Vyansa Intelligence announced on March 29 that the Europe 155mm artillery shells market is projected to grow at a compound annual growth rate of about 8.39% from 2026 to 2032, reaching an estimated value of USD 870 million by the end of the period. The research attributes this expansion to increased defense budgets, stockpile replenishment efforts, and ongoing geopolitical tensions across European countries.
The report highlights that Germany holds approximately a thirty percent share of the regional market, driven by its robust defense manufacturing sector and procurement programs. The growing demand for artillery shells is largely due to active conflict situations and contingency planning among military forces in Europe. This has led governments to invest in both immediate operational supplies and long-term reserves for their armed forces.
Manufacturers such as Rheinmetall, Nexter (KNDS), Thales, BAE Systems, Elbit Systems, and General Dynamics Ordnance & Tactical Systems are ramping up production capacity in response to rising demand. In one notable development during early 2025, Rheinmetall AG began expanding its ammunition production facility under the “Plant Lower Saxony” initiative with an investment of around €500 million. According to Vyansa Intelligence’s full report available online, this expansion aims to address supply limitations but may not immediately balance demand as shortages are expected during the initial ramp-up phase.
The study also notes a structural challenge facing conventional artillery shells: a gradual shift toward precision-guided munitions that offer higher accuracy but come at greater cost. Despite these trends, high-explosive (HE/HE-FRAG) shells remain dominant with about sixty-five percent market share due to their versatility in combat operations. Unguided shells account for nearly eighty percent of usage because they are more cost-effective for large-scale deployment compared with precision-guided alternatives.
Several national markets within Europe show strong growth trajectories as well. For example, Finland’s segment is forecasted to increase from USD fifteen million in 2025 to fifty-five million by 2032; Spain’s from fifty-five million in 2025 up to eighty million; Poland’s from eighty million up to one hundred twenty million; Baltic States’ segment doubling from twenty million up to forty million; while Germany’s portion grows from USD one hundred forty-five million in 2025 up to two hundred ten million by the end of the period.
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The continued focus on strengthening Europe’s defense capabilities through long-term contracts and expanded manufacturing points toward sustained growth within this sector over coming years.
