Saudi Arabia Defense Industry Analysis - Market Growth, Size & Forecast Report (2025 - 2030)

The Saudi Arabia Defense Market Report is Segmented by Type (personnel Training, Simulation, and Protection Equipment, Communication Systems, Weapons and Ammunition (artillery and Mortar Systems, Infantry Weapons, Missile and Missile Defense Systems, and Ammunitions), and Vehicles (land-Based Vehicles, Sea-Based Vehicles, and Air-Based Vehicles)). The Report Offers Market Size and Forecast for the Above Segment in Value (USD).

Saudi Arabia Defense Industry Analysis - Market Growth, Size & Forecast Report (2025 - 2030)

Saudi Arabia Defense Market Size

Saudi Arabia Defense Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 17.31 Billion
Market Size (2030) USD 20.41 Billion
CAGR (2025 - 2030) 3.35 %
Market Concentration High

Major Players

Saudi Arabia Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Saudi Arabia Defense Market with other markets in Aerospace & Defense Industry

Defense

Airport Operations

Aviation

Aerospace & Defense Technology

Air Taxi

Aircraft Parts

Saudi Arabia Defense Market Analysis

The Saudi Arabia Defense Market size is estimated at USD 17.31 billion in 2025, and is expected to reach USD 20.41 billion by 2030, at a CAGR of 3.35% during the forecast period (2025-2030).

The Saudi Arabian defense industry continues to demonstrate robust growth amid evolving regional security dynamics and technological advancement initiatives. As the world's fifth-largest military defense spender in 2022, Saudi Arabia maintains a strong focus on military modernization and capability enhancement. The country's defense budget reached USD 69 billion in 2023, representing approximately 23% of its total budget, with a further increase to USD 71.72 billion allocated for 2024. This substantial investment reflects the kingdom's commitment to maintaining regional stability and protecting its strategic interests in the Middle East.


The industry is undergoing a significant transformation through strategic international partnerships and technology transfer initiatives. Currently, only 2% of the country's total military spending is directed towards local defense companies, but under Vision 2030, Saudi Arabia aims to increase local military equipment spending to 50%. This localization drive has sparked numerous collaborative ventures, exemplified by Leonardo's 2024 MoU with the kingdom for aerospace and defense collaboration, focusing on combat air and cross-domain integration fields. These partnerships are instrumental in developing indigenous manufacturing capabilities and creating a sustainable local defense systems ecosystem.


Saudi Arabia's military modernization strategy encompasses comprehensive force structure development, with approximately 277,000 military personnel deployed across various branches. The kingdom is actively pursuing advanced technological integration, particularly in military cybersecurity and digital transformation. This focus is evidenced by the signing of multiple cybersecurity cooperation memoranda of understanding in 2023 with Romania, Qatar, Spain, and Kuwait, along with a USD 7 million contract with IronNet for cybersecurity advisory services.


The industry is witnessing a paradigm shift towards autonomous systems and advanced military technology. Recent developments include significant investments in unmanned aerial vehicles (UAVs), artificial intelligence, and advanced communication systems. In early 2024, the kingdom has strengthened its defense cooperation through strategic agreements with South Korea and India, focusing on technology transfer, joint military exercises, and defense industrial engagement. These collaborations are particularly focused on developing autonomous capabilities, cybersecurity solutions, and advanced weapon systems, positioning Saudi Arabia as an emerging hub for defense technology innovation in the Middle East region.

Segment Analysis: By Type

Vehicles Segment in Saudi Arabia Defense Market

The vehicles segment dominates the Saudi Arabia defense market, commanding approximately 70% market share in 2024. This significant market position is driven by Saudi Arabia's strategic focus on enhancing its military mobility and mechanized capabilities across air, land, and sea domains. The country's substantial investments in advanced fighter aircraft, naval vessels, armored vehicles, and transport platforms reflect its commitment to maintaining a modern and capable defense systems force. The air-based vehicles subsegment represents the largest portion within vehicles, followed by naval vessels and land-based platforms, demonstrating Saudi Arabia's comprehensive approach to military modernization across all domains. Recent procurement programs, including contracts for military helicopters, naval vessels, and armored vehicles, along with the kingdom's push for local manufacturing capabilities through partnerships with global defense contractors, further strengthen this segment's market leadership.

