A sturdy defense of a country can reinforce national power and control without even applying physical force. The mere display of power can pay substantial strategic interests, prevent possible aggression, and conserve harmony.
According to MarkNtel Advisors research report, “GCC Defense Market Analysis, 2021,” the market is likely to grow at a CAGR of around 2.12% in the forecast period of 2021-26 due to the existing geopolitical tensions among GCC countries enabling the armies to strengthen their military power, thereby leading to massive investments in the defense sector. Furthermore, the need to enhance the local defense manufacturing firms by GCC countries and their efforts are other crucial factors likely to create lucrative opportunities for the market in the coming years.
Impact of COVID-19
The outbreak of the COVID-19 pandemic has affected various economies & industries in countries due to the imposition of strict restrictions like lockdowns, factory shutdowns, and travel bans. Multiple companies are undergoing disruption in production and curbing demand for spare parts. Out of all, the GCC Defense Market was affected moderately. While the overall supply and production of necessary defense equipment might be slow, it is unlikely to affect the market in the coming years due to the massive budgets allocated for defense before the pandemic.
Ammunitions to Attain the Fastest Market growth
Based on Weapons & Ammunitions, the GCC Defense Market segments into Missiles & Air Defense Systems, Artillery systems & Mortar Systems, Infantry Weapons, and Ammunitions. Out of all, Ammunitions are likely to attain the fastest market growth in the forecast period. It owes to prominent factors like the uncertain nature of warfare, the growing number of drug trafficking & terrorist activities, the militarization of forces, and the modernization of armed forces. Furthermore, the mounting incidences of armed intranational and conflicts are fueling countries to enhance their military strengths through ammunition & equipment. Hence, it shall propel the demand of Ammunitions and lead toward massive segment growth in the forecast years.
Communication System to Attain the Largest Market Share
Based on the Maintenance, Repair, & Overhaul (MRO), the market segments into Vehicles, Weapons & Ammunitions, and Communication System. Out of all three, the Communication System segment is likely to attain the largest market share in the forecast years of 2021-26. The key factors driving the segment growth comprise the mounting security concerns and the acquisition of communication solutions. Besides, the rising IP-based data also drives the need for modern network security. Furthermore, governments are setting up suitable advanced defense satellites to avoid the possibility of cyber-attacks and build better communication platforms in the sector. Hence, based on these aspects, the segment shall attain the largest market share in the forecast years, states MarkNtel Advisors in their research report, “GCC Defense Market Analysis, 2021.”
Saudi Arabia to Dominate the Market with the Largest Share
The expenditure on the defense sector in Saudi Arabia is likely to increase in the forecast years due to Saudi Arabia's objectives to extend its armed forces, owing to the growing conflicts in the GCC region. In recent years the Saudi Arabian defense budget reached USD 67.6 billion and made Saudi Arabia the third-largest defense spender throughout the world. Moreover, to build its dominance in the region, Saudi Arabia is investing massively in the defense sector. Furthermore, the Defense expenditure of Saudi Arabia shall continue to remain highest among GCC nations in the forecast period prominently due to the involvement in military conflicts in the Middle East and African region.
The prominent factors that shall drive the GCC Defense Market toward lucrative growth are the sociopolitical need for GCC countries to prepare for battles with countries like China, South Korea, and India. It shall result in the large-scale procurement of modern resources, small-caliber ammunition, and multiple other warfare equipment. Furthermore, the soaring need for large infantry forces is also likely to play an essential part in promoting military modernization programs. All these factors altogether shall create incredible opportunities for the GCC Defense Market in the forecast years.
According to MarkNtel Advisors, the major leading players in the GCC Defense Market are Saudi Arabian Military Industries, Emirates Defence Industries Company, Advanced Electronics Company, Military Industries Corporation, Dahra Engineering & Security Services LLC, Lockheed Martin Corporation, The Boeing Company, Elbit Systems Ltd, Israel Aerospace Industries, Raytheon Company, Rheinmetall AG, Aselsan AS, Northrop Grumman Corporation, Thales SA, Honeywell International Inc., BAE Systems PLC, Rockwell Collins, L3 Technologies Inc., Airbus SE, Leonardo SpA.
Key Questions Answered in the Market Research Report:
1. What are the overall market statistics or market estimates (Market Overview, Market Size- By Value, Forecast Numbers, Market Segmentation, Market Shares) of the GCC Defense Market?
2. What are the country-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the GCC Defense Market?
4. Who are the key competitors, their key strengths and weaknesses, and how do they perform in GCC Defense Market based on the competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the GCC Defense Market study?