Saudi Arabia C4ISR Market Size (2024 - 2029)

Saudi Arabia C4ISR Market Analysis

The Saudi Arabia C4ISR Market size is estimated at USD 795.05 million in 2024, and is expected to reach USD 867.08 million by 2032, growing at a CAGR of 1.09% during the forecast period (2024-2032).

Over the past decade, Saudi Arabia has consistently ranked in the top 10 for the total amount of defense spending and the amount spent on importing armaments. However, even before the outbreak of COVID-19, Saudi Arabia began reducing its defense expenditures. This can be attributed to various factors like the decrease in oil revenues and the government's increased focus on non-military sectors such as healthcare and social development. The country is expected to further reduce its defense expenditure in the years to come. Saudi Arabia plans to spend USD 55.6 billion on its military in 2021, an approximately 3% decrease from the 2020 defense budget of USD 57.5 billion, according to the SIPRI report. The reduction in defense spending is expected to challenge the growth of the C4ISR market during the forecast period.

Nevertheless, the defense spending of the country is one of the highest in the world, which enables the country to focus on its objective of military capability modernization. Factors like growing threats from adversaries, increasing territorial tensions, and growing risk from asymmetric warfare in the region are propelling the military to enhance its battlefield data-sharing capabilities.

There is a growing emphasis on increasing investments in the integration of advanced technologies like machine learning and artificial intelligence into C4ISR solutions to enhance the efficiency and situational awareness of military personnel. Saudi Arabia made data and artificial intelligence key focal points of its Saudi Vision 2030, which is expected to propel market growth in the coming years.

Saudi Arabia C4ISR Industry Segmentation

C4ISR (Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance) refers to systems, procedures, and techniques that are used to collect and disseminate battlefield information. The Saudi Arabian C4ISR market is segmented based on the platform. By platform, the market is segmented into air, land, sea, and space. The market size and forecasts have been provided in value (USD million).