By FrostSullivan on Wednesday, June 26th, 2013
Middle East Military Unmanned Aerial Vehicles Market Grows Significantly
Growing demand supported by strong intent and investment capability is expanding the marketplace for military unmanned aerial vehicles (UAVs) within the Middle East. The region is already considered a lucrative marketplace for defence. UAV development efforts by some Middle East nations coupled with imports from the U.S. will strongly bolster market expansion.
Currently, the U.S. and Israel are the highest UAV exporters globally. Israel’s loss of military ties with Arab nations owing to historic conflicts signifies that Middle East countries have had no option but you got UAVs from the us. However, other countries are achieving significant success in UAV technology and should soon be ready to export to the center East. Regional interest and expertise within the domain is rising fast besides.
A key market driver is the concern of spreading regional unrest. UAVs can offer smaller states the way to expand their strength beyond traditional capabilities. The shortage of UAV capability within the larger Middle East states significantly influences regional power dynamics. As an instance, the Hezbollah movement recently acknowledged its use of UAVs against Israel. Gulf Arab states are alarmed on the civil war in Syria and need with the intention that popular uprisings in North Africa don’t spread to the Gulf. Also they are concerned with Iran’s nuclear program. For this reason, every large country within the region understands the necessity to acquire UAVs.
“Among the wealthy and politically stable Gulf nations, UAE is more focussed on boosting its UAV capability,” noted Frost & Sullivan Aerospace & Defence Senior Analyst Mahendran Arjunraja. “UAVs displayed on the country’s International Defence Exhibition (IDEX) also managed to generate loads of interest from Saudi Arabia and Oman. Nonetheless, efforts at indigenous capability will take a little time to materialise and until then, Middle East nations should depend upon foreign equipment.”
Since traditional defence partners, the united kingdom and France, have limited UAV capability, Middle East countries are seeking for other partners. Turkey, with strong cultural ties to the center East, has made significant developments in unmanned capability. It’s highly likely that Middle East countries will import loads of UAVs from Turkey when the Turkish Aerospace Industries (TAI) ANKA UAV is able for export. Interestingly, Pakistan-made UAVs have also managed to generate interest within the Middle East.
With domestic defence budgets coming stressed, American UAV suppliers are keen for export opportunities. However, the existing Missile Technology Control Regime (MTCR) guidelines act as a disadvantage. The first focus of MTCR is to manage the spread of cruise missiles and ballistic missiles and UAVs are included in MTCR since they are often used to deliver weapons.
“The U.S. seems to know the strategic implications of not catering to the center East and should be considering options to circumvent MTCR or amend existing norms that allows you to tap the center East market,” observed Arjunraja. “One option to bypass the MTCR is by providing UAV ‘services’ rather than selling the equipment. When UAV capability is rented, the ownership of the equipment still lies with the supplier country. The hot sale of intelligence, surveillance, and reconnaissance (ISR)-only UAVs (General Atomics’s Predator drones) to UAE shows that the U.S is willing to chill restrictions to seize market opportunities.”
“A large numbers people UAV companies also are forging ties with local partners,” added Arjunraja. “Forging ties with international companies while encouraging domestic development through offsets and technology transfers offers Middle East countries a shorter path to success.”
Going forward, competition is determined to extend within the Middle East UAV market as more countries join the fray. Domestic competition could be an element to take care of eventually, as production capabilities in the Middle East increase and manufacturers gain confidence of their platforms and the facility to draw international customers.
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