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Saudi Arabian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

  • ID: 5067820
  • Report
  • May 2020
  • Region: Saudi Arabia
  • 167 pages
  • GlobalData
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FEATURED COMPANIES

  • Airbus Group
  • Al Salam Aircraft Company
  • BAE Systems
  • Boeing
  • Lockheed Martin
  • Thales SA
  • MORE
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 -
  • 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
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Airbus Group
  • Al Salam Aircraft Company
  • BAE Systems
  • Boeing
  • Lockheed Martin
  • Thales SA
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defence Intelligence
1.5. Executive Summary

2. Market Attractiveness and Emerging Opportunities
2.1. Current Market Scenario
2.2. Defense Market Size Historical and Forecast
2.3. Analysis of Defense Budget Allocation
2.4. Homeland Security Market Size and Forecast
2.5. Benchmarking with Key Global Markets
2.6. Market Opportunities: Key Trends and Drivers

3. Defense Procurement Market Dynamics
3.1. Import Market Dynamics
3.2. Export Market Dynamics

4. Industry Dynamics
4.1. Five Forces Analysis
4.2. Bargaining power of supplier: Low to Medium
4.3. Bargaining power of buyer: Medium
4.4. Barrier to entry: Medium
4.5. Intensity of rivalry:Medium to High
4.6. Threat of substitution: High

5. Market Entry Strategy
5.1. Market Regulation
5.2. Defense industry remains closed to FDI
5.3. Offset Program to aid defense industry and economy
5.4. Market Entry Route
5.5. Key Challenges

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.2. Key Foreign Companies
6.3. Key Domestic Companies

7. Business Environment and Country Risk
7.1. Economic Performance

8. Appendix
8.1. About the Publisher
8.2. Disclaimer

List of Tables
Table 1: Saudi Arabian - Ongoing Development and Procurement Programs
Table 2: Saudi Arabian - Future Procurement Programs
Table 3: Top Saudi Arabian Defense Procurement Programs by Value (US$ Million) 2020-2025
Table 4: Saudi Arabian Defense Cooperation
Table 5: Saudi Arabian Military Training Exercises
Table 6: Saudi Arabian Defense Expenditure (SAR Billion and US$ Billion), 2016-2025
Table 7: Saudi Arabia GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2016-2025
Table 8: Saudi Arabia Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Table 9: Saudi Arabia Defense Capital Expenditure (SAR billion and US$ billion), 2016-2025
Table 10: Saudi Arabian Per-Capita Defense Expenditure (US$), 2016-2025
Table 11: Saudi Arabian Homeland Security Expenditure (SAR billion & US$ billion), 2016-2025
Table 12: Benchmarking with Key Markets, 2016-2020 v/s 2021-2025
Table 13: Top Saudi Arabian Defense Market Sectors by Value (US$ Million) -2020-2025
Table 14: Saudi Arabia - Offset Guidelines and Agreements
Table 15: Market Entry by Key Foreign Competitors
Table 16: Top Defense Suppliers in The Saudi Arabian Defense Industry - By Value (US$ Million) 2020-2025
Table 17: Competitive Landscape of the Saudi Arabian Defense Industry
Table 18: BAE Systems Plc. - Product Focus
Table 19: BAE Systems Plc. - Alliances
Table 20: BAE Systems Plc. - Recent Contract Wins
Table 21: AirbusGroup - Product Focus
Table 22: Airbus Group- Alliances
Table 23: Airbus Group- Recent Contract Wins
Table 24: General Dynamics Corporation - Product Focus
Table 25: General Dynamics Corporation - Alliances
Table 26: General Dynamics Corporation - Recent Contract Wins
Table 27: Lockheed Martin - Product Focus
Table 28: Lockheed Martin - Alliances
Table 29: Lockheed Martin - Recent Contract Wins
Table 30: Science Application International Corp. (SAIC) - Product Focus
Table 31: Science Applications International Corporation - Alliances
Table 32: Science Applications International Corporation - Recent Contract Wins
Table 33: Sikorsky Aircraft Corporation - Product Focus
Table 34: Sikorsky Aircraft Corporation - Alliances
Table 35: Sikorsky Aircraft Corporation - Recent Contract Wins
Table 36: Thales - Product Focus
Table 37: Thales - Alliances
Table 38: Thales - Recent Contract Wins
Table 39: Boeing - Product Focus

