Saudi Arabia Defense Market, By Platform (Air-based Systems, Land-based Systems, Naval Systems); By Type (Weapons & Ammunition, Communication Systems, Radar & Surveillance Systems, Electronic Warfare Systems, Cybersecurity & Defense Tech); By End User (Ar

Saudi Arabia Defense Market Size Set to Surpass USD 60 Billion by 2031

Saudi Arabia Defense Market is flourishing due to substantial military expenditure and an expanding network of strategic partnerships driven by the ambitious Vision 2030 initiative.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia Defense Market size at USD 43.5 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Saudi Arabia Defense Market size to expand at a CAGR of 4.75% reaching a value of USD 60.2 billion by 2031. The growth of Defense Market in Saudi Arabia is propelled by the Kingdom's strategic emphasis on military modernization, technological leadership, and the indigenization of its defense sector. As a global leader in defense expenditure, Saudi Arabia maintains a robust budgetary allocation towards enhancing its military prowess and regional stability. The transformative Vision 2030 sets an ambitious target of increasing local defense procurement from a modest 2% to a substantial 50%, fostering a dynamic environment for domestic and international collaborations. The recent 2024 agreement with Leonardo for joint ventures in aerospace and cross-domain defense technologies exemplifies this trend. Saudi Arabia is also strategically expanding its military workforce and prioritizing cutting-edge capabilities in cybersecurity, digital transformation, and autonomous systems. Moreover, strategic partnerships with countries like South Korea and India are instrumental in strengthening its defense industrial foundation, positioning Saudi Arabia as an increasingly influential hub for defense innovation in the Middle Eastern landscape.

Opportunity - R&D and Tech Innovations

Saudi Arabia Defense Market is projected to record significant growth, propelled by a strategic and concerted focus on indigenous Research and Development (R&D) and the integration of cutting-edge technological innovations, a proactive approach spearheaded by entities like the Saudi General Authority for Defense Development (GADD) and industry leaders such as Saudi Arabian Military Industries (SAMI) and its advanced electronics division, SAMI-AEC, evidenced by substantial investments exceeding SAR 1.6 billion in 2024 and groundbreaking advancements showcased at events like the JISR 2025 Forum where the innovative prowess of local universities and researchers translates theoretical concepts into tangible, market-ready solutions; at the forefront of this technological renaissance stands SAMI-AEC, epitomizing the fusion of R&D with practical application through the unveiling of advanced systems like the eBariq Drone and the Al-Rasid Ground Surveillance Radar at IDEX 2025, representing concrete advancements in surveillance, reconnaissance, and security; furthermore, the emphasis on integrating advanced technologies such as Artificial Intelligence (AI) in unmanned systems and the development of indigenous cybersecurity solutions highlight Saudi Arabia's commitment to future-proofing its defense capabilities, fostering self-sufficiency, attracting international attention, and ultimately charting a unique and robust growth trajectory for the Kingdom's defense sector through the strategic prioritization of R&D and the relentless pursuit of technological innovation.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Defense Market

Intensifying geopolitical tensions could influence the growth of Saudi Arabia Defense Market. Regional instability, notably in the Middle East, fuels increased defense spending for national security and military readiness due to ongoing conflicts and strained relations. This drives investments in advanced weaponry, surveillance, and cybersecurity. However, tensions could disrupt supply chains, delay procurement, and influence defense partnerships and technology access. While stimulating market growth, these tensions highlight the need for a resilient, self-reliant Saudi defense infrastructure.

Air-based Systems Dominate Saudi Arabia Defense Market

Based on the strong emphasis on modernizing aerial capabilities with significant acquisitions like the Eurofighter Typhoon and F-15SA upgrades, coupled with the strategic importance of air power for regional dominance and addressing aerial threats in the volatile Middle East, the air-based systems segment likely holds the highest share in the Saudi Arabia Defense Market by platform. Historically, Saudi Arabia has been a major procurer of advanced military aircraft, and the ongoing investments in sophisticated strike platforms and air defense systems, while the nation pursues its Vision 2030 goals, indicate a continued prioritization of this domain over land-based and naval systems in terms of market size.

Competitive Landscape

Major companies in Saudi Arabia Defense Market include Saudi Arabian Military Industries (SAMI), Raytheon Technologies Corporation (RTX Corporation), Almaz-Antei Corporation JSC, Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, Airbus SE, BAE Systems PLC, General Dynamics Corporation, and The Boeing Company. The presence of high number of companies intensify the market competition as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Saudi Arabia Defense Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Defense Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.