Despite European budget cuts, the ending of the Afghan war, and the advent of sequestration in the US that led to a drop in armored vehicle demand, US-based market research firm, MarketsandMarkets, released a report that tells of an expected boost in the procurement of armored vehicles in the next 10 years.
According to the report based on a projected compound annual growth rate of 4.93 percent, the global armored vehicles market is expected to reach $28.62 billion by 2019; primarily in the Middle East, North Africa and Asia.
Saudi Arabia, Israel and UAE in particular are expected to spend extensively on armored vehicle procurement, with UAE providing expansion into new markets like Yemen, Somalia and Libya.
Military analyst, Matthew Hedges, from the Institute for Near East and Gulf Military Analysis said that, “The armored vehicle market in the Middle East and North Africa [MENA] region is a very dynamic arena as interstate conflict, insurgency and the evolution of techniques, tactics and procedures are creating an unstable environment for the militaries to operate in.”
He added that, “a lot of vehicles recently procured in the region have been gifted; there is an increasing demand to secure the borders of the states in the MENA region as there is a dire threat to the regional economies through a combined lack of security.”
Online defense site Defence IQ, which is based in the Middle East, also reported that countries within the region are continuing to acquire new fleets and modernize their armored vehicles.
For more details, read DefenseNews.com’s article by clicking here.