Saudi Arabia Defense Market Report and Forecast 2024-2032

Saudi Arabia Defense Market Outlook

The Saudi Arabia defense market size is assessed to grow at a CAGR of 3.70% between 2024 and 2032. The market is being supported by the rising spending on defense in the country, surging geopolitical conflicts and regional instability, and the modernisation of defense equipment.

Key Trends in the Saudi Arabia Defense Market

The defense sector provides governments with various technologies, equipment, and solutions across naval, land, and aerial domains. It plays an integral role in safeguarding a nation, improving the economy, promoting social and civic cohesion, and boosting the diplomatic influence of a country in global affairs.

• Saudi Arabia is one of the largest defense spenders in the world, supported by rising concerns regarding geopolitical conflicts, growing regional instability, and favourable government initiatives.

• The Saudi Arabia defense market growth is being fuelled by the increasing focus of the country’s government on modernising its defence equipment and integrating advanced radars and sensors into its aircraft and weaponry to undertake diverse missions, ranging from ground attack to air superiority, while immediately responding to the rising number of threats.

• The rising focus on localisation to reduce import dependency, create jobs, and diversify income sources, among others, is one of the key Saudi Arabia defense market trends. Under Vision 2030, the Saudi Arabian government aims to localise over 50% of spending on military and equipment by prioritising areas like arms, maintenance and repair of aviation and navy, ammunition, and navy structural components and platforms.

• Technological advancements and innovations are expected to fuel the Saudi Arabia defense market demand in the coming years. Technologies such as artificial intelligence, quantum technology, lethal autonomous weapons, biotechnology, big data, and hypersonic weapons, among others, can boost defence capabilities, gather real-time insights to improve decision-making capabilities, and combat modern age threats such as cyberattacks.

Market Analysis

Based on armed forces, the Saudi Arabia defense market segmentation includes army, navy, and air force. On the basis of type, the market can be divided into weapons and ammunition, vehicles, communication systems, and personnel training, simulation, and protection equipment.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Saudi Arabia defense market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Raytheon Technologies Corporation 

• Northrop Grumman Corporation 

• L3Harris Technologies Inc. 

• BAE Systems plc 

• Airbus SE 

• Thales Group 

• The Boeing Company 

• Lockheed Martin Corporation 

• Leonardo S.p.A. 

• Saudi Arabian Military Industries 

• General Dynamics Corporation 

• Others

Market Share by Armed Forces

The air force accounts for a significant portion of the Saudi Arabia defense market share, aided by the modernisation of air equipment and surging security concerns. The increasing investments in unmanned systems and anti-air and missile-defense systems are further aiding the segment’s growth.

The navy is also expected to witness a healthy growth in the coming years with the rising focus on maritime security in the country. The navy plays a crucial role in protecting offshore assets and providing warnings related to missile and air attacks, hence the Saudi Arabian government is increasingly procuring advanced naval equipment to enhance its naval capabilities.

Market Share by Type

According to the Saudi Arabia defense market analysis, the demand for weapons and ammunition is significantly surging.  Ammunitions and weapons play an integral role during combats and wartimes to reduce the capability of the enemy for further resistance.

With rising tensions between the country and its neighbours like Iran and the UAE, the government is increasingly procuring ammunition and weapons from the United States and its European allies. Moreover, the increasing development of advanced weapons that have excellent range and are GPS-guided is likely to bolster the segment’s growth in the forecast period.

Competitive Landscape

Raytheon Technologies Corporation, an RTX business, is a prominent defense and aerospace company, headquartered in Virginia, the United States. The company leverages various technologies to deliver innovative solutions to its customers.  Through its advanced solutions, it aims to drive innovations in defense and aviation.

Northrop Grumman Corporation is a leading technology and defense company that was founded in 1939. Headquartered in Virginia, the United States, the company is engaged in designing and building advanced aircraft, cyber solutions, naval systems, and weapons.

Leonardo S.p.A., headquartered in Rome, Italy, is a leading player in the defence, aerospace, and security sectors. The company operates 105 sites globally and some of its business areas are automation, cyber and security, helicopters, space, electronics, and aerostructures. Since its foundation in 1948, Leonardo has emerged as a leading technology partner of institutions, armed forces, and governments.

Other Saudi Arabia defense market players include L3Harris Technologies Inc., BAE Systems plc, Airbus SE, Thales Group, The Boeing Company, Lockheed Martin Corporation, Saudi Arabian Military Industries, and General Dynamics Corporation, among others.

Key Highlights of the Report