Middle East and North Africa Drones and UAV Market 2024-2031

Middle East and North Africa Drones and UAV Market 2024-2031

Middle East and North Africa Drones and UAV Market reached US$ 693.3 Million in 2023 and is expected to reach US$ 1195.7 Million by 2031, growing with a CAGR of 7.1% during the forecast period 2024-2031.

The Middle East and North Africa governments have made significant investments in unmanned aerial vehicle (UAV) and drone technology for a range of uses, including agricultural, urban planning, infrastructure monitoring, security and defense. The safeguarding of vital infrastructure, border monitoring and counterterrorism operations are only a few of the specific security issues that the Middle East and North Africa has to deal with. Demand in the defense and security industries has been driven by the growing usage of UAVs and drones for border patrol, information collection, surveillance and reconnaissance.

Growing innovative product launches by the major key players helps to boost the market growth. For instance, on January 24, 2024, Eanan Aviation, a UAE technology start-up launched its planned family of eVTOL aircraft at the Dubai Airshow. The company will unveil a pair of cargo drones called the S-120 and the S-700 and present plans for larger models that could include two-seat air taxis.

Saudi Arabia holds a prominent position in the Middle East and North African drones and UAV market due to the growing product launches by major key players. For instance, on March 11, 2023, Hitech Drone, completed a partnership with Flyability to expand the use of indoor drones in the Kingdom of Saudi Arabia. The Elios 3 indoor drone is securely enclosed in a carbon fiber cage, enabling inspectors to use it in diverse environments, including complete darkness.

Dynamics

Technological advancements in UAVs and Drones

The World Economic Forum (WEF) and the newly founded Fourth Industrial Revolution Centre (4IR) in Riyadh are leading the initiatives to establish Saudi Arabia as a global center for innovative drone technology. Cutting-edge drones are being utilized in Africa to deliver vaccines in the middle of the current epidemic, while U.S. drone producers are increasing their efforts to transfer big cargo up to 500 kg, depending on the technology to remote and unreachable locations.

Enhancing the Kingdom's logistical infrastructure has been pinpointed as a priority within the Vision 2031 strategy, with drones recognized as a significant tool for fortifying current transportation systems. Alsaleh, a major key player in the region has pinpointed 70 prospects for the Kingdom to implement 4IR technology, encompassing artificial intelligence (AI), the Internet of Things (IoT), blockchain, government data systems and ""smart cities like NEOM.

Growing Demand of Drones and UAV in the Oil and Gas Industry

An essential geopolitical position in the world's energy picture is occupied by the Middle East and North Africa, according to information gathered by Springer Nature Company in 2024. Despite comprising just 6% of the global population, this region is home to an important portion of the world's reserves of energy, comprising 59% of global oil reserves and 45% of global gas resources. The Middle East and North Africa have around 41% of the world's natural gas assets and 57% of its assessed oil savings. The area contains the absolute biggest traditional coastal and seaward oil and gas fields on the planet.

In the oil and gas sector, the utilization of robots and automated elevated vehicles (UAVs) for basic office checking and examination is expanding. It provide operators with a cost-effective substitute for conventional inspection techniques, enabling them to evaluate pipelines, refineries and other facilities for any issues, rust or leaks. In the oil and gas industry, UAVs fitted with sophisticated sensors and cameras are utilized for mapping and surveying activities. Large regions, including isolated or difficult terrain, swiftly and precisely surveyed by them, yield high-resolution photos and GIS data that are crucial for development and planning.

Lack of Standardization

Manufacturers, operators and prospective clients might be uncomfortable in the absence of uniform standards regulating UAV and drone activities. Due to the unpredictability, adopting these technologies reluctant because of worries about compliance, security and legality. It is difficult to accomplish interoperability between different UAVs and drones in the absence of common protocols and systems for communication. The prevent these technologies from being widely adopted by limiting their scalability and capacity to be integrated into present systems and infrastructure.

Standardization involves setting safety standards and protocols. Without these in place, there is increased safety concerns among consumers and regulatory bodies, which can slow down market growth as stakeholders prioritize safety and risk mitigation. Data misrepresentation occurs as a result of the lack of standardization of these communication interfaces and protocols.

Drones have been left in a state of limbo for years because there are no standards to direct the industry's rapid expansion. Additionally, people don't want to buy agriculture drones because they lack the skills to use the tools (software programs) that evaluate and improve efficiency, which restricts the market's expansion. Concerns about cyber security is another factor preventing market growth.

Segment Analysis

The Middle East and North Africa Drones and UAV market is segmented based on type, component, end-user and region.

Growing Industrial Applications of Fixed-Wing Drones and UAV

Based on the type, the Middle East and North Africa Drones and UAVs are divided into Fixed-Wing, Rotary Blade and Hybrid. Fixed-wing drones and UAVs work like airplanes using lift and drag to stay aloft. Most fixed-wing drones have only one propellor. So fixed-wing drones have longer battery lives with the potential to stay in the air for 20 minutes or longer. The types of drones produce lift power from their wings instead of propellers. It has greater speed than rotary drones and when combined with longer battery life, it allows fixed-wing drones to cover greater acreage.

