PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1690846
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1690846
The Middle East Military Vehicles Market size is estimated at USD 34.25 billion in 2025, and is expected to reach USD 46.49 billion by 2030, at a CAGR of 6.3% during the forecast period (2025-2030).
While countries like Saudi Arabia, Israel, and the United Arab Emirates operate modern military vehicles, several countries in the region possess Soviet-era vehicles that require modernization. Hence, these countries are investing in the procurement of new military vehicles.
In addition, the aging fleet of military vehicles is also forcing some countries to invest in upgrade programs to improve the efficiency, lethality, and sophistication of the vehicles if they are slated to be effectively functional for some more years.
While the modernization and expansion of the region's vehicle fleets continue at a healthy pace, the region is also becoming increasingly self-sufficient and independent of foreign countries by developing indigenous manufacturing capabilities. Several countries have been developing military vehicles on their own or are partnering with their foreign counterparts and manufacturing vehicles locally with the help of technology transfer agreements.
However, factors like fluctuations in oil prices are affecting the economies of several countries in Middle East, in turn affecting growth in military spending.
Over the past few years, the military equipment procurement of the region increased at a rapid pace, due to the conflicts in Yemen, Libya, and Somalia and the Sinai insurgency.
UAE plans to modernize all units of the UAE armed forces with new and advanced military equipment to continue developing capabilities. For instance, in February 2023, Nexter, the leading French land defense company, signed a teaming agreement with International Golden Group, the leading supplier of the UAE Armed forces, to prepare for the modernisation of the UAE Army's Leclerc main battle tank (MBT).
The UAE also intends to utilize the MRAP vehicles to increase force protection, conduct humanitarian assistance operations, and protect critical infrastructure. In February 2023, the first batch of 400 Rabdan 8x8 infantry fighting vehicles (IFVs) was delivered to the UAE Army and manufacturer Otokar is hopeful that additional orders will be placed in the future.
Iran has a very large fleet of wheeled and sand-blasted armored vehicles that can be equipped to carry out missions such as fire support by making a series of modifications. For example, BTR 50 and 60 series and BMP 1 and 2 personnel carriers are among these armored vehicles. Such robust plans of the government of countries in Middle East to rapidly increase the fleet of armored vehicles are anticipated to propel the growth of the military vehicles market in the coming years.
Turkey has been significantly investing in its defense industry and expanding production. The recent focus on domestic design and production stems from an increase in potential threats from Russia and various militant groups and from sanctions placed on Turkey's defense industry by its NATO allies. In this context, in May 2023, Turkey's FNSS Defence Systems was contracted to provide capability enhancement to the Turkish Army's ACV-15 advanced armored personnel carriers (AAPCs). The agreement was signed to boost the vehicle's performance and extend its service life for an additional 20 years. According to the company, an undisclosed number of AAPCs will be fitted with modern subsystems to support more missions and help address sophisticated threats on the battlefield.