Explosives and Propellants Market
Visiongain has published an independent study entitled Explosives and Propellants Market Report 2025-2035. This independent study estimates the global explosives and propellants market at US$41,072.6 million in 2025 and predicts a CAGR of 5.5% across the forecast ten-year period.
Impact of US Trade Tariffs
The introduction of U.S. tariffs on critical raw materials and intermediates, such as ammonium nitrate, RDX, TNT, and nitrocellulose, is expected to markedly alter global trade dynamics in the explosives and propellants industry. These trade measures will likely increase input costs for U.S.-based manufacturers, resulting in tighter profit margins and delays across essential production cycles.
Global supply chains are anticipated to face significant disruption, driving a strategic pivot toward localised sourcing. However, this shift may incur short-term research and development costs and pose risks related to material consistency and quality control. Key end-use industries, particularly defence and mining, are projected to encounter greater cost volatility and reduced capital investment activity in response to pricing uncertainty and operational delays.
Furthermore, major exporting nations, including China, India, Mexico, and Brazil, are expected to experience substantial disturbances in trade flows. At the same time, the U.S. domestic market will likely face heightened cost pressures and the possibility of retaliatory trade actions from key international partners, further complicating the global competitive landscape.
Rising Global Defence Investments Catalysing Growth in the Explosives and Propellants Sector
A sustained surge in global defence spending is reshaping the strategic landscape of the explosives and propellants industry. This upswing is driven by shifting warfare doctrines, increased geopolitical tensions, and a renewed focus on supply chain resilience for critical defence components. In 2024, worldwide military expenditure reached a record-breaking $2.46 trillion, underscoring a global pivot toward arsenal modernisation and enhanced autonomy in munitions production, particularly in advanced energetic materials, propellants, and delivery systems.
The United States continues to lead global defence funding, proposing a fiscal year 2025 budget of $849.8 billion. Within this, a historic $30 billion has been allocated for munitions procurement aimed at replenishing stockpiles depleted by prolonged engagements in Ukraine and the Indo-Pacific. Notably, funding is being channelled into next-generation capabilities such as long-range fires, hypersonic systems, and advanced propulsion—all heavily reliant on high-performance explosives and customised propellant technologies. A key development reinforcing this trend is Lockheed Martin’s $4.94 billion contract awarded in April 2024 to supply Precision Strike Missiles (PrSM) to the U.S. Army, further amplifying demand for thermally stable and composition-specific energetic materials.
How will this Report Benefit you?
Visiongain’s 373-page report provides 137 tables and 204 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analysis of the explosives and propellants market, along with detailed segment analysis of the market. Our new study will help you evaluate the overall global and regional market for explosives and propellants. Get financial analysis of the overall market and different segments, including applications, type, propellant applications, gun propellant, rocket propellant types, explosive types, and capture a higher market share. We believe there are strong opportunities in this fast-growing explosives and propellants market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise productivity.
What are the Current Market Drivers?
Technologies and Defence Strategies Fueling Demand for Advanced Explosives and Propellants
In response to growing geopolitical instability and an urgent need for supply chain autonomy, several nations are reconfiguring their defence industrial strategies, setting the stage for heightened demand in the explosives and propellants sector. In April 2025, the United Kingdom unveiled a significant initiative to scale domestic weapons manufacturing, emphasising the production of critical energetic materials such as RDX-based explosives and propellants for 155mm NATO-standard artillery shells. As reported by The Guardian, BAE Systems has been appointed to lead this national effort, which includes establishing new manufacturing facilities to ensure production continuity during high-conflict scenarios. The move signals a strategic shift from reliance on allied imports, particularly from the U.S. and France, and reaffirms the UK’s commitment to sovereign defence capability.
