Demand for Armored Vehicles in Africa

Demand for armored vehicles in Africa is growing at an exponential rate as increasing internal and cross-border conflicts across Africa accelerate and create a huge market for security armored vehicles of all kinds.

According to a recent report, the global armored vehicles market is expected to grow to US$ 26.37 billion by 2027, growing at a CAGR of 5.7%. On the other hand, the Middle-East & Africa armored vehicles market is projected to register a CAGR of more than 2.5% in the same period. 

In Africa, the demand for armored cars and vehicles has been growing at a steady pace due to the rising intensity of cross-border tensions across several African states. For example, in East Africa, recent tensions between Ethiopia and Somalia have always been high, even resulting in frequent border skirmishes in some cases. Similarly, cross-border skirmishes between Sudan and South Sudan have become commonplace. In many other regions also such tensions have escalated in recent years.

Armored Vehicles: Rising Demand in Africa

Steady ramping up of military expenditure by many African countries will prove beneficial for this market for armored vehicles. Many African countries are in the process of upgrading their defense forces with modern weaponry to better equip their soldiers in the battlefield, which augurs well for this market as armored vehicles are vital in ground-level combat as well as in border patrolling activities during peacetime.

For instance, the complex military situation in Ethiopia and Eritrea has kept regions surrounding these countries in a mode of self-preservation. Moreover, historical internal conflicts such as the one in Tigray (Ethiopia) have kept governments on their toes. Armored vehicles are a key component in a nation’s military arsenal as they empower armed forces to efficiently monitor border situations and deter any forthcoming attacks.

Clearly, the geopolitical and military conflicts in Africa are driving the modernization plans of various military forces in Africa. Thus, the African continent needs to replace aging armored vehicle fleet with newer-generation armored vehicles.

Market for Armored Vehicles in Africa

Multi-lateral collaboration between African countries such as North Atlantic Treaty Organization (NATO) and the African Union to counter terrorism and maintain peace is also expected to favour market growth. The market is also anticipated to be driven by various African governments opting for the latest machinery to counter emergencies caused by insurgencies and militant attacks. Moreover, increasing communal riots and organized crimes in regions such as East Africa as well as North Africa are expected to drive market demand.

Increasing defense budgets, particularly in East Africa, is anticipated to further boost market growth. The goodwill of industry participants is expected to play a key role in contract allotments. Advancements such as increased fuel efficiency and use of high-tech sensors are expected to drive the market over the next few years.

Commercial Demand for Armored Vehicles in Africa

Commercial applications of armored vehicles include VIP protection, armed convoys, and patrols. Rising demand for rental and leasing protected van services owing to increasing awareness about personal safety is also expected to favor the growth of the commercial segment in the coming years.

Additionally, owing to soaring crime rates across several African countries, organizations and banks are opting for protected trucks or vans to carry valuables, transfer money from banks to ATMs, and transfer cash collected at large commercial establishments to banks.

Demand is specially high in Africa for Armored personnel carrier (APC), Infantry Fighting Vehicle (IFV), mine-resistant ambush-protected (MRAP), main battle tank (MBT), armored cars, vehicles carrying armored self-propelled artillery, light armored vehicles, armored ambulance, armored recovery vehicles, assault amphibious vehicle, armored vehicle-launched bridge (AVLB), armored utility vehicles, and other support vehicles.

The extensive use of armored vehicles during the recent Presidential elections in Uganda is also indicative of the rising demand for aromored vehicles in African countries.

United Arab Emirates: Anticipated Highest Growth

Over the past few years, the military equipment procurement of the UAE increased at a rapid pace, due to the involvement of the country in regional conflicts. The country also plans to modernize all units of the UAE armed forces with new and advanced military equipment to continue developing capabilities. In May 2020, the US government approved the sales of about 4,569 Mine Resistant Ambush Protected (MRAP) armored vehicles, under the Excess Defense Articles program. 

Similarly, in February 2019, the UAE government signed an initial procurement contract worth US$ 2.7 million for four of the Mbombe 4x4 armored vehicles from Paramount. These vehicles can be integrated with a variety of different weapons and payloads, from 30mm cannon turret and cameras to an electronic warfare suite to support a wide range of missions. If the vehicles meet the requirements of the UAE army, the government will increase the number of Mbombe vehicles on order. Such robust plans of the government to rapidly increase the fleet of armored vehicles are anticipated to propel the growth of the market in the coming years.

Competitive Landscape

Some of the prominent players in the Middle-East & African armored vehicles market are Mahindra & Mahindra Limited, NIMR Automotive LLC, STREITGroup, BMC Otomotiv Sanayi ve Ticaret A?., and KocHolding AS. The market of the armored vehicles has both regional and international players with significant shares in the market. 

In addition to the efforts of the international players, the domestic players in the market are increasing their product portfolio to enhance their position in the market. For instance, BMC’s Tulgaarmored pickup truck, developed for the Turkish internal security forces, is expected to enter mass production. The company claims that armored vehicles are expected to become prominent options in the Middle-East in the coming years. Such factors are anticipated to help the companies increase their presence in, and attain profits from, the region in the coming years.

In fact, several domestic players in the UAE market have been using marketing and promotion services of Africa Business Pages to reach buyers in Africa by advertising their products and services through Africa Business Pages and its associate network of Africa-centric B2B portals. Notable among them are Harrow Security Vehicles, SchutzCarr Armored Cars as well as Emirates Special Vehicles (ESV).

Demand for Armored Vehicles in Africa

“Africa is an important market for armored vehicles and we are happy to partner with Africa Business Pages to promote our products and services in the lucrative African markets,” says Saleem Ansari, Executive Director of Emirates Special Vehicles (ESV). “By showcasing our state-of-the-art armored vehicles to our target audiences through Africa Business Pages, we aim to further expand our sales network across the African continent,” he says.