Market Size of Saudi Arabia Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.75 Billion |
| Market Size (2029) | USD 20.64 Billion |
| CAGR (2024 - 2029) | 3.35 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Defense Market Analysis
The Saudi Arabia Defense Market size is estimated at USD 16.75 billion in 2024, and is expected to reach USD 20.64 billion by 2029, growing at a CAGR of 3.35% during the forecast period (2024-2029).
Saudi Arabia’s defense industry stands as a robust sector supported by substantial investment to modernize the country’s military capabilities in a geopolitically unstable region. With a strategic focus on modernizing defense capabilities, Saudi Arabia consistently allocates a significant portion of its budget to defense. Saudi’s Vision 2030 initiative further highlights the defense budget. It aims to diversify the economy and increase indigenous manufacturing capabilities.
The Saudi defense industry witnessed significant growth, driven by factors such as geopolitical tensions, regional conflicts, and the need to protect national interests. The country includes a strategic location in the Middle East, combined with a major oil exporting country, underscores the importance of maintaining strong defense capability to safeguard its borders and ensure stability in the region. Thus, Saudi Arabia is making substantial investments in modernizing its forces, purchasing advanced weapons systems, and improving its defense infrastructure.
On the other hand, the Saudi Arabia defense industry faces several challenges that could impact its growth trajectory. The primary restraint is the vulnerability to fluctuations in global oil prices, as the annual defense budget of Saudi Arabia heavily relies on the country’s oil revenues.
Saudi Arabia Defense Industry Segmentation
The Saudi Arabian defense market covers all aspects of military vehicles, armament, and other equipment procurements and provides insights into budget allocation and spending.
The Saudi Arabia market is segmented by type. By type, the market is segmented into personnel training, simulation and protection equipment, communication systems, weapons and ammunition, and vehicles. The weapons and ammunition segment is further segmented into artillery and mortar systems, infantry weapons, missile and missile defense systems, and ammunition. The vehicles segment is further classified into land-based vehicles, sea-based vehicles, and air-based vehicles. For each segment, the market size is provided in terms of value (USD).f
| Type | ||||||
| Personnel Training, Simulation, and Protection Equipment | ||||||
| Communication Systems | ||||||
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Saudi Arabia Defense Market Size Summary
The defense industry in Saudi Arabia is a vital sector characterized by significant investments aimed at modernizing military capabilities in a region marked by geopolitical instability. The country's strategic focus on enhancing defense capabilities is underscored by substantial budget allocations, which are further emphasized by the Vision 2030 initiative. This initiative aims to diversify the economy and boost indigenous manufacturing within the defense sector. The Saudi defense industry has experienced notable growth due to factors such as regional conflicts, geopolitical tensions, and the necessity to safeguard national interests. The country's strategic location and its status as a major oil exporter highlight the importance of maintaining robust defense capabilities to protect its borders and ensure regional stability. Consequently, Saudi Arabia is investing heavily in modernizing its forces, acquiring advanced weapon systems, and upgrading defense infrastructure.
Despite the growth, the Saudi defense industry faces challenges, primarily due to its dependence on oil revenues, which makes it vulnerable to fluctuations in global oil prices. The ongoing Iran-Saudi Arabia proxy conflict and the involvement of global superpowers in regional conflicts have further intensified the need for advanced military assets. The regional security environment has also shifted, with increasing emphasis on naval power to secure sea lines of communication and protect economic zones. The Saudi Naval Expansion Program II exemplifies the country's commitment to naval modernization, driven by the need to counter Iranian naval power. The defense market in Saudi Arabia is consolidated, with key players like Lockheed Martin, Boeing, SAMI, Leonardo S.p.A., and RTX Corporation holding significant market shares. The government is also focusing on enhancing local defense manufacturing capabilities, aiming to increase the share of publicly held defense manufacturers in the market.
Saudi Arabia Defense Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Personnel Training, Simulation, and Protection Equipment
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2.1.2 Communication Systems
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2.1.3 Weapons and Ammunition
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2.1.3.1 Artillery and Mortar Systems
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2.1.3.2 Infantry Weapons
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2.1.3.3 Missile and Missile Defense Systems
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2.1.3.4 Ammunitions
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2.1.4 Vehicles
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2.1.4.1 Land-based Vehicles
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2.1.4.2 Sea-based Vehicles
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2.1.4.3 Air-based Vehicles
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Saudi Arabia Defense Market Size FAQs
How big is the Saudi Arabia Defense Market?
The Saudi Arabia Defense Market size is expected to reach USD 16.75 billion in 2024 and grow at a CAGR of 3.35% to reach USD 20.64 billion by 2029.
What is the current Saudi Arabia Defense Market size?
In 2024, the Saudi Arabia Defense Market size is expected to reach USD 16.75 billion.
