Market Trends of Middle East and Africa Ammunition Industry
This section covers the major market trends shaping the MEA Ammunition Market according to our research experts:
Military Segment Registered the Highest Market Share
The military segment is anticipated to dominate the market during the forecast period due to the increased procurement of ammunition by the armed forces to subdue the threats arising due to terrorism, territorial conflicts, and geopolitical tensions. The countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking, generating demand for ammunition. For instance,
In January 2022, South Korea inked a deal with the United Arab Emirates to export midrange surface-to-air missiles, marking the Asian country's largest-ever arms export deal in history. On January 16, 2022, the contract for the Cheongung II KM-SAM weapons (valued at about USD 3.5 billion) was signed.
In November 2021, AED 143.98 million (USD 39.20 million) contract was signed with Pakistan's Global Industrial and Defence Solutions (GIDS) for the supply of various ammunition. The increase in defense expenditure and procurement in the military ammunition segment is expected to drive the market in the coming years.
Saudi Arabia is Expected to Generate the Highest Demand for Ammunition During the Forecast Period
Saudi Arabia possesses local ammunition manufacturing capabilities, bolstered by ammunition manufacturers like Saudi Arabian Military Industries (SAMI). The demand for ammunition from Saudi Arabia is expected to increase because of its active intervention in the ongoing military conflicts in Syria and Yemen. The country is investing heavily in the defense sector. In August 2022, The US State Department announced that it had approved the potential sale of arms to two of its key Middle East partners in separate deals with a total value of more than USD 5 billion. Under the terms of the first agreement, Saudi Arabia would purchase USD 3.05 billion worth of Patriot missiles. The United Arab Emirates would buy USD 2.25 billion worth of Terminal High Altitude Area Defense (THAAD) system missiles. Saudi Arabia signed a pact to purchase arms worth USD 350 billion from the United States by 2027. The intended purchase includes tanks, combat ships, missile defense systems, radar and communication systems, and cybersecurity technology. This factor generated a parallel demand for respective compatible ammunition, and it is expected to drive the market during the forecast period.
