US faces stiff competition in North African armoured vehicles market (Defence Insight)

US companies have historically benefited the most from North African demand for new armoured vehicles, but there are indications that US market dominance may begin to be eroded over the next ten years by new players from emerging defence markets, as well as more established competitors from Western Europe, Russia and China.  

Although General Dynamics Land Systems (GDLS) could receive a contract worth more than $1.2 billion to deliver additional upgraded M1A1 Abrams MBTs to Morocco, Germany’s Rheinmetall and Russia’s Uralvagonzavod (UVZ) both look primed to secure more than $3.5 billion of armoured vehicle sales to North Africa over the next ten years. 

Taken together, companies from the UAE are forecast to take at least $1.5 billion in contracts to North African countries. Algeria and Egypt are expected to be the biggest clients, reflecting a strong demand for the 4x4 protected vehicles offered by companies such as Nimr and MSPV, both of which have set up assembly lines in North Africa. 

Similarly, both Turkey and China could look to expand their footprint in the region’s armoured vehicles marketplace, with both able to offer a broad range of capable military equipment at an affordable price point with few political strings attached. 

For North African governments that need to balance a strong appetite for new armoured vehicles with the constraints of relatively small defence budgets, dealing with these newcomers to the marketplace could prove an attractive alternative to buying their equipment from the US.

Forecast North African Armoured Vehicle Market Shares, 2021-2030

Existing programmes indicate that US companies could be ceding ground in the North African armoured vehicles market to their competitors.