Middle East Military Vehicles Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 32.22 Billion |
| Market Size (2029) | USD 43.73 Billion |
| CAGR (2024 - 2029) | 6.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East Military Vehicles Market Analysis
The Middle East Military Vehicles Market size is estimated at USD 32.22 billion in 2024, and is expected to reach USD 43.73 billion by 2029, growing at a CAGR of 6.30% during the forecast period (2024-2029).
While countries like Saudi Arabia, Israel, and the United Arab Emirates operate modern military vehicles, several countries in the region possess Soviet-era vehicles that require modernization. Hence, these countries are investing in the procurement of new military vehicles.
In addition, the aging fleet of military vehicles is also forcing some countries to invest in upgrade programs to improve the efficiency, lethality, and sophistication of the vehicles if they are slated to be effectively functional for some more years.
While the modernization and expansion of the region's vehicle fleets continue at a healthy pace, the region is also becoming increasingly self-sufficient and independent of foreign countries by developing indigenous manufacturing capabilities. Several countries have been developing military vehicles on their own or are partnering with their foreign counterparts and manufacturing vehicles locally with the help of technology transfer agreements.
However, factors like fluctuations in oil prices are affecting the economies of several countries in Middle East, in turn affecting growth in military spending.
Middle East Military Vehicles Market Trends
Armored Vehicles Segment to Witness Highest Growth During the Forecast Period
Over the past few years, the military equipment procurement of the region increased at a rapid pace, due to the conflicts in Yemen, Libya, and Somalia and the Sinai insurgency.
UAE plans to modernize all units of the UAE armed forces with new and advanced military equipment to continue developing capabilities. For instance, in February 2023, Nexter, the leading French land defense company, signed a teaming agreement with International Golden Group, the leading supplier of the UAE Armed forces, to prepare for the modernisation of the UAE Army’s Leclerc main battle tank (MBT).
The UAE also intends to utilize the MRAP vehicles to increase force protection, conduct humanitarian assistance operations, and protect critical infrastructure. In February 2023, the first batch of 400 Rabdan 8x8 infantry fighting vehicles (IFVs) was delivered to the UAE Army and manufacturer Otokar is hopeful that additional orders will be placed in the future.
Iran has a very large fleet of wheeled and sand-blasted armored vehicles that can be equipped to carry out missions such as fire support by making a series of modifications. For example, BTR 50 and 60 series and BMP 1 and 2 personnel carriers are among these armored vehicles. Such robust plans of the government of countries in Middle East to rapidly increase the fleet of armored vehicles are anticipated to propel the growth of the military vehicles market in the coming years.
Turkey to Dominate Market Share During the Forecast Period
Turkey has been significantly investing in its defense industry and expanding production. The recent focus on domestic design and production stems from an increase in potential threats from Russia and various militant groups and from sanctions placed on Turkey's defense industry by its NATO allies. In this context, in May 2023, Turkey’s FNSS Defence Systems was contracted to provide capability enhancement to the Turkish Army’s ACV-15 advanced armored personnel carriers (AAPCs). The agreement was signed to boost the vehicle’s performance and extend its service life for an additional 20 years. According to the company, an undisclosed number of AAPCs will be fitted with modern subsystems to support more missions and help address sophisticated threats on the battlefield.
Turkey’s procurement and defense authorities have launched a program designed to increase the structural life of the country’s existing fleet of F-16 Block 30 jets from 8,000 flight hours to 12,000. The upgrades may cover 1,200 to 1,500 parts per aircraft.
In addition, Turkey has vastly advanced in armored vehicle manufacturing and is acquiring new vehicles to modernize its fleet and with its interest in upgrading its naval fleet to further contribute to the growth of the market. For instance, in April 2023, the Turkish Navy received its largest vessel, the amphibious assault ship TCG Anadolu which is Turkey’s first landing platform dock. The military will deploy heavy helicopters, drones and light-attack aircraft from the vessel.
Middle East Military Vehicles Industry Overview
The Middle East military vehicles market is semi-consolidated and is marked by the presence of several local and international players vying for a larger market share. Some of the prominent players include Rostec, Lockheed Martin Corporation, The Boeing Company, Saudi Arabian Military Industries (SAMI), and Leonardo S.p.A.
The growing focus on indigenous manufacturing of military vehicles is anticipated to increase the market share of local players during the forecast period. Countries like Turkey, Saudi Arabia, and the United Arab Emirates are the frontrunners in indigenous manufacturing. For instance, Saudi Arabia is focused on enhancing its defense weapon and ammunition manufacturing capability to reduce its dependency on the export of military equipment and weapons in line with the Saudi government's Vision 2030. The government plans to increase the local military equipment spending to 50% by 2030. Saudi Arabian Military Industries (SAMI), BMC Otomotiv Sanayi ve Ticaret AŞ, and Denel SOC Ltd are prominent local manufacturers.
