The world’s 100 largest arms manufacturers generated total revenue in 2024 that was 5.9 percent higher, reaching a record 679 billion dollars, according to a new report from the Stockholm International Peace Research Institute (SIPRI).
SIPRI links the revenue growth to increased demand caused by the wars in Ukraine and Gaza, as well as broader global and regional geopolitical tensions, along with the continued growth of military budgets.
The largest growth was recorded by companies from the United States (U.S.) and Europe. Arms manufacturers from nearly all regions of the world reported increased sales, with the exception of Asia and Oceania, where problems in China’s defense industry pulled revenues downward. SIPRI analysts attribute this decline to the cancellation and postponement of major arms contracts during 2024 due to corruption scandals in China.
Encouraged by rising revenues and new orders, many companies have begun expanding production lines, increasing capacity, acquiring competitors, or opening new subsidiaries.
U.S. companies in SIPRI’s top 100 ranking achieved a total of 334 billion dollars in revenue in 2024, an increase of 3.8 percent. Thirty of the 39 U.S. firms on the list increased weapons sales, including Lockheed Martin, Northrop Grumman, and General Dynamics. However, SIPRI notes that serious delays and cost overruns continue to hamper the development of several key programs, including the F-35 fighter, Columbia-class submarines, and the Sentinel intercontinental ballistic missile.
In Europe, 23 of the 26 ranked companies reported sales growth. Their combined revenue rose 13 percent to 151 billion dollars, driven by the war in Ukraine and perceived threats from Russia. The largest increase was recorded by the Czechoslovak Group, whose revenue in 2024 rose 193 percent, to 3.6 billion dollars, thanks to weapons orders for Ukraine.
The report notes that European defense companies are investing heavily in new production capacities to meet growing demand. However, problems with sourcing raw materials, particularly rare metals, could hinder European rearmament plans.
Despite sanctions, Russian companies Rostec and the United Shipbuilding Corporation also increased their total arms revenue by 23 percent, reaching 31.2 billion dollars. According to the report, domestic demand was strong enough to offset losses from declining arms exports.
“Besides sanctions, Russian firms are also facing a shortage of skilled labor, which could slow production and limit innovation,” said one SIPRI researcher. “Still, we must be cautious in our assessments, as Russia’s defense industry has proven more resilient during the war in Ukraine than expected.”
For the first time, nine arms manufacturers from the Middle East appeared in the ranking. Together, they generated 31 billion dollars in revenue, and total arms sales in the region increased by 14 percent.
Among the companies that increased sales were Israeli firms Elbit Systems, Israel Aerospace Industries, and Rafael, which collectively grew arms revenue by 16 percent, to 16.2 billion dollars. “The growing international opposition to Israeli attacks in Gaza seems to have had little impact on interest in Israeli weapons,” said another researcher. “Many countries continued to order Israeli arms throughout 2024.”, Forbes writes.
