Saudi Arabia Defence Market Size & Share 2025: A Growing Power in the Middle East

Saudi Arabia’s defence market is one of the largest in the world, driven by high military spending, modernization efforts, and regional security challenges. By 2025, the Kingdom’s defence industry is expected to expand further, strengthening its position as a leading military power in the Middle East. This article explores the size and share of Saudi Arabia defence market, key growth factors, and future trends shaping the industry.

1. Saudi Arabia’s Defence Market Size in 2025

Saudi Arabia has consistently ranked among the top global defence spenders, and this trend is expected to continue in 2025. The Kingdom allocates a significant portion of its national budget to military and security expenditures, with an estimated annual defence budget exceeding $75 billion. This places Saudi Arabia among the top five defence spenders worldwide, alongside countries like the United States, China, and Russia.

The growing size of the market is fueled by increasing investments in advanced military technology, the expansion of local defence manufacturing, and the Kingdom’s ongoing involvement in regional security matters. With a strong emphasis on self-reliance under the Vision 2030 initiative, the domestic defence sector is also expected to capture a larger share of the total market size.

2. Market Share and Key Segments

The Saudi defence market is divided into several key segments, each playing a vital role in national security and military operations. In 2025, the market share distribution is expected to be as follows:

• Aerospace & Air Defence (40%) – The largest segment, driven by heavy investments in fighter jets, surveillance aircraft, and missile defense systems such as THAAD and Patriot missiles.
• Land Systems (25%) – This includes armored vehicles, tanks, and military transport systems. Saudi Arabia is expanding its land forces to enhance border security.
• Naval Forces (15%) – The Kingdom is investing in warships, submarines, and maritime defense systems to secure its coastline and counter potential threats in the Red Sea and Persian Gulf.
• Cybersecurity & Intelligence (10%) – With increasing digital threats, Saudi Arabia is prioritizing cybersecurity to protect military data and communication networks.
• Unmanned Systems & AI (10%) – The use of drones, artificial intelligence (AI), and robotics is growing rapidly, providing strategic advantages in surveillance and combat.

These segments reflect Saudi Arabia’s shift toward modern warfare, where technology-driven solutions are becoming increasingly important.

3. Growth Drivers in the Defence Market

Several key factors are driving the expansion of Saudi Arabia’s defence market in 2025:

• Geopolitical Tensions – Ongoing conflicts and security threats from regional adversaries, such as Iran and Yemen, are pushing Saudi Arabia to strengthen its military forces.
• Vision 2030 & Local Defence Industry – The government aims to have 50% of military spending directed toward local production by 2030. Companies like Saudi Arabian Military Industries (SAMI) are playing a key role in increasing domestic manufacturing.
• Technological Advancements – Saudi Arabia is investing in next-generation weapons, AI-powered military solutions, and cybersecurity to enhance its defence capabilities.
• Strategic Partnerships – The Kingdom continues to collaborate with defence contractors from the U.S., Europe, and China, allowing access to advanced technologies and expertise.

4. Future Outlook & Opportunities

By 2025, Saudi Arabia’s defence market will continue expanding, offering opportunities for international defence firms and local manufacturers. The push toward self-reliance will see an increase in joint ventures, technology transfers, and investments in military R&D.

The demand for smart weapons, cybersecurity solutions, and autonomous military systems is expected to rise, making Saudi Arabia a lucrative market for global defence suppliers. Additionally, the country’s growing role in regional security and peacekeeping missions will further increase defence expenditures.

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Conclusion

Saudi Arabia’s defence market in 2025 will be defined by strong growth, rising investments in modern military technologies, and an increasing share of domestic defence production. With a defence budget exceeding $75 billion, the Kingdom will remain one of the world’s top military spenders, ensuring regional stability and strengthening its national security. The shift toward self-sufficiency, AI-driven defence systems, and cybersecurity will be key themes shaping the market’s future.

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