Middle East Military Vehicles Market Leaders
Lockheed Martin Corporation
The Boeing Company
Saudi Arabian Military Industries (SAMI)
Leonardo S.p.A.
Rostec
*Disclaimer: Major Players sorted in no particular order
Middle East Military Vehicles Market News
- In October 2023, the Estonian Centre for Defence Investments awarded contracts to Turkish manufacturers Otokar and Nurol Makina to purchase roughly 230 armored vehicles for a total of about USD 211 million.
- In June 2022, Israel awarded a USD 28 million contract to IAI for the purchase of hundreds of combat vehicles for the country’s special forces.
Middle East Military Vehicles Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Military Aircraft
5.1.1 Combat Aircraft
5.1.1.1 Fighter Aircraft
5.1.1.2 Combat Helicopters
5.1.2 Non-combat Aircraft
5.1.2.1 Reconnaissance and Surveillance Aircraft
5.1.2.2 Trainer Aircraft
5.1.2.3 Transport Aircraft
5.1.2.4 Other Non-combat Aircraft
5.2 Naval Vessels
5.2.1 Destroyers
5.2.2 Frigates
5.2.3 Corvettes
5.2.4 Submarines
5.2.5 Other Naval Vessels
5.3 Armored Vehicles
5.3.1 Armored Personnel Carriers
5.3.2 Infantry Fighting Vehicles
5.3.3 Mine-Resistant Ambush Protected
5.3.4 Main Battle Tanks
5.3.5 Other Armored Vehicles
5.4 Geography
5.4.1 Saudi Arabia
5.4.2 United Arab Emirates
5.4.3 Qatar
5.4.4 Turkey
5.4.5 Israel
5.4.6 Rest of the Middle East
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Rostec
6.2.2 Lockheed Martin Corporation
6.2.3 The Boeing Company
6.2.4 Abu Dhabi Ship Building Co.
6.2.5 IAI
6.2.6 BMC Otomotiv Sanayi ve Ticaret A.Ş.
6.2.7 Fincantieri S.p.A.
6.2.8 Saudi Arabian Military Industries (SAMI)
6.2.9 Dassault Aviation SA
6.2.10 Naval Group
6.2.11 Denel SOC Ltd.
6.2.12 BAE Systems plc
6.2.13 Oshkosh Corporation
6.2.14 Airbus SE
6.2.15 Leonardo S.p.A.
6.2.16 Patria Group
6.2.17 FNSS Savunma Sistemleri A.Ş.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle East Military Vehicles Industry Segmentation
The study provides insights into the procurement, indigenous manufacturing, upgrade activities, and development of military vehicles in the Middle Eastern region. Military vehicles include military aircraft, naval vessels, and armored vehicles.
The Middle East military vehicles market is segmented by military aircraft, naval vessels, armored vehicles, and geography. By military aircraft, the market is segmented into combat aircraft and non-combat aircraft. By naval vessels the market is segmented into destroyers, frigates, corvettes, submarines, and other naval vessels. The other naval vessels include patrol boats, support vehicles, etc. By armored vehicles the market is segmented into armored personnel carriers, infantry fighting vehicles, mine-resistant ambush protected, main battle tanks, and other armored vehicles. The report also offers the market size and forecasts for five countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| Military Aircraft | ||||||
| ||||||
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| Naval Vessels | |
| Destroyers | |
| Frigates | |
| Corvettes | |
| Submarines | |
| Other Naval Vessels |
| Armored Vehicles | |
| Armored Personnel Carriers | |
| Infantry Fighting Vehicles | |
| Mine-Resistant Ambush Protected | |
| Main Battle Tanks | |
| Other Armored Vehicles |
| Geography | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Turkey | |
| Israel | |
| Rest of the Middle East |
Middle East Military Vehicles Market Research FAQs
How big is the Middle East Military Vehicles Market?
The Middle East Military Vehicles Market size is expected to reach USD 32.22 billion in 2024 and grow at a CAGR of 6.30% to reach USD 43.73 billion by 2029.
What is the current Middle East Military Vehicles Market size?
In 2024, the Middle East Military Vehicles Market size is expected to reach USD 32.22 billion.
Who are the key players in Middle East Military Vehicles Market?
Lockheed Martin Corporation, The Boeing Company, Saudi Arabian Military Industries (SAMI), Leonardo S.p.A. and Rostec are the major companies operating in the Middle East Military Vehicles Market.
What years does this Middle East Military Vehicles Market cover, and what was the market size in 2023?
In 2023, the Middle East Military Vehicles Market size was estimated at USD 30.19 billion. The report covers the Middle East Military Vehicles Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East Military Vehicles Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East Military Vehicles Industry Report
Statistics for the 2024 Middle East Military Vehicles market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Military Vehicles analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