This strategic reorientation is occurring in parallel with a broader technological transformation across global defence forces. Militaries are increasingly pivoting from conventional platforms to advanced, precision-guided systems that demand sophisticated energetic solutions. Hypersonic missiles, AI-enabled smart weapons, and next-generation munitions are redefining performance standards for explosives and propellants. These technologies require materials with high energy density, rapid ignition properties, thermal stability, and predictable detonation behaviour across extreme environmental conditions.
Where are the Market Opportunities?
Expanding Industrialisation and Defence Modernisation in Emerging Economies: Accelerating Demand for Energetic Materials
The global explosives and propellants market is witnessing a significant demand surge, driven by rapid economic growth and strategic modernization initiatives in emerging economies—particularly across the Asia-Pacific region. Countries such as India, China, Indonesia, and others are investing heavily in both defence and civil infrastructure, creating a broad-based and sustained demand for high-performance energetic materials. Large-scale infrastructure expansion forms a critical pillar of this growth. Accelerated urbanisation, combined with national investment in megaprojects—including smart cities, high-speed rail corridors, expressway networks, and energy facilities—has amplified the use of explosives in construction, mining, and tunnelling operations. Controlled blasting techniques are essential for executing these complex projects, prompting increased procurement of specialised civil-grade explosives that meet stringent performance and safety standards.
In parallel, rising regional security concerns are compelling governments to strengthen military capabilities through strategic investments in modern warfare systems. India and China have significantly expanded their defence budgets, channelling funds into next-generation missile programs, aerospace advancements, and integrated weapon platforms. These initiatives fuel the need for advanced propellants and explosive compositions capable of supporting high-velocity, thermally stable, and mission-adaptable defence applications.
This dual-channel growth, from both military and civilian sectors, positions emerging markets as critical demand engines within the global energetic materials ecosystem. The requirement for tailored, efficient, and scalable solutions drives innovation and reshaping supply chains, with manufacturers increasingly focusing on regional production hubs and localised sourcing strategies to meet evolving needs. As a result, the Asia-Pacific region and other emerging economies are not only expanding their market footprint. Still, they are also influencing the next phase of technological and industrial evolution in the explosives and propellants sector.
Competitive Landscape
The major players operating in the explosives and propellants market are Explosia a.s., Pakistan Ordnance Factories, Australian Munitions (Thales Australia Limited), Eurenco, General Dynamics Corporation, MAXAM, Rheinmetall AG, Olin Corporation, Forcit Group, Solar Industries India Limited, Yugoimport–SDPR, NITRO-CHEM S.A., Dyno Nobel Limited, Orica Limited, AECI Limited, Hanwha Corporation, and Sasol Limited. These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launches.
Recent Developments
On 9 April 2025, Nitro-Chem S.A., a prominent Polish explosives manufacturer, secured a major international contract valued at $310 million with Paramount Enterprises International, a U.S.-based defence contractor. Under the terms of the agreement, Nitro-Chem will supply 18,000 tons of trinitrotoluene (TNT) over a three-year period from 2027 to 2029.
Notes for Editors
(Including Impact of U.S. Trade Tariffs): Forecasts by Applications (Commercial, Military, Civilian, Safety), by Type (Propellants, Explosives), by Propellant Applications (Gun Propellant, Rocket Propellant), by Gun Propellant (Single Base (Nitrocellulose), Double Base (NC + NG), Triple Base (NC + NG+NQ)), by Rocket Propellant Types (Solid Rocket Propellant Liquid Rocket Propellant), by Explosive Types (High Explosive (RDX, TNT, and HMX), Low Explosives, Other Explosives (DNAN and NTE)) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.
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About Visiongain
Visiongain is a leading media company in Europe. Headquartered in London, UK, Visiongain specialises in producing a wide range of business-to-business reports covering key industries such as automotive, aviation, chemicals, cybersecurity, defence, energy, food & beverage, materials, packaging, pharmaceuticals, and utilities. Over the past 25 years, Visiongain has established itself as a trusted resource for business professionals seeking independent, high-quality, original insights to support their decision-making.
