and ordinance and Small arms ammunition are part of the Weapon & Ammunition Manufacturing in the UK industry.
Which companies have the highest market share in the Weapon & Ammunition Manufacturing in the UK in United Kingdom?
The company holding the most market share in United Kingdom is BAE Systems plc.
How competitive is the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom?
The level of competition is moderate and steady in the Weapon & Ammunition Manufacturing in the UK industry in United Kingdom.
