Saudi Arabia Defense Market

The Saudi Arabia defense market size was USD 14.65 Billion in 2022 and is likely to reach USD 21.01 Billion by 2031, expanding at a CAGR of 4.09% during 2023–2031. The growth of the market is attributed to the increasing defense acquisitions.

Saudi Arabia is the country in the Gulf region with a population of 33 million, and the biggest economy in the Arab World with a GDP of USD 782 billion. It is the only G-20-part country in the Middle East The Saudi Arabian Government (SAG) exercises control over economic activities and financial exercises of the nation's oil-based economy.

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Saudi Arabia holds 16% of the world's proven petrol reserve. It’s one of the world's biggest producer and exporter of unrefined petroleum, and is an enormous oil purifier and producer of natural gas. As indicated by Forbes Magazine, oil represents approximately 87% of budget revenues, 32% of GDP, and 81% of export profit.

Saudi Arabia strategies focus on drawing new foreign ventures, which were part of the talks at the Future Investment Initiative discussion held in Riyadh in October of 2019. 300 worldwide venture chiefs and policymakers joined at the event.

Saudi Arabia declared marking of $20 billion in investment deals during the event, including huge arrangements among Saudi Arabia- and the US-based organizations. The market in Saudi Arabia   is anticipated to expand at a high CAGR share during the forecast period owing to increasing defense budgets and modernization plans in emerging such as Middle East-based countries.

Market Trends, Drivers, Restraints, and Opportunities

• Rapid growth in the external security requirements is expected to boost the defense market growth.

• Increase in demand for UAV'S is one of the key factors driving the market expansion during the market in the coming years.

• The high adoption of advanced technology is one of the major factors spurring the market in the country.

• Growing security threats in Saudi Arabia is spurring the development of the market.

• Fluctuation in oil prices can hinder the growth of the market.

• Rising allocation towards defense budget is estimated to accelerate the growth of the market.

• Growing modernization of the navy fleet is expected to create lucrative opportunities during the forecast period.

Scope of Saudi Arabia Defense Market Report

The report on the Saudi Arabia defense market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Defense Market Segment Insights

Vehicles segment is expected to grow at a rapid pace

Based on types, the market is divided into personnel training, simulations, and protection equipment, communication systems, weapons and ammunitions, and vehicles. The weapons and ammunitions segment is further classified as artillery and mortar systems, infantry weapons, missile and missile defense systems, and ammunitions. The vehicles segment is further classified as land-based vehicles, sea-based vehicles, and air-based vehicles.

The vehicles segment is estimated to account for a significant share of the market due to increasing number of unmanned combat aircraft, multi-mission tactical vehicles, and better-armed protective vehicles, which represent unmet requirements that are likely to be the driving forces in the defense industry. The industry is highly consolidated in terms of suppliers and buyers, and is highly dependent on government spending.

The weapons and ammunitions segment is anticipated to grow at a rapid pace during the forecast period. Increasing demand for advanced ammunition to strengthen the defense is propelling the segment growth.

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Segments

The Saudi Arabia defense market has been segmented on the basis of

Types

• Personnel Training, Simulations
• Protection Equipment
• Communication Systems
• Weapons and Ammunitions
  • Artillery and Mortar Systems
  • Infantry Weapons
  • Missile and Missile Defense Systems
  • Ammunitions
• Vehicles
  • Land-based Vehicles
  • Sea-based Vehicles
  • Air-based Vehicles

Country

• Saudi Arabia

Key Players

• Saudi Arabian Military Industries
• BAE System PLC
• Lockheed Martin Corporation
• The Boeing Company
• Raytheon Technologies Corporation

Competitive Landscape

Key players competing in the Saudi Arabia defense market are Saudi Arabian Military Industries; BAE System PLC; Lockheed Martin Corporation; The Boeing Company and Raytheon Technologies Corporation.