Global 155mm Artillery Shell Market 2025-2035

The artillery shell market is valued at an estimated USD 3.69 billion in 2025 and is projected to grow to USD 5.56 billion by 2035, registering a Compound Annual Growth Rate (CAGR) of 4.19% over the forecast period.

Introduction to 155mm Artillery Shell Market:

The 155mm artillery shell market is a crucial segment of the global defense industry, playing a pivotal role in modern warfare. Artillery systems are fundamental to military operations, providing indirect fire support, suppressing enemy forces, and enhancing battlefield effectiveness. The 155mm caliber is widely used due to its balance of range, firepower, and adaptability to various types of munitions, including high-explosive, smoke, illumination, and precision-guided shells.

The market for 155mm artillery shells is experiencing significant growth due to rising defense budgets, modernization programs, and geopolitical tensions that drive military procurements. Nations worldwide are increasingly investing in advanced artillery systems to enhance their land warfare capabilities. This has led to increased research and development efforts focusing on improving range, accuracy, lethality, and interoperability with modern digital and networked warfare systems.

Moreover, the demand for smart and guided artillery shells is surging, with leading defense companies working on precision-strike capabilities that minimize collateral damage while maximizing effectiveness. This growing emphasis on technological advancements, alongside ongoing global conflicts and regional security concerns, continues to shape the 155mm artillery shell market dynamics.

Technology Impact in 155mm Artillery Shell Market

Technological advancements have significantly transformed the 155mm artillery shell market, with a focus on enhancing accuracy, range, and lethality. The integration of GPS-guidance, advanced propulsion systems, and smart fuzes has revolutionized modern artillery capabilities.

1. Precision-Guided Munitions (PGMs): One of the most notable advancements in the 155mm artillery shell market is the development of PGMs, such as the U.S. Army's Excalibur and other guided shells. These munitions use GPS and inertial navigation systems (INS) to achieve pinpoint accuracy, reducing the need for mass bombardments and minimizing collateral damage.

2. Extended Range Artillery: The demand for extended-range shells has led to innovations like rocket-assisted projectiles (RAP) and ramjet-powered shells. These enhancements allow artillery to strike targets at distances exceeding 70 km, significantly extending the battlefield reach of land forces.

3. Multi-Effect and Programmable Fuzes: Modern artillery shells incorporate advanced fuzing mechanisms, such as airburst, proximity, and delay fuzes, allowing greater flexibility in engaging different targets. This adaptability enhances effectiveness against personnel, armored vehicles, and fortifications.

4. Autonomous and AI-Enabled Fire Control Systems: The integration of artificial intelligence and machine learning into artillery fire control systems has improved targeting accuracy and response times. These systems analyze battlefield data in real-time to optimize artillery fire missions, enhancing operational effectiveness.

5. Electromagnetic and Ramjet Propulsion: Emerging technologies like electromagnetic railguns and ramjet propulsion systems hold the potential to revolutionize artillery warfare, promising even longer ranges and higher projectile speeds.

These technological advancements have made 155mm artillery shells more versatile and lethal, aligning with the modern battlefield's requirements for precision, efficiency, and adaptability.

Key Drivers in 155mm Artillery Shell Market

Several factors are propelling the growth of the 155mm artillery shell market, including geopolitical conflicts, military modernization, and increasing investments in advanced defense systems. The key drivers include:

1. Rising Geopolitical Tensions: Ongoing conflicts and territorial disputes in regions such as Eastern Europe, the Middle East, and the Asia-Pacific have fueled demand for advanced artillery systems. Nations are enhancing their artillery capabilities to maintain deterrence and counter potential threats.

2. Defense Modernization Programs: Many countries are investing in the modernization of their armed forces, replacing aging artillery systems with advanced 155mm howitzers and guided munitions. Programs like the U.S. Army's Extended Range Cannon Artillery (ERCA) and European artillery initiatives drive market growth.

3. Focus on Precision and Reduced Collateral Damage: The shift toward precision-guided artillery shells has accelerated as militaries seek to improve targeting accuracy while minimizing unintended damage. This has led to significant investments in GPS-guided and AI-enhanced munitions.

4. Joint and Coalition Military Operations: The need for interoperability among allied forces has driven demand for standardized 155mm artillery systems, ensuring seamless coordination in multinational operations.