Market Analysis of Saudi Arabia Defense Market: Chart for By Type

Communication Systems Segment in Saudi Arabia Defense Market

The military communications systems segment is projected to experience the highest growth rate of approximately 5% during the forecast period 2024-2029. This accelerated growth is driven by Saudi Arabia's increasing focus on developing robust and secure military communications networks to facilitate coordination and information exchange among military units. The segment's expansion is supported by significant investments in advanced communication technologies, including encrypted systems, satellite communications, and network-centric warfare capabilities. The kingdom's emphasis on cybersecurity and digital transformation in military operations, coupled with initiatives to develop local manufacturing capabilities through partnerships with international defense contractors, is expected to sustain this growth momentum. Recent developments, including the establishment of joint ventures with global communication system providers and investments in indigenous production facilities, demonstrate Saudi Arabia's commitment to enhancing its military communication capabilities.

Remaining Segments in Saudi Arabia Defense Market

The weapons systems and ammunition segment, along with personnel training, simulation, and protection equipment, constitute important components of Saudi Arabia's defense market. The weapons systems segment encompasses a wide range of systems including artillery, infantry weapons, missile systems, and various types of ammunition, playing a crucial role in maintaining the kingdom's defensive capabilities. The personnel military training and simulation segment focuses on developing human capital and operational readiness through advanced training systems and protective equipment. Both segments benefit from Saudi Arabia's Vision 2030 initiative, which emphasizes local manufacturing capabilities and technological advancement in the defense sector. These segments continue to evolve with the integration of advanced technologies, simulation systems, and modern training methodologies to enhance the overall combat effectiveness of Saudi Arabian armed forces.

Saudi Arabia Defense Industry Overview

Top Companies in Saudi Arabia Defense Market

The Saudi Arabian defense market features prominent global players like Lockheed Martin, Boeing, BAE Systems, RTX Corporation, and Northrop Grumman, alongside the domestic champion Saudi Arabian Military Industries (SAMI). These companies demonstrate strong product innovation capabilities through continuous investment in research and development of advanced defense systems, from missile defense to cybersecurity solutions. The industry shows remarkable operational agility through strategic partnerships and joint ventures aimed at localizing production and enhancing technological capabilities within the kingdom. Companies are actively pursuing expansion through collaboration with Saudi entities, establishing local manufacturing facilities, and participating in technology transfer initiatives aligned with Vision 2030's goals of indigenous defense manufacturing. Strategic moves include significant investments in digital transformation, unmanned systems development, and the integration of artificial intelligence across military technology platforms.

Market Structure Evolves Through Strategic Partnerships

The Saudi defense market exhibits a unique structure characterized by the strong presence of global defense conglomerates working alongside emerging local specialists. The market demonstrates a moderate level of consolidation, with major international players maintaining significant market share while actively supporting the development of domestic capabilities through technology transfer agreements and joint ventures. The landscape is evolving through strategic partnerships between international OEMs and local entities, particularly through SAMI's role as a catalyst for domestic defense industrial development.


The market is witnessing increased merger and acquisition activity, primarily focused on strengthening local manufacturing capabilities and expanding technological expertise. International players are establishing long-term partnerships with Saudi entities, creating joint ventures for local production, and investing in research and development facilities within the kingdom. This transformation is driven by the government's push for localization under Vision 2030, which has created opportunities for both established players and new entrants to participate in the growing domestic defense ecosystem through various collaboration models and investment structures.

Innovation and Localization Drive Market Success

Success in the Saudi defense market increasingly depends on companies' ability to align with the kingdom's localization objectives while maintaining technological leadership. Incumbent players must focus on developing strong local partnerships, investing in domestic manufacturing capabilities, and contributing to the development of Saudi Arabia's defense technology base. Companies need to demonstrate commitment to knowledge transfer, workforce development, and the establishment of robust supply chains within the kingdom while maintaining their competitive edge through continuous innovation and adaptation to evolving security requirements.


For contenders seeking to gain market share, the path to success lies in identifying niche capabilities that complement existing defense equipment programs while offering unique value propositions aligned with Saudi Arabia's strategic priorities. The market presents relatively low substitution risk due to the specialized nature of aerospace and defense equipment and long-term procurement cycles, but regulatory requirements increasingly emphasize local content and technology transfer. The concentrated nature of end-user decision-making, primarily through government procurement channels, necessitates strong relationship building and long-term commitment to the Saudi market, while compliance with evolving defense industry regulations and offset requirements remains crucial for sustained success.

