Market Trends of middle-east and africa military aviation Industry
Major military powers in the region have surged their defense expenditure
- Defense expenditures in the Middle Eastern region were around USD 184 billion in 2022, a decline of over 3.2% compared to 2021. In contrast, it was around USD 39.4 billion in Africa in 2022, with a decline of over 5% from 2021. Countries such as Saudi Arabia, Egypt, Qatar, United Arab Emirates, and Algeria were the major countries in the region with a high defense expenditure during 2017-22. They have active procurement programs for multi-role and utility aircraft in fixed-wing segments.
- Sub-Saharan Africa鈥檚 combined military expenditure stood at USD 20.3 billion in 2022, down by 7.3% compared to 2021 and 18% compared to 2013. Nigeria and South Africa, the sub-regions two largest spenders, led the decline in military spending in 2022. In 2022, Israel鈥檚 military spending fell for the first time since 2009. Its total of USD 23.4 billion was 4.2% lower than in 2021.
- The year-on-year (Y-o-Y) growth in Saudi Arabia's military spending was 16% in 2022 compared to 2021, the first Y-o-Y increase since 2018. Saudi Arabia's military expenditure was estimated at USD 75.0 billion last year. The reduction coincided with accusations that Saudi Arabia had started to remove its military personnel from Yemen. However, the Saudi government denied the allegations and insisted that the personnel were just being redeployed. Since 2015, Saudi Arabia has been leading a coalition in a military campaign against the war-torn nation of Yemen, and the fighting continued into 2022. Saudi Arabia had the second-largest military budget in the world, at 7.4% of GDP, after Ukraine in 2022.
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Fleet replacement programs for older aircraft are projected to be the main driver for Middle Eastern military aviation
- As of 2022, the Middle East & Africa had an active fleet of 9,460 aircraft. The total active aircraft fleet increased by 1% in the region compared to 2017. South Africa, Algeria, the United Arab Emirates, Saudi Arabia, Turkey, Egypt, and Qatar accounted for 58% of the total active fleet in the region.
- In the Middle East, defense spending in 2022 totaled USD 157 billion, an increase of 8.6% from 2020 and 5.6% from 2012, respectively. While North Africa accounted for 49%, Sub-Saharan Africa accounted for 51% of the total spending.
- Countries such as Saudi Arabia, Qatar, and the United Arab Emirates are expanding their aircraft fleet size to fulfill the demands of modern warfare. They may continue to produce and acquire next-generation aircraft during the forecast period. The regional armed forces are also enhancing the capabilities of helicopters with cutting-edge technology to obtain military superiority over the external threat.
- Africa鈥檚 active fleet size decreased by 1% in 2022 compared to 2017. South Africa, Algeria, and Egypt accounted for 45% of the total fleet in Africa. The fleet may increase in the coming years as major countries like Algeria and Egypt plan to procure around 100 aircraft.
- The Middle East & Africa鈥檚 active fleet increased by 8% compared to 2017. Saudi Arabia, the United Arab Emirates, Qatar, and Turkey accounted for 59% of the total fleet in the Middle East. During the forecast period, the active aircraft fleet may increase in the region as countries like the United Arab Emirates, Qatar, and Turkey plan to procure around 400 aircraft.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increased inflation has adversely impacted the growth of the region