5. Growing Defense Budgets: Many countries have increased their defense spending to counter emerging security threats, with a significant portion allocated to artillery procurement and development programs.

6. Technological Innovations: Continuous advancements in propulsion, guidance, and fire control systems are expanding the capabilities of 155mm artillery shells, making them more efficient and cost-effective.

7. Industrial and Manufacturing Capabilities: Leading defense contractors and state-owned enterprises are ramping up production to meet the rising global demand for artillery ammunition, particularly in response to high-consumption conflicts like the Russia-Ukraine war.

Regional Trends in 155mm Artillery Shell Market

The demand for 155mm artillery shells varies across different regions, driven by security threats, military strategies, and defense budgets.

1. North America: The United States is the largest market for 155mm artillery shells, with ongoing programs focused on enhancing range and precision. The U.S. Army's Extended Range Cannon Artillery (ERCA) and the adoption of smart munitions are key trends in the region. Canada also maintains a strong artillery capability within NATO frameworks.

2. Europe: European countries, particularly NATO members, are investing in modern artillery systems due to security concerns over Russia. Countries like Germany, France, and the United Kingdom are expanding their artillery capabilities, with increased collaboration on joint projects such as the European PESCO initiative for artillery modernization.

3. Asia-Pacific: The region is witnessing a surge in demand for 155mm artillery shells due to rising tensions in the South China Sea, the Taiwan Strait, and border conflicts between India and China. Countries like India, South Korea, and Japan are procuring and developing advanced artillery systems to bolster their defense capabilities.

4. Middle East & Africa: Persistent regional conflicts have driven strong demand for artillery systems in the Middle East. Nations such as Saudi Arabia, the UAE, and Israel continue to acquire and develop modern 155mm munitions. Africa's market is growing slowly, with some nations investing in artillery for counter-insurgency operations.

5. Latin America: While not a major market, some countries like Brazil and Argentina are modernizing their artillery capabilities, primarily for border security and peacekeeping missions.

Key 155mm Artillery Shell Programs

Here are 5 key 155mm artillery shell programs:

The Dusseldorf-based technology company Rheinmetall has secured a framework contract with the Bundeswehr for the supply of 155mm artillery ammunition, with a total potential value of up to €8.5 billion. The agreement was finalized on June 20, 2024, in Koblenz, where Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), and Rheinmetall representatives signed the contract at the agency's headquarters. This agreement marks a significant expansion of an existing framework contract. Its primary objective is to replenish the Bundeswehr's ammunition reserves and those of its allies while also supporting Ukraine's defense efforts. Deliveries are set to commence at the beginning of 2025, with the Federal Republic of Germany serving as the primary purchaser. A portion of the supplies will be allocated to Ukraine, and the Netherlands, Estonia, and Denmark are also contributing to the order. To facilitate the operational capacity of Rheinmetall's new factory in UnterluB, Lower Saxony, an initial call-off from the contract has been placed. This order, valued at approximately €880 million, includes various versions of 155mm artillery shells. Deliveries for this batch are also scheduled to begin in 2025, with additional order expansions anticipated in the coming years.

NATO has signed a €1.1 billion ($1.2 billion) contract for hundreds of thousands of 155mm artillery rounds, some of which will be delivered to Ukraine in response to Kyiv's concerns over ammunition shortages. Ukrainian Defence Minister Rustem Umerov recently highlighted the severity of the issue, referring to the lack of ammunition as "shell hunger," which continues to challenge Ukraine's forces nearly two years after Russia's full-scale invasion. The NATO Support and Procurement Agency (NSPA) negotiated the agreement on behalf of multiple member states, who will either supply the shells to Ukraine or use them to replenish their own depleted stockpiles. A NATO official identified Belgium, Lithuania, and Spain as the participating buyers, who joined forces to secure lower prices through bulk purchasing. The deal is expected to produce approximately 220,000 artillery rounds, with initial deliveries anticipated by the end of 2025, according to the official speaking to Reuter The ammunition will be manufactured by French defense company Nexter and Germany's Junghans, an industry source confirmed. Since launching its initiative to address military stock shortages last July, NATO has secured contracts worth around $10 billion (€9.19 billion), covering artillery and tank munitions as well as Patriot air defense missiles, according to NATO Secretary-General Jens Stoltenberg.