Saudi Arabia Defense Market Overview

Market Size in 2025: USD 24,034.8 Million

Market Size in 2034: USD 33,077.1 Million

Market Growth Rate 2026-2034: 3.61%

According to IMARC Group's latest research publication, "Saudi Arabia Defense Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia defense market size was valued at USD 24,034.8 Million in 2025. Looking forward, IMARC Group estimates the market to reach USD 33,077.1 Million by 2034, exhibiting a CAGR of 3.61% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Defense Market

• AI-powered threat detection systems enhance Saudi Arabia's defense capabilities, analyzing satellite imagery and radar data to identify potential security threats across borders with unprecedented accuracy.
• Autonomous surveillance drones integrated with AI provide continuous monitoring of critical infrastructure and energy assets, improving response times and operational efficiency for Saudi defense forces.
• AI-driven cybersecurity platforms protect Saudi Arabia's military networks and critical systems from sophisticated cyberattacks, detecting anomalies and neutralizing threats in real-time effectively.
• Predictive maintenance algorithms optimize equipment readiness across Saudi Arabia's armed forces, reducing downtime and extending the operational lifespan of advanced military hardware significantly.
• AI-enhanced command and control systems enable faster decision-making during operations, processing vast amounts of battlefield data and providing actionable intelligence to Saudi military commanders instantly.

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How Vision 2030 is Transforming Saudi Arabia Defense Industry

Saudi Arabia's Vision 2030 is revolutionizing the defense industry by prioritizing domestic manufacturing, technological self-reliance, and economic diversification beyond oil dependence. The initiative drives demand for advanced military technologies while fostering local production capabilities through strategic partnerships with global defense manufacturers. This transformation aligns with ambitious localization goals, promoting indigenous defense manufacturing and reducing import dependency through entities like the General Authority for Military Industries and Saudi Arabian Military Industries. Local manufacturing incentives spur innovation and create thousands of high-skilled jobs, while international collaborations enable technology transfer and co-production agreements that build domestic expertise. Ultimately, Vision 2030 elevates the defense sector as a cornerstone of economic diversification, enhancing national security while positioning Saudi Arabia as a regional defense manufacturing hub capable of meeting both domestic needs and export opportunities across the Middle East.

Saudi Arabia Defense Market Trends & Drivers:

Saudi Arabia's defense market is experiencing robust growth, driven by consistently high defense spending and substantial budget allocation that positions the Kingdom among the world's top defense spenders. The government's commitment to defense investment is largely driven by the need to secure vast borders, critical oil infrastructure, and maritime routes, with substantial funds enabling procurement of advanced weapon systems, modernization of equipment, and expansion of military capacity across land, air, and naval forces. Budgetary allocation supports research, training, and technology transfer initiatives, while the availability of substantial funds enables Saudi Arabia to partner with global defense manufacturers, acquire state-of-the-art systems, and invest in next-generation technologies supporting comprehensive military modernization.

The growing focus on cybersecurity and digital defense is significantly fueling market growth as warfare evolves into digital domains. With critical sectors such as oil, finance, and government systems highly dependent on digital infrastructure, cyber threats pose serious national security risks, encouraging heavy investments in advanced cybersecurity frameworks, digital intelligence platforms, and electronic warfare solutions. Collaborations with global tech and defense companies are strengthening Saudi Arabia's cyber resilience, while domestic programs aim to train specialists in cyber defense, addressing the rising threat of cyberattacks targeting sensitive data, energy operations, and defense systems through sophisticated technological countermeasures.

Saudi Arabia Defense Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• 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

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Defense Market

• February 2025: The General Authority for Military Industries announced Saudi Arabia allocated defense spending for 2025, with the Kingdom becoming the fifth largest defense spender worldwide and the largest in the Arab world, while the localization rate of military industries continued its upward trajectory, reflecting ongoing efforts to develop a self-sufficient defense sector under Vision 2030 objectives.
• April 2025: The Royal Saudi Air Defense Forces announced graduation of the second unit trained to operate the Terminal High Altitude Area Defense missile defense system, completing training at Fort Bliss Military Base, building fully qualified Saudi operational and maintenance crews for one of the world's most advanced missile defense technologies as part of broader military modernization initiatives.
• May 2025: The United States and Saudi Arabia signed a landmark defense agreement during President Trump's visit to Riyadh, marking a new phase in the strategic partnership between Washington and Riyadh with clear focus on modernizing Saudi military equipment across all domains including air forces, missile defense, maritime security, land forces, and information systems, strengthening long-term interoperability between both armed forces and supporting localization goals.

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