Middle East & Africa Defense Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 1.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East & Africa Defense Market Analysis
The Middle-East and African defense market is anticipated to register a CAGR of over 1% during the forecast period.
The decline in revenues of the governments, due to the COVID-19 outbreak, caused a budget deficit, which impacted the defense spending of the countries in the Middle-East. However, countries, like the United Arab Emirates, Qatar, and Morocco, among others, are investing in the modernization of their military capabilities.
The procurement plans of countries to purchase vehicles, weapons, and related armaments to modernize their aging equipment in the region are expected to act as major drivers for the market during the forecast period. These procurements are fueled by geopolitical and military conflicts in the region.
Owing to the crisis and low budgets of governments in the Middle-East and Africa regions, countries, like Saudi Arabia, the United Arab Emirates, South Africa, and Morocco, among others, are taking initiatives to support the local manufactures. Companies, like Saudi Arabian Military Industries (SAMI) and Denel SOC, are working in collaboration with international military OEMs to enhance their technology and manufacturing capabilities to further expand their presence in the domestic and international markets.
Middle East & Africa Defense Market Trends
This section covers the major market trends shaping the MEA Defense Market according to our research experts:
The Vehicles Segment to Experience the Highest Growth During the Forecast Period
The vehicles segment of the market is expected to register the highest CAGR during the forecast period. This growth is mainly expected to be due to the current plans of the countries in Middle-East and Africa to modernize their armed forces and upgrade their air, land, and sea capabilities. For instance, in July 2022, The Armed Forces of the Kingdom of Morocco have received the VL MICA anti-aircraft system and several Sherpa armoured vehicles from France. The system consists of a command centre, a radar and three to six vertical launchers mounted on trucks, and requires a logistical support vehicle. The system is capable to operate in all weather conditions and, according and can be equipped with both a heat-seeking head and an active radar head.
Countries, like the United Arab Emirates, Qatar, Turkey, and Saudi Arabia, are currently majorly focusing on developing their military capabilities. Saudi Arabia ranked as the sixth-largest defense spender in the world in 2021, behind the United States, China, India, Russia, and the United Kingdom. In February 2021, the governor of GAMI announced that the Saudi Arabia Government (SAG) is looking forward to investing USD 20 billion in its military industry for the next decade. Out of the investment, half of this amount shall be dedicated to the general defense industry, and the rest half to be invested in research and development (R&D). Furthermore, the country plans to increase its military R&D spending from 0.2% to approx. Around 4% of its armament's expenditure by late 2030. Such developments by countries in the region are anticipated to drive the growth of the market during the forecast period.
Saudi Arabia Currently Holds the Highest Market Share
Saudi Arabia is among the top five largest military spenders and the largest spender in the Middle-East and Africa region, with USD 55.6 billion spending in 2021. The country decreased its spending by approximately ~17% in comparison to 2020. With the largest military budget, the country emerged as the largest importer of arms majorly from the United States, followed by the United Kingdom and France. The country is getting into partnerships and collaborations in order to significantly reduce the defense import of the country. In 2021, Saudi Arabia's General Authority for Military Industries (GAMI) and the UAE Tawazun Economic Council signed a memorandum of understanding (MoU) during the International Defense Exhibition and Conference (IDEX 2021). The MoU aims to build strategic relations of cooperation, partnership, and integration between the two sides to enhance the capabilities of the defense industries sector, explore potentials for joint projects, and identify areas of cooperation in defense R&D. The MoU complements the ongoing cooperation between Saudi Arabia and the United Arab Emirates in military and defense fields. This comes on the heels of similar agreements and MoUs signed between the two countries to deepen cooperation in the military and defense industries. In March 2022, the Saudi MoD announced five deals with the Saudi Arabian Military Industries (SAMI) on the final day of the inaugural World Defense Show (WDS) 2022 in Riyadh. Two of them were closed with the Royal Saudi Land Forces (RSLF) and three with the Royal Saudi Naval Forces (RSNF). The deals include one SAR 6 billion (USD 1.6 billion) deal with SAMI for providing advanced communication and maritime systems, among others., a SAR1 billion (USD 270 million) contract with Military Industries Corporation to acquire defense systems, technical and logistic support, and training for the Royal Saudi Air Forces (RSAF), and four contracts worth SAR 100 million (USD 27 million) with the National Company for Mechanical Systems (NCMS) to provide EO systems for the RSLF, among others. Saudi Arabia leaned to develop and manufacture more weapons and military systems domestically, aiming to spend 50% of the military budget locally by 2030. It plans to invest more than USD 20 billion in its domestic military industry over the next decade as part of aggressive plans to boost local military spending. The country also plans to increase its military R&D spending from 0.2% to around 4% of its expenditure by 2030.
