GCC Defense Market Size (2024 - 2029)

The GCC defense market is poised for significant growth, driven by the need for military modernization amid ongoing geopolitical tensions in the region. This expansion is characterized by investments in upgrading air, land, and sea platforms, as well as incorporating advanced technologies like artificial intelligence and autonomous systems. Despite challenges such as budget constraints and a shortage of skilled labor, opportunities abound for developing local defense manufacturing capabilities and forming international partnerships. These efforts are expected to enhance the market's scope and effectiveness, contributing to a robust increase in the region's defense market size over the forecast period.

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Market Size of GCC Defense Industry

GCC Defense Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 29.73 Billion
Market Size (2029) USD 50.19 Billion
CAGR (2024 - 2029) 11.04 %
Market Concentration Medium

Major Players

GCC Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

GCC Defense Market Analysis

The GCC Defense Market size is estimated at USD 29.73 billion in 2024, and is expected to reach USD 50.19 billion by 2029, growing at a CAGR of 11.04% during the forecast period (2024-2029).

The current geopolitical tensions among the GCC (Gulf Cooperation Council) countries have resulted in armies' need to focus on enhancing their military power. To do so, they are investing in modernizing their air, land, and sea platforms by replacing their aging military equipment with new-generation equipment and upgrading the technology onboard their existing equipment.

However, this modernization process comes with challenges, including budget constraints and a lack of skilled labor, which could slow the procurement and maintenance of new equipment. Despite these challenges, there are also several opportunities for growth in the defense market in the region. Governments in the GCC are increasingly emphasizing the development of local defense manufacturing capabilities, which could lead to partnerships with international players and the expansion of the region's portfolio of defense products.

Moreover, advancements in technology, such as artificial intelligence and autonomous systems, are creating new avenues for growth in the defense market. Adopting these technologies in defense equipment could improve efficiency, reduce costs, and enhance the overall effectiveness of military operations.

GCC Defense Industry Segmentation

The GCC defense market covers all aspects, including details about the procurement and modernization plans of the GCC armed forces.

The GCC defense market is segmented by armed forces, type, and geography. By armed forces, the market is segmented into army, navy, and air force. By type, the market is segmented into personnel training and protection, communication systems, vehicles, and weapons and ammunition. The report also offers the market size and forecasts for six countries across the region. For each segment, the market sizing and forecasts are provided based on value (USD).

By Armed Forces
Army
Navy
Air Force
By Type
Personnel Training and Protection
Training and Simulation
Protection Equipment
Communication Systems
Vehicles
Land-based Vehicles
Sea-based Vehicles
Air-based Vehicles
Weapons and Ammunition
Artillery and Mortar Systems
Infantry Weapons
Missiles and Missile Defense Systems
Ammunition
By Geography
Saudi Arabia
United Arab Emirates
Qatar
Kuwait
Bahrain
Oman
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GCC Defense Market Size Summary

The GCC defense market is poised for substantial growth, driven by the need to enhance military capabilities amid ongoing geopolitical tensions. Countries within the Gulf Cooperation Council are investing heavily in modernizing their air, land, and sea defense platforms, replacing outdated equipment with advanced, next-generation systems. This modernization effort is supported by a strategic focus on developing local defense manufacturing capabilities, which is expected to foster partnerships with international defense players and expand the region's defense product portfolio. Despite challenges such as budget constraints and a shortage of skilled labor, the integration of advanced technologies like artificial intelligence and autonomous systems is anticipated to create new growth opportunities, improving the efficiency and effectiveness of military operations.

Saudi Arabia, in particular, is making significant strides in bolstering its defense industry through substantial investments aimed at modernizing its military capabilities. The country's defense budget, aligned with its Vision 2030 initiative, emphasizes increasing indigenous manufacturing and diversifying the economy. This has led to strategic partnerships and procurement of advanced defense systems, including missile defense and surveillance equipment. The GCC defense market is semi-consolidated, with major players like Lockheed Martin, Boeing, and Airbus, alongside regional entities such as Saudi Arabian Military Industries and EDGE Group. The trend towards indigenous production is gaining momentum, with regional players increasing their market share through collaborations and joint ventures, further accelerating the growth of the defense sector in the region.

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GCC Defense Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Armed Forces

      1. 2.1.1 Army

      2. 2.1.2 Navy

      3. 2.1.3 Air Force

    2. 2.2 By Type

      1. 2.2.1 Personnel Training and Protection

        1. 2.2.1.1 Training and Simulation

        2. 2.2.1.2 Protection Equipment

      2. 2.2.2 Communication Systems

      3. 2.2.3 Vehicles

        1. 2.2.3.1 Land-based Vehicles

        2. 2.2.3.2 Sea-based Vehicles

        3. 2.2.3.3 Air-based Vehicles

      4. 2.2.4 Weapons and Ammunition

        1. 2.2.4.1 Artillery and Mortar Systems

        2. 2.2.4.2 Infantry Weapons

        3. 2.2.4.3 Missiles and Missile Defense Systems

        4. 2.2.4.4 Ammunition

    3. 2.3 By Geography

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Qatar

      4. 2.3.4 Kuwait

      5. 2.3.5 Bahrain

      6. 2.3.6 Oman

GCC Defense Market Size FAQs

The GCC Defense Market size is expected to reach USD 29.73 billion in 2024 and grow at a CAGR of 11.04% to reach USD 50.19 billion by 2029.

In 2024, the GCC Defense Market size is expected to reach USD 29.73 billion.

GCC Defense Market Report Snapshots

GCC Defence Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)