Market Trends of Middle-East And Africa Helicopters Industry
Military Segment to Exhibit the Highest Growth Rate During the Forecast Period
The rising demand for military rotorcraft can be attributed to escalating military conflicts, terrorist activities, border disputes, and territorial violations. Moreover, the armed forces of various countries in the region are adopting advanced technologies for their helicopters to gain a strategic edge over their adversaries. Additionally, the demand for this segment is expected to increase due to rising military expenditure and various military modernization efforts by the countries in the Middle East and Africa.
For instance, in 2022, the region’s military expenditure reached USD 223 billion. With this huge defense spending, various countries in the region are procuring and indigenously developing new military helicopters to counter various threats and bolster their defense capabilities. In June 2023, Turkish Aerospace Industries unveiled its new T925 ATAK-II heavy multi-role helicopter. The T925 will include a maximum take-off weight of around 11,000 kg and accommodation for three crew and 20 passengers. This helicopter was developed to enhance the Turkish army's transport capabilities.
Similarly, in March 2023, NH Industries delivered the first two NH90 naval variant helicopters to the Qatar Emiri Air Force to carry out maritime missions. The contract between NH Industries and Qatar includes the delivery of 16 NH90 TTHs for land operations and 12 NH90 NFHs for naval missions. With the deliveries continuing at a rate of just over one helicopter every two months, before the end of November 2022, four helicopters had been delivered and were fully operational in Qatar.
Apart from the procurement of military helicopters, various countries in the region are procuring military training helicopters to train the air military personnel to counter evolving future threats. For instance, in November 2023, the Royal Jordanian Air Force received the first five Bell 505 military training helicopters. The factors above and the instances are propelling the growth of the military helicopter market in the region.
Saudi Arabia is Expected to Show Significant Growth During the Forecast Period
The Saudi Arabian helicopter market is projected to show significant growth during the forecast period. The demand for helicopters in Saudi Arabia is driven by several factors, such as the country's strategic location, economic development, security challenges, and regional conflicts. Saudi Arabia is investing heavily in tourism development under its Saudi Vision 2030 plan, which aims to reduce the dependency on oil trade for economic growth.
The commercial helicopter segment is mainly driven by oil and gas, tourism, and general aviation. The oil and gas segment is the largest and most important segment, as Saudi Arabia is the world's largest exporter of crude oil and natural gas liquids. Helicopters are essential for transporting personnel and equipment to offshore platforms, rigs, and pipelines. They also provide emergency response and maintenance services. So various helicopter services companies are expanding their fleet of helicopters to cater to the market demand. For instance, in March 2023, Leonardo announced that THC decided to further expand the presence of their AW139 fleet in Saudi Arabia for SAR, EMS and corporate transport by adding six helicopters plus 20 options within the next 18 months.
Furthermore, the military aviation industry in Saudi Arabia is currently undergoing several transformations and advancements. As part of the Saudi Vision 2030 initiative, numerous original equipment manufacturers (OEMs) formed partnerships and are working on developing commercial and military helicopters domestically. For instance, in June 2023, Scopa Industries and Airbus signed an agreement to co-produce more than 100 helicopters in the kingdom with an investment of USD 6.6 billion over 20 years. Such developments are expected to drive the demand for helicopters in the country during the forecast period.