Saudi Arabia Defense Market Leaders

  1. Lockheed Martin Corporation

  2. The Boeing Company

  3. SAMI

  4. RTX Corporation

  5. Leonardo S.p.A.

  6. *Disclaimer: Major Players sorted in no particular order
Saudi Arabia Defense Market Overview
Need More Details on Market Players and Competiters?
Download PDF

Saudi Arabia Defense Market News

  • February 2024: Lockheed Martin Corporation signed a contract with Indra to equip the four Multi-Mission Surface Combat Ships (MMSCs). It will be delivered to the Royal Saudi Arabian Navy with an advanced electronic defense system capable of detecting the presence of any platform and classifying it by threat level.
  • December 2023: The US State Department approved a possible Foreign Military Sale to Saudi Arabia of RE-3A Tactical Airborne Surveillance System (TASS) aircraft modernization and related equipment for USD 582 million. The US Defense Security Cooperation Agency (DSCA) stated that Saudi Arabian defense forces requested to purchase hardware and software modifications to modernize its fleet of RE-3A TASS aircraft.

Saudi Arabia Defense Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Bargaining Power of Suppliers
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Threat of New Entrants
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Type
    • 5.1.1 Personnel Training, Simulation, and Protection Equipment
    • 5.1.2 Communication Systems
    • 5.1.3 Weapons and Ammunition
    • 5.1.3.1 Artillery and Mortar Systems
    • 5.1.3.2 Infantry Weapons
    • 5.1.3.3 Missile and Missile Defense Systems
    • 5.1.3.4 Ammunitions
    • 5.1.4 Vehicles
    • 5.1.4.1 Land-based Vehicles
    • 5.1.4.2 Sea-based Vehicles
    • 5.1.4.3 Air-based Vehicles

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Saudi Arabian Military Industries (SAMI)
    • 6.1.2 Lockheed Martin Corporation
    • 6.1.3 The Boeing Company
    • 6.1.4 BAE Systems plc
    • 6.1.5 RTX Corporation
    • 6.1.6 Northrop Grumman Corporation
    • 6.1.7 General Dynamics Corporation
    • 6.1.8 Leonardo S.p.A.
    • 6.1.9 Airbus SE
    • 6.1.10 Textron Inc.
    • 6.1.11 THALES
    • 6.1.12 L3Harris Technologies, Inc.
    • 6.1.13 Navantia S.A.
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

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
Weapons and Ammunition Artillery and Mortar Systems
Infantry Weapons
Missile and Missile Defense Systems
Ammunitions
Vehicles Land-based Vehicles
Sea-based Vehicles
Air-based Vehicles
Need A Different Region or Segment?
Customize Now

Saudi Arabia Defense Market Research FAQs

How big is the Saudi Arabia Defense Market?

The Saudi Arabia Defense Market size is expected to reach USD 17.31 billion in 2025 and grow at a CAGR of 3.35% to reach USD 20.41 billion by 2030.

What is the current Saudi Arabia Defense Market size?

In 2025, the Saudi Arabia Defense Market size is expected to reach USD 17.31 billion.

Who are the key players in Saudi Arabia Defense Market?

Lockheed Martin Corporation, The Boeing Company, SAMI, RTX Corporation and Leonardo S.p.A. are the major companies operating in the Saudi Arabia Defense Market.

What years does this Saudi Arabia Defense Market cover, and what was the market size in 2024?

In 2024, the Saudi Arabia Defense Market size was estimated at USD 16.73 billion. The report covers the Saudi Arabia Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Saudi Arabia Defense Market Research

Mordor Intelligence delivers a comprehensive analysis of the defence sector. We leverage extensive expertise in military intelligence and homeland security research. Our detailed report covers crucial aspects, including military technology, electronic warfare, and defense systems. This provides deep insights into Saudi Arabia's evolving military operations and defense infrastructure. The analysis encompasses military equipment, air defense capabilities, and naval defense systems. It also examines critical developments in military cybersecurity and defense technology. Available as an easy-to-read report PDF for download, this research presents a thorough evaluation of military modernization initiatives and defense manufacturing capabilities.

Stakeholders gain valuable insights into military training programs, defense logistics, and weapons systems development through this comprehensive analysis. The report examines military communications, land defense capabilities, and armed forces equipment. It also analyzes the broader aerospace and defense sector dynamics. Our research supports strategic decision-making across the national defense spectrum. It offers a detailed assessment of defense equipment procurement and military defence strategies. The report provides actionable intelligence on defense infrastructure development and military operations, enabling stakeholders to navigate the complex landscape of Saudi Arabia's evolving defense sector.

Saudi Arabia Defense Market Report Snapshots