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 |
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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 Saudi Arabia Defense Market is projected to exhibit steady growth in the coming years due to various factors. Despite a brief economic downturn in 2020 due to the COVID-19 pandemic, the country's economy has since rebounded, leading to an expected increase in procurement and R&D investments in the defense sector. Saudi Arabia is one of the top global military spenders and a major importer of arms from the United States, making the market attractive for numerous domestic and international players. The country's high defense spending is primarily due to its robust economy and high GDP. In recent years, the Saudi Arabian government has increased its focus on modernizing its military, with plans to procure new fighter jets, surface combatants, and armored vehicles, as well as investing more in C4ISR and cybersecurity solutions. However, the government has reduced its defense spending over the past three years to focus more on the education sector, and it plans to further decrease its military spending in the coming year. Additionally, a ban on Saudi Arabia by some European countries could impact the procurement of defense equipment, potentially hampering market growth during the forecast period. Despite these challenges, the ongoing political tensions in the Middle East have led to increased investment in the defense sector, with the Saudi Arabian government planning to modernize its military by 2030. The country is also strengthening its defense capabilities in response to these tensions, with several joint venture agreements having been signed since the establishment of the Saudi Arabian Military Industries (SAMI).
Explore MoreSaudi 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.
