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Defence Sector in Iran Market Size, Share, Opportunities and Market Forecast to 2022

Iran is one of a few nations that is trying to achieve a totally self-sufficient armaments capability but still it depends on imports for most of its requirements. So, positive growth can be predicted for the Defence sector in Iran.The principal driving factor for Iran to push toward self-sufficiency is its fear of economic and technological isolation from a world.

Iran’s defencesector includes industries that are producing mini-submarines, small arms, missiles, multiple rocket launchers, vehicles, mortars, artillery, mines and ammunition and also providing aircraft servicing and manufacture. The main reason for the development and manufacture of advanced armaments in Iran is because ofthe absence of a well-developed industrial and research infrastructure and also lack of strong technical expertise.Hence Iran aims at overcoming this weakness by strengthening of Iran’s electronics industry which is the main pillar of the future defence industrial base.

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Iran’s economy deteriorated in the aftermath of revolution, collapsing oil prices and wars for the greater state control over resources and responsibility for domestic services. The situation has been aggravated by the rise in population. Internal conflicts in Iran between protectionist advocates and free trade proponents have further deteriorated the development in the field of technology and infrastructure by being a hurdle to the funds for investment. Significant funding is being provided to the Arms imports in Iran till date.

Iranhas the indigenous capacity to produce lower technology weaponry. However,Iran is still import-dependent on countries like Russia, for advanced technology systems and their maintenance.Many of its products are actually reverse engineered and are of much lower quality than the competition. about the current effectiveness of conventional Iran military strength.

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The Defence sector of Iran can be segmented into Vehicles, Fighter Aircraft, Infantry Weapons, Other Fixed Wing Aircraft, Submarines, Ships, Helicopters and Missile Systems.

There are many opportunities for the Global defence players in the Defence industry of Iran. Russia is the first to make use of that opportunity as it has lifted its weapons export ban on Iran. Russia is now going ahead with the sale of the S-300 Missile system to Iran. Companies belonging to other countries have a very good chance to capture market in the very promising Defence sector of Iran.

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