On February 23, 2023, At IDEX 2023, EDGE announced 11 New Revolutionary Autonomous and Unmanned Solutions. Recent novel products and systems include a wide range of applications, from advanced combat operations and practical support to strategic intelligence, surveillance and reconnaissance (ISR). The Instrumented Testing Platform, a fixed-wing unmanned aerial vehicle (UAV) designed to accelerate product development and speed up time-to-market, is used to test air-to-surface arms in-house.

Geographical Penetration

Saudi Arabia is a Dominating Country in the Middle East and North Africa Drone and UAV Market

Saudi Arabia’s market is driven by its concern about regional security and the need to improve its military capabilities, Saudi Arabia has been investing significant investments in defense and security infrastructure. The Saudi government has been acquiring advanced UAV systems as a result of the critical role that drones and UAVs play in border security, surveillance and reconnaissance. To strengthen its security measures, Saudi Arabia has formed strategic alliances and joint ventures with foreign defense contractors and UAV manufacturers. The partnerships often involve technology transfer agreements and joint ventures, leading to the localization of UAV production and maintenance facilities in the country.

Collaborations and partnership strategies by the major key players help to boost regional market growth over the forecast period. For instance, on February 12, 2024, Fortem Technologies completed a partnership with INTRA Defense Technologies, a Saudi company leading in the development, design and manufacturing of Autonomous Systems for the offering of Advanced C-UAS Solutions.

Competitive Landscape.

The major global players in the market include Aeromotus, FEDS, Israel Aerospace Industries, Zain Drone, UVL Robotics, Drone Solutions, Artrabia, The Customized Drones, Baykar Tech and EDGE PJSC Group.

COVID-19 Impact Analysis

The manufacture and delivery of drones and UAV components were delayed as a result of the pandemic's disruption of global supply networks. Movement restrictions, border closures and interruptions in industrial centers impacted the availability of critical components, which resulted in manufacturing slowdowns and, sometimes higher prices. The pandemic's effects on the economy resulted in lower government spending on defense and surveillance as well as lower investment in new UAV projects. Budgets set for UAV research and acquisition were hampered when some Middle East and North Africa nations diverted funds to healthcare and pandemic response efforts.

The capability of drone manufacturers and service providers to operate their business was hampered by lockdown procedures and mobility limitations implemented to prevent the virus from spreading. Drone delivery services and aerial surveillance operations were impacted by flight restrictions, especially in urban areas. It impacted the sources of income for businesses in the Middle East and North Africa. The market for military drones has likely remained relatively stable or possibly grown as a result of security concerns throughout the epidemic, whereas the demand for commercial and civilian drones has dropped.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war raises interest in and investment in unmanned aerial vehicle (UAV) technology throughout the Middle East and North Africa. Wars frequently stimulate demand for military and surveillance technologies. In response to security concerns or tensions in the region, countries might attempt to strengthen their defense forces and monitoring networks. In the Middle East and North Africa, the fighting accelerated the advancement and application of UAV technology. Countries expedite their UAV procurement programs or invest in domestic UAV production to enhance their military capabilities or surveillance operations.

The conflict prompted nations in the Middle East and North Africa to reevaluate their defense relationships and suppliers. Expanding UAV technology sources helps nations avoid becoming excessively reliant on certain providers or conflict-affected nations. The leads to the formation of new partnerships or joint ventures for the development and acquisition of unmanned aerial vehicles. Due to security concerns and the growing popularity of UAV technology, governments in the Middle East and North Africa have decided to establish or modify regulations governing the import, export and use of drones. The affects licensing requirements, operating constraints for UAV operators and producers and obstacles to entrance into UAV industry.

By Type
• Fixed-Wing
• Rotary Blade
• Hybrid

By Component
• Cameras
• Sensors
• Battery
• Controller
• Propulsion System
• Others

By End-User
• Military & Defense
• Law Enforcement
• Agriculture
• Construction & Infrastructure
• Energy & Utilities
• Media & Entertainment
• Transportation & Logistics
• Others

By Region
• Middle East and North Africa
Saudi Arabia
UAE
Oman
Bahrain
Qatar
Kuwait
Egypt
Iran
Iraq
Israel
Rest of Middle East and North Africa

Key Developments
• On February 06, 2024, Saudi Arabia SAL company completed a partnership with Space Age for drone-based shipments. According to a post on X, SAL stated that the agreement's objective is to supply the technical solutions and infrastructure required for the localization and transfer of the drone industry.
• On February 09, 2024, Front End Limited Company partnered with The Drone Centre for drone distribution in Saudi Arabia. The strategic partnership, centered on the oil and gas industry, gives Front End exclusive privileges to provide specialized payloads that are not available to resellers in different sectors. The agreement is in line with the strategic goals of Saudi Vision 2031's National Industrial Development and Logistics Program (NIDLP), which aims to enhance the localization of the oil and gas sector.
• On August 07, 2023, Saudi Arabia signed an agreement with Turkish defense firm Baykar Tech to localize the manufacturing of drones in the kingdom. The agreement will bolster SAMI's contribution to bolstering the national defense industry and enhancing local capabilities.

Why Purchase the Report?
• To visualize the Middle East and North Africa Drones and UAV market segmentation based on type, component, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of team collaboration tools market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Middle East and North Africa Drones and UAV market report would provide approximately 46 tables, 41 figures and 153 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies