Middle-East and Africa Military Aircraft Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2031)

Middle-East and Africa Military Aircraft Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2031)

The Middle-East and African military aircraft market is expected to grow with a CAGR of over 3% during the forecast period (2022-2031).

The impact of the COVID-19 pandemic on the military aircraft market in the region is low. The defense spending of the region witnessed a decline in 2021. It was majorly due to the decision of the major military powerhouses of the region to cut their military expenditures. However, this is not a direct consequence of the pandemic, as the decisions to reduce the military burdens were taken even before the onset of the pandemic. On the other hand, though procurement slowed down in 2020 as the major aircraft production programs faced challenges due to supply chain disruptions, most of the programs reached their pre-pandemic production levels in 2021.

According to the Stockholm International Peace Research Institute (SIPRI), the Middle East is home to six of the 10 countries with the highest military burden globally. Military expenditure in Africa has also increased consequently in the last three years. This has been driving the growth of new aircraft procurements in the region. While the procurement of new aircraft is progressing at a healthier pace in the Middle East, countries in Africa have been conservative in their procurements due to the comparatively lower budgets.

Key Market TrendsFixed-wing Aircraft Segment Held the Largest Market Share in 2021

The fixed-wing aircraft segment held the largest market share in 2021. The countries in the region are robustly investing in the modernization of their old and aging military fixed-wing aircraft fleet with the addition of newer generation aircraft. For instance, in December 2021, the United Arab Emirates signed an agreement with Dassault Aviation to procure 80 Rafale F4 for the United Arab Emirates Air Force & Air Defence (UAE AF & AD). Similarly, in 2021, Nigeria received its previously ordered fleet of 12 A-29 Super Tucano aircraft four years after the United States agreed to sell the light attack aircraft to the country to fight insurgents. The country is also receiving 24 Leonardo M-346FA light fighter aircraft ordered for the Nigerian Air Force (NAF). The aircraft is intended to replace the older Alpha Jet ground attack aircraft of the NAF.

Likewise, in May 2021, Egypt signed a contract with France to buy 30 Rafale fighter jets in a deal that investigative website Disclose said was worth USD 4.5 billion. Egypt is also procuring new transport aircraft. In January 2022, the United States approved the sale to Egypt of 12 Lockheed Martin C-130J Hercules transport aircraft for USD 2.2 billion. The approval covers the C-130J Hercules, mission equipment, spares, training, and support. Such procurement programs are expected to help the growth of the fixed-wing segment in the region during the forecast period.

Saudi Arabia Held the Largest Market Share in 2021

Although Saudi Arabia has reduced its defense spending and budget allocation since 2015, primarily due to downward pressure from declining energy prices and more focus on the education sector, the country is still among the top defense spending countries globally. According to SIPRI, Saudi Arabia’s spent USD 55.6 billion on its defense in 2021, making it the largest in the region. Saudi Arabia is planning to replace its Tornado aircraft with newer generation fighter jets, and the country has been negotiating with the British government for the Eurofighter Typhoon Aircraft. In addition to the plans to procure fixed-wing aircraft, the country has been investing in the procurement and modernization of its helicopter fleet. In March 2021, Saudi Arabia signed more than USD 150 million contracts with Lockheed Martin Corporation. One of the contracts is a modification for four UH-60M Black Hawk helicopters, which are expected to be delivered in 2022. Another contract was awarded to deliver 25 modified UH-60M helicopters for the Saudi Arabian National Guard (SANG). The contract is scheduled to be delivered through October 2024. With these two orders, the order book for UH-60M helicopters has increased to more than 110. As part of the Saudi Vision 2030, the government encourages local manufacturing through contracts and other support initiatives. Although the country does not have indigenous aircraft development capabilities, it manufactures foreign aircraft under license.

Since 2019, Saudi Arabia has been locally assembling the Hawk jet training aircraft. In total, 22 aircraft were assembled by the country under the Saudi-British Defense Cooperation Program in collaboration with BAE Systems. Such programs aimed at developing the local defense manufacturing industry are expected to accelerate the growth of the military aircraft market in the country during the forecast period.

Competitive Landscape

Some major players in the Middle-East and African military aircraft market are Dassault Aviation, Lockheed Martin Corporation, Turkish Aerospace Industries, The Boeing Company, and Rostec. Although several countries in the region lack the capability to produce military aircraft by themselves, new players have emerged in recent years, with assistance from foreign players in building new aircraft. For instance, Turkey's Turkish Aerospace Industries has developed the T-129 attack helicopter in partnership with Augusta Westland and is now developing TF-X fighter aircraft with BAE Systems as its sub-contractor. On the other hand, Iran is also working on developing its military fighter aircraft. Such developments are expected to enhance the market share of local players in the years to come. While countries in the Middle East are looking to procure more sophisticated aircraft, several countries in Africa are looking for cheaper variants of less sophisticated aircraft due to budget limitations. Hence players can opt for more focused offerings and target the countries with specific product offerings to attract customers in the future.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.