Middle East & Africa Defense Industry Overview
The prominent players in the Middle-East and African defense market are The Boeing Company, Lockheed Martin Corporation, Saudi Arabian Military Industries, Israel Aerospace Industries, and BAE Systems PLC. There are many local players in the market and most of these state companies in the region provide their products and solutions to their respective domestic armed and security forces. Elbit Systems Ltd, Aselsan AS, Israel Aerospace Industries, and Denel SOC are some of the domestic players that have an international presence for providing a wide range of military products, from portable military equipment for land forces to radars and other equipment onboard aircraft. With innovation and expansion as major strategies, the companies are currently concentrating on product innovation to capture the market presence in emerging countries. Also, countries are concentrating on developing their local manufacturing facilities. For instance, currently, only 2% of total Saudi Arabia's military spending is provided to local defense companies. To strengthen its local manufacturing, under Vision 2030, the government plans to increase the local military equipment spending to 50% by 2030. With such initiatives, the governments are making significant investments in manufacturers, and the local manufacturers are also collaborating with foreign players for technology exchange and integration of advanced manufacturing technologies. With the growth of collaborations and in-house capabilities of the local companies, domestic manufacturers are anticipated to increase their domination over international players during the forecast period.
Middle East & Africa Defense Market Leaders
The Boeing Company
Lockheed Martin Corporation
Saudi Arabian Military Industries
Israel Aerospace Industries
BAE Systems PLC
*Disclaimer: Major Players sorted in no particular order
Middle East & Africa Defense Market News
- In April 2022, Israel announced that it has successfully tested a new naval air defense system, intercepting a series of threats in what officials called a key layer of protection against Iran and its proxies in the region. The 'C-Dome' system, a naval version of the Iron Dome, is being installed on Israel's latest-generation corvette warships.
- In February 2022, Leonardo was selected and awarded the contract for the combat system integration and main components delivery for the Falaj 3 OPV shipbuilding program. Earlier, in May 2021 Abu Dhabi Ship Building (ADSB), as part of the platform and systems cluster of the EDGE group, announced received an AED 3.5 billion contract for the shipbuilding, fitting out, and delivery of four Falaj-3 class Offshore Patrol Vessels (OPVs).
- In January 2022, the UAE and South Korea inked a preliminary agreement for the acquisition of the latter's Cheongung II surface-to-air missile systems. The estimated value of the deal is USD 3.5 Billion and is fulfilled by the Korean companies Hanhwa Defense and Hanhwa Systems along with LIG Nex1.
Middle East & Africa Defense Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 PESTLE Analysis
5. DEFENSE SPENDING ANALYSIS OF MIDDLE-EAST AND AFRICAN COUNTRIES
6. MARKET SEGMENTATION (Market Size by Value - USD billion)
6.1 Procurement
6.1.1 Personnel Training and Protection
6.1.2 Communication Systems
6.1.3 Weapons and Ammunition
6.1.4 Vehicles
6.1.4.1 Land-based Vehicles
6.1.4.2 Sea-based Vehicles
6.1.4.3 Air-based Vehicles
6.2 MRO
6.2.1 Communication Systems
6.2.2 Weapons and Ammunition
6.2.3 Vehicles
6.3 Geography
6.3.1 Saudi Arabia
6.3.2 Turkey
6.3.3 Israel
6.3.4 Egypt
6.3.5 Algeria
6.3.6 South Africa
6.3.7 Morocco
6.3.8 Rest of Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 SAMI
7.2.2 Emirates Defence Industries Company
7.2.3 Advanced Electronics Company
7.2.4 Military Industries Corporation
7.2.5 Dahra Engineering & Security Services LLC
7.2.6 Lockheed Martin Corporation
7.2.7 The Boeing Company
7.2.8 Elbit Systems Ltd
7.2.9 Israel Aerospace Industries
7.2.10 Raytheon Company
7.2.11 Rheinmetall AG
7.2.12 Aselsan AS
7.2.13 Denel SOC
7.2.14 Northrop Grumman Corporation
7.2.15 BAE Systems PLC
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle East & Africa Defense Industry Segmentation
The study covers all aspects and provides insights into the budget allocation and spending in the Middle-East and African defense market in the past and the present, along with the forecast for the future. The Middle East and Africa Defense market is segmented into procurement, MRO, and geography. By Procurement, the market is segmented into Personnel Training and Protection, Communication Systems, Weapons and Ammunition, and Vehicles. By MRO, the market is segmented into Communication Systems, Weapons and Ammunition, and Vehicles. The report also covers the market sizes and forecasts for the major countries in the region. The market sizing and forecasts have been provided in value (USD billion).
| Procurement | |||||
| Personnel Training and Protection | |||||
| Communication Systems | |||||
| Weapons and Ammunition | |||||
|
| MRO | |
| Communication Systems | |
| Weapons and Ammunition | |
| Vehicles |
| Geography | |
| Saudi Arabia | |
| Turkey | |
| Israel | |
| Egypt | |
| Algeria | |
| South Africa | |
| Morocco | |
| Rest of Middle-East and Africa |
Middle East & Africa Defense Market Research FAQs
What is the current Middle East and Africa Defense Market size?
The Middle East and Africa Defense Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Defense Market?
The Boeing Company, Lockheed Martin Corporation, Saudi Arabian Military Industries, Israel Aerospace Industries and BAE Systems PLC are the major companies operating in the Middle East and Africa Defense Market.
What years does this Middle East and Africa Defense Market cover?
The report covers the Middle East and Africa Defense Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East and Africa Defense Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East & Africa Defense Industry Report
Statistics for the 2024 Middle East & Africa Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East & Africa Defense analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
