Saudi Arabia Aerospace and Defense Market Forecast 2025: Opportunities and Growth Prospects

Saudi Arabia's aerospace and defense sector is poised for significant growth as the nation advances its Vision 2030 initiative, aiming to diversify its economy and bolster domestic defense capabilities. This strategic vision seeks to localize 50% of military procurement by 2030, reducing reliance on foreign suppliers and fostering indigenous industries.

Current Market Landscape

As of 2023, the Saudi Arabian aerospace and defense sector recorded revenues of $7.81 billion, reflecting a compound annual growth rate (CAGR) of 0.1% from 2018 to 2023.

The defense segment remains a significant component, with the nation's defense acquisition budget estimated at $19.9 billion in 2024 and projected to reach $20 billion in 2025, indicating a robust CAGR of 7.6% over the forecast period.

Vision 2030 and Localization Efforts

Central to Vision 2030 is the goal to localize half of the military procurement by 2030. This ambitious target is driving investments in domestic manufacturing, maintenance, and repair operations across various defense platforms, including aviation and naval systems. The initiative not only aims to enhance national security but also to stimulate economic growth by creating jobs and developing a self-sustaining defense industry.

Strategic Developments and Investments

In alignment with these objectives, the Saudi Authority for Industrial Cities and Technology Zones (MODON), in partnership with the General Authority of Civil Aviation (GACA) and the Ministry of Industry, has launched a dedicated aviation hub in Jeddah. This industrial zone is designed to bolster manufacturing and strengthen supply chains within the aerospace sector, positioning Saudi Arabia as a regional leader in aerospace capabilities.

Market Projections

Forecasts indicate that the Saudi Arabia Aerospace and Defense Market size is estimated at $17.31 billion in 2025 and is expected to reach $20.41 billion by 2030, at a CAGR of 3.35% during the forecast period (2025-2030).

This growth is attributed to the nation's strategic location, regional security dynamics, and a concerted focus on technological advancements within the defense sector.

Technological Advancements and Collaborations

The Kingdom is actively investing in cutting-edge technologies such as artificial intelligence, unmanned aerial vehicles (UAVs), and advanced radar systems to modernize its defense apparatus. Collaborations with global defense contractors are facilitating technology transfer and skill development, essential for building a robust domestic defense industry.

Challenges and Opportunities

While the localization drive presents significant opportunities, challenges such as developing a skilled workforce, establishing comprehensive supply chains, and ensuring technology transfer remain. However, with sustained government support and strategic partnerships, Saudi Arabia is well-positioned to overcome these hurdles and achieve its Vision 2030 objectives.

For More Info https://www.gmiresearch.com/report/saudi-arabia-aerospace-and-defense-market/

Conclusion

Saudi Arabia Aerospace and Defense Market is on a trajectory of substantial growth, underpinned by strategic initiatives aimed at economic diversification and self-reliance in defense capabilities. The successful implementation of Vision 2030 will not only enhance national security but also transform the Kingdom into a hub for aerospace and defense industries in the region.