List of Figures
Figure 1 : Saudi Arabian Defense Budget: 2021 and 2025
Figure 2 : Saudi Arabian Defense Imports/Exports: 2015 and 2019
Figure 3 : Saudi Arabia’s Top Five Prospective Procurements/Developments
Figure 4: Saudi Arabian National Security Threats
Figure 5: Saudi Arabia’s Partner Countries for Defense Cooperation and Military Training
Figure 6: Saudi Arabian Defense Expenditure(SAR Billion), 2016-2025
Figure 7: Saudi Arabian Defense Expenditure (US$ Billion), 2016-2025
Figure 8: Saudi Arabian GDP Growth vs. Defense Expenditures Percentage of GDP Growth, 2016-2025
Figure 9:Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Figure 10: Saudi Arabian Capital Expenditure (in SAR Billion), 2016-2025
Figure 11: Saudi Arabian Defense Capital Expenditure (US$ Billion), 2016-2025
Figure 12: Saudi Arabian Per Capita Defense Expenditure (US$), 2016-2025
Figure 13: Saudi ArabianHomeland Security Expenditure (SAR Billion), 2016-2025
Figure 14: Saudi Arabian Homeland Security Expenditure (US$ billion), 2016-2025
Figure 15: Benchmarking with Key Markets - 2016-2020 vs. 2021-2025
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2020 and 2025
Figure 17: Benchmarking with Large Defense Spenders as % of GDP - 2020
Figure 18: Critical Infrastructure ProtectionMarket Size (US$ Million), 2020-2025
Figure 19: Land Based C4ISR Market Size (US$ Million), 2020-2025
Figure 20: Airborne Based C4ISR Market Size (US$ Million), 2020-2025
Figure 21: Top Saudi Arabian Defense Procurements in Terms of Their Supplier Relationships
Figure 22: Saudi Arabian Defense Import Trend, 2015-2019 (TIV values)
Figure 23: Saudi Arabian Defense Imports by Country (%), 2015-2019
Figure 24: Saudi Arabian Defense Imports by Weapon Category (%), 2015-2019
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
Figure 26: Saudi Arabia Budgeting Process
Figure 27: Saudi Arabia - Military Chain of Command
Figure 28: Key Challenges
Figure 29: Saudi Arabia Market Share Analysis, 2020-2025
Figure 30: BAE Systems - Revenue Trend Analysis (GBP Billion), 2015-2019
Figure 31: BAE Systems - Operating Profit Trend Analysis (GBPBillion), 2015-2019
Figure 32: BAE Systems - Net Profit Trend Analysis (GBP billion), 2015-2019
Figure 33: Airbus Group - Revenue Trend Analysis (EUR Billion), 2015-2019
Figure 34: Airbus Group - Operating Profit Trend Analysis (EUR Billion), 2015-2019
Figure 35: Airbus Group - Net Profit Trend Analysis (EUR Billion), 2015-2019
Figure 36: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2015-2019
Figure 37: Lockheed Martin - Operating Profit Trend Analysis (US$ Billion), 2015-2019
Figure 38: Lockheed Martin - Net Profit Trend Analysis (US$ Billion), 2015-2019
Figure 39: Thales - Revenue Trend Analysis (US$ Billion), 2015-2019
Figure 40: Thales - Operating Profit Trend Analysis (US$ Billion), 2015-2019
Figure 41: Thales- Net Profit Trend Analysis (US$ Billion), 2015-2019
Figure 42: Boeing - Revenue Trend Analysis (US$ Billion), 2015-2019
Figure 43: Boeing - Operating Profit Trend Analysis (US$ Billion), 2015-2019
Figure 44: Boeing - Net Profit Trend Analysis (US$ Billion), 2015-2019
Figure 45: Northrop Grumman - Revenue Trend Analysis (US$ Billion), 2015-2019
Figure 46: Northrop Grumman - Operating Profit Trend Analysis (US$ Billion), 2015-2019
Figure 47: Northrop Grumman - Net Profit Trend Analysis (US$ Billion), 2015-2019
Figure 48: Saudi Arabian GDP per Capita (US$), 2015-2025
Note: Product cover images may vary from those shown
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  • 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
Note: Product cover images may vary from those shown
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