Market Size of Iran Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Iran Defence Market Analysis
Iran defense market is expected to grow with a CAGR of 4% over the forecast period.
Iran defense market has witnessed a significant thump during the covid-19 pandemic. Country's defense expenditure was in a downtrend over from 2018 but in 2020 a sudden cut was registered in comparison to 2018. Due to reduced military expenses, the market has witnessed a notable impact on the value bar. Although, the covid-19 restrictions have winded down and the country is like to regain its growth trajectory by the end of 2023.
Iran, officially known as the Islamic Republic of Iran, has been a prime opposition to the United States' presence in the Middle East and the latter's support to Israel. In an attempt to strengthen its deterrence against foreign attack and influence, the country has committed to becoming the dominant power in the turbulent and strategic Middle East region by adapting its military capabilities and doctrine to account for developments by the US and its allies. To achieve its goals, Iran continues to rely on its unconventional warfare elements and asymmetric capabilities intended to exploit the perceived weaknesses of a superior adversary, such as the US.
Moreover, the recent escalation of hostility between the US and the Iranian forces has led to the US threatening to impose stringent additional sanctions and may affect firms that are engaged in direct trade between the two countries. The reimposition of the sanctions has pushed the Iranian economy into recession, sparking unrest around the country.
Iran Defence Industry Segmentation
The Iran defense market is segmented by type and end-user. By type, the market is segmented by Infantry Weapons, Vehicles, Fighter Aircraft, Other Fixed Wing Aircraft, Helicopters, Submarines, Ships, and Missile Systems. By end-user, the market is segmented by airforce, navy, and military. For each segment, the market segment market sizing and forecast have been done on the basis of Value (USD million). The report focuses on the detailed outlook of the defense strategy of Iran and the current capabilities and ongoing modernization programs of the defense forces.
| Type | |
| Infantry Weapons | |
| Vehicles | |
| Fighter Aircraft | |
| Other Fixed Wing Aircraft | |
| Helicopters | |
| Submarines | |
| Ships | |
| Missile Systems |
| End-User | |
| Airforce | |
| Navy | |
| Military |
Iran Defense Market Size Summary
The defense industry in Iran is poised for growth, driven by its strategic focus on enhancing military capabilities to counter perceived threats, particularly from the United States and its allies. The market, which experienced a downturn due to reduced military spending and the impacts of the COVID-19 pandemic, is expected to regain its growth trajectory by the end of 2023. Iran's commitment to becoming a dominant power in the Middle East is reflected in its adaptation of military doctrines and the development of unconventional warfare strategies. The country's defense sector is characterized by a significant emphasis on missile and naval capabilities, with ongoing developments in destroyers, frigates, and a diverse missile arsenal, which are seen as crucial for national security and power projection.
The Iranian defense market is moderately consolidated, with major global players like BAE Systems, Dassault Aviation, General Dynamics, Thales Group, and Lockheed Martin maintaining a presence. These companies leverage their global footprint and robust supply chains to sustain market share, focusing on product development and the integration of new technologies. The naval segment, particularly the shipbuilding capabilities, is expected to remain prominent, with Iran investing in the construction of advanced vessels such as the Loghman destroyer and the Mowj class frigates. Additionally, Iran's missile program continues to be a central component of its defense strategy, with significant investments aimed at enhancing the precision and lethality of its missile systems, thereby maintaining a credible threat to regional adversaries.
Iran Defense Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porters 5 Force Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Infantry Weapons
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2.1.2 Vehicles
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2.1.3 Fighter Aircraft
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2.1.4 Other Fixed Wing Aircraft
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2.1.5 Helicopters
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2.1.6 Submarines
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2.1.7 Ships
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2.1.8 Missile Systems
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2.2 End-User
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2.2.1 Airforce
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2.2.2 Navy
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2.2.3 Military
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Iran Defense Market Size FAQs
What is the current Iran Defense Market size?
The Iran Defense Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Iran Defense Market?
Lockheed Martin, BAE Systems, Thales Group, Dassault Aviation and General Dynamics are the major companies operating in the Iran Defense Market.
