Weapon & Ammunition Manufacturing in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Weapon & Ammunition Manufacturing in France industry analysis

French weapon and ammunition manufacturers produce small arms and heavy weapons such as rocket launchers and artillery. Companies also manufacture the corresponding ammunition and explosive devices such as grenades, mines, torpedoes and guided missiles. Due to the dangerous nature of the industry's products, French weapon manufacturers sell primarily to state and foreign state organisations. Russia’s invasion of Ukraine in February 2022 spurred an increase in public spending on defence in all NATO countries. Thus, domestic weapons manufacturers have recorded dynamic sales growth over the past five years. Revenue is expected to climb at a compound annual rate of 4.6% over the five years through 2025 to reach €3.9 billion, including an estimated increase of 1.3% in 2025. Russian exports have significantly declined since 2022, while France's exports have increased, making France the world's second-largest exporter of major arms from 2019 to 2023, according to the Stockholm International Peace Research Institute (SIPRI).

Trends and Insights

• US imports threaten revenue prospects. The US dominates industry imports because of its competitive advantage in weapons manufacturing. The CEOs of Airbus SE and the Sweden-based Saab AB called on European governments to rely less on US weapon imports.
• Geopolitical conflict boosts demand for heavy-arm weapons & ammunition. The ongoing Russia-Ukraine war has increased demand for heavy weapons and ammunition manufacturing. The UK has donated anti-tank missiles, artillery guns and air defence systems to Ukraine since its invasion.
• Manufacturers primarily compete on price and quality. They also compete against each other on product range and compatibility with existing weapon systems. To remain competitive, weapons manufacturers continuously adapt their products to the latest technology and strategic needs.