Market Trends of Middle-East and Africa Aircraft Engine Industry
This section covers the major market trends shaping the MEA Aircraft Engine Market according to our research experts:
Military Aviation Segment to Exhibit the Highest Growth Rate During the Forecast Period
Owing to the rise in terrorism, and political instability in the region is propelling the investments in fighter aircraft development and procurement. In December 2019, Israel submitted a request for information (RFI) for the procurement of 50 new F-35 aircraft from Lockheed Martin. Israel is also considering the purchase of new F-15 fighter jets from the United States. Turkey is also making significant advancements in the development of fighter aircraft engines. Turkey is planning the maiden flight for its TF-X National Combat Aircraft (MMU) using a domestic engine by 2029. The engine will complete the testing by 2026. Saudi Arabian Military Industries (SAMI) signed a 30-month contract with Figeac Aero for developing an aircraft component manufacturing facility in Saudi Arabia to boost the production of aerostructures, aircraft engine components, etc. In 2018, Bahrain placed an order for 16 F-16 Block 70 aircraft that are currently in construction at the F-16 production line in Greenville, South Carolina. Similar orders have been placed by Kuwait, Qatar, and Egypt for other fighter aircraft models. 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 in the Middle-East region. The United Arab Emirates 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 2019, Air Arabia placed an order for 120 A320neo aircraft exhibiting a significant expansion of its existing fleet. In 2018, Boeing delivered 8 new aircraft to Etihad and the order includes three 787-9, four 787-10, and one 777-200 freighter aircraft. In November 2019, Emirates chose Rolls Royce Trent XWB engines for its order of 50 Airbus A350 wide-body aircraft. Emirates is also expected to sign a deal for General Electric's GEnx engines for its order of 30 Boeing 787 Dreamliner and 126 777X aircraft it placed in 2017. Demand for helicopters is also witnessing a surge in the United Arab Emirates and in 2019, Abu Dhabi Aviation signed a deal for procurement of 5 helicopters from Leonardo while Twazun Economic Council started negotiations on USD 300 million helicopter deal for Abu Dhabi civil and general aviation. The United Arab Emirates also received the clearance from the United States State Department for procurement of 10 CH-47F Chinook helicopters for USD 830.3 million. Tawazun Economic Council and VR Technologies are planning to open a manufacturing plant for VRT 500 helicopter in the United Arab Emirates and in 2019, the parent manufacturing company of VTR 500, Russian Helicopters chose Pratt And Whitney Canada to supply engines for new single light rotorcraft. The aforementioned developments, factors and deals are propelling the market growth for aircraft engines in the United Arab Emirates.
