Summary
Saudi Arabian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.
The Saudi Arabian defense expenditure is mainly fueled by its ongoing rivalry with Iran and regional instability. The country is increasingly wary of the growing influence of Iran in countries such as Iraq, Yemen, and Syria. Saudi Arabia has been compelled to maintain robust defense capabilities to counter Iranian geostrategic moves. The Saudi Arabian 2020 budget continues with the trend of fiscal consolidation which started in 2019, and has chosen to reduce defense expenditure by -8.3%. The 2020 budget focuses on strategic infrastructure projects to diversify the economy away from oil exports, while promoting enhanced participation of the country’s private sector. As a consequence, Saudi Arabia is expected to miss its budget deficit targets and therefore will be forced to continue its fiscal consolidation strategy to mitigate escalating budget deficit over the next three years. Post 2023, as the country’s economy stabilizes, the Saudi Arabian defense expenditure is anticipated to post a steady recovery over the period 2024-2025, and is anticipated to post a marginal growth of 0.53% over the forecast period, to eventually value US$45.4 billion in 2025.
The country’s capital expenditure marginally increased from US$13.1 billion in 2016 to US$14 billion in 2020, a CAGR of 1.77%, attributed primarily to the drastic erosion in global oil & gas prices worldwide. With Saudi Arabia deriving as much as 86% of its revenues from the export of Brent crude shipments, the continued low oil prices impacted revenue inflows, and caused the country’s economy to contract for two consecutive years in 2015 and 2016. With the world demand for oil expected to remain low due to the COVID-19 pandemic, the Saudi Arabian economy is anticipated to experience significant turmoil over the coming years. This is expected to reflect in the country’s defense procurements and the country’s defense capital expenditure is likely to remain stagnant.
Over the forecast period, the country is expected to invest in fighters and multi-role aircraft, border security, infantry fighting vehicles, main battle tanks, UAVs, cyber security, submarines, computer network defense capabilities, and naval vessels.
This report offers detailed analysis of the Saudi Arabian defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular, it provides an in-depth analysis of the following -
Scope
Reasons to Buy
Saudi Arabian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.
The Saudi Arabian defense expenditure is mainly fueled by its ongoing rivalry with Iran and regional instability. The country is increasingly wary of the growing influence of Iran in countries such as Iraq, Yemen, and Syria. Saudi Arabia has been compelled to maintain robust defense capabilities to counter Iranian geostrategic moves. The Saudi Arabian 2020 budget continues with the trend of fiscal consolidation which started in 2019, and has chosen to reduce defense expenditure by -8.3%. The 2020 budget focuses on strategic infrastructure projects to diversify the economy away from oil exports, while promoting enhanced participation of the country’s private sector. As a consequence, Saudi Arabia is expected to miss its budget deficit targets and therefore will be forced to continue its fiscal consolidation strategy to mitigate escalating budget deficit over the next three years. Post 2023, as the country’s economy stabilizes, the Saudi Arabian defense expenditure is anticipated to post a steady recovery over the period 2024-2025, and is anticipated to post a marginal growth of 0.53% over the forecast period, to eventually value US$45.4 billion in 2025.
The country’s capital expenditure marginally increased from US$13.1 billion in 2016 to US$14 billion in 2020, a CAGR of 1.77%, attributed primarily to the drastic erosion in global oil & gas prices worldwide. With Saudi Arabia deriving as much as 86% of its revenues from the export of Brent crude shipments, the continued low oil prices impacted revenue inflows, and caused the country’s economy to contract for two consecutive years in 2015 and 2016. With the world demand for oil expected to remain low due to the COVID-19 pandemic, the Saudi Arabian economy is anticipated to experience significant turmoil over the coming years. This is expected to reflect in the country’s defense procurements and the country’s defense capital expenditure is likely to remain stagnant.
Over the forecast period, the country is expected to invest in fighters and multi-role aircraft, border security, infantry fighting vehicles, main battle tanks, UAVs, cyber security, submarines, computer network defense capabilities, and naval vessels.
This report offers detailed analysis of the Saudi Arabian defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular, it provides an in-depth analysis of the following -
- The Saudi Arabian defense industry market size and drivers: detailed analysis of the Saudi Arabia's defense industry during 2021-2025, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities:list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Saudi Arabia's defense industry
Scope
- The Saudi Arabian defense market is expected to grow at a CAGR of 0.53% over the forecast period.
- The Saudi Arabian defense market has three major sectors: Critical Infrastructure Protection-Physical Security, Land Based C4ISR and Airborne C4ISR.
- Saudi Arabia is expected to cumulatively spend about US$64.6 billion to fund defense equipment procurement initiatives.
- The various procurements that have fueled the growth of the capital budget allocation include F-15 aircraft, UH-60M Black Hawk utility helicopters, C-130J-30 Aircraft,KC-130J Air Refueling Aircraft, Eurofighter Typhoon Fighter Aircraft, Light Armored Vehicles (LAVs), PATRIOT (PAC-2) Missiles Recertification, and aerial missile defense systems.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the Saudi Arabian defense market over the next five years
- Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Saudi Arabian market and identify the opportunities offered.
- Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
- Identify the major threats that are driving the Saudi Arabian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
- Channelize resources by focusing on the ongoing programs that are being undertaken by the Saudi Arabian government
- Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country.
- The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available
Table of Contents
1. Introduction
2. Market Attractiveness and Emerging Opportunities
3. Defense Procurement Market Dynamics
4. Industry Dynamics
5. Market Entry Strategy
6. Competitive Landscape and Strategic Insights
7. Business Environment and Country Risk
8. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- BAE Systems
- Airbus Group
- General Dynamics Corporation
- Lockheed Martin
- Science Applications International Corporation (SAIC)
- Sikorsky Aircraft Corporation
- Thales SA
- Boeing
- Northrop Grumman Corporation
- Advanced Electronics Company (AEC)
- Al Salam Aircraft Company
