Market Trends of Middle-East And Africa Aircraft Engine Industry
Military Aviation Segment to Exhibit the Highest Growth Rate During the Forecast Period
The rise of terrorism and political instability in the region is driving investment in the development and acquisition of fighter aircraft. Additionally, the demand for this segment is driven by the acquisition of various military aircraft in the region annually. For instance, in July 2023, Israel approved the purchase of Lockheed Martin’s F-35 stealth fighter jets worth USD 3 billion. The additional 25 aircraft to be delivered by Lockheed Martin is expected to bring the number of F-35s in Israel's air force to 75 aircraft. Turkey is also making significant advancements in the development of fighter aircraft engines. In January 2020, Turkey announced the maiden flight of its TF-X National Combat Aircraft (MMU) using a domestic engine by 2029. The engine will complete the testing by 2026. On this note, in June 2022, the Turkish government officially released a request for proposal for the local development of a turbofan engine to power the TF-X aircraft.
Besides, international collaboration for developing military-grade engine components is also on the rise. For instance, in July 2022, SAMI Composites LLC, signed an agreement with Lockheed Martin, to develop a Composites Manufacturing Center of Excellence in Riyadh. The new composites manufacturing center is expected to help Saudi Arabia build its aerospace manufacturing capabilities to produce cutting-edge solutions in the future. Overall, the aforementioned factors and instances are propelling the growth of military aircraft engine development and procurement in the region.
United Arab Emirates to Exhibit the Highest Growth Rate During the Forecast Period
The United Arab Emirates is emerging as a major player in commercial, general, and military aviation sectors in the region. The country is becoming a major tourist and business hub which is leading to the growth in air passenger traffic. To cater to the rising demand, national airlines such as Emirates, Air Arabia, etc. are procuring new aircraft and upgrading the existing fleet. In November 2023, Emirates awarded a contract to Boeing for 55 additional B777-9s and 35 of its B777-8s, bringing the airline’s total orders for the B777X widebody jets to 205 units. The airline is also updating its order of Boeing B787 Dreamliners from 30 to 35, comprised of 15 B787-10s and 20 B787-8s.
Similarly, the demand for helicopters is also witnessing a surge across the country. In November 2023, UAE announced that it plans to domestically develop VRT light helicopters. The country plans to develop the VRT500 and VRT300 co-axial light helicopters through the country’s Strategic Development Fund (SDF). Additionally, in March 2023, Leonardo was awarded a contract at Heli-Expo 2023 by Abu Dhabi Aviation (ADA) to deliver six AW139 intermediate twin-engine helicopters. The aircraft are expected to be delivered in 2024-2026 for offshore transport missions. Thus, increasing aircraft deliveries will create demand for new engine which will drive the market growth in coming years.
