Global Arms Industry Reaches Record $679 Billion in Sales Amid Rising Conflicts and Geopolitical Tensions

Stockholm:

The global arms industry reached unprecedented heights in 2024, with the combined revenues of the world's 100 largest weapons manufacturers climbing by 5.9 percent to a record $679 billion, according to new data published by the Stockholm International Peace Research Institute (SIPRI).

This significant growth has been primarily driven by ongoing conflicts in Ukraine and Gaza, escalating geopolitical tensions across regions, and consistently increasing military expenditure worldwide.

Three Indian defense companies featured in SIPRI's top 100 list collectively increased their arms revenues by 8.2 percent to $7.5 billion, largely propelled by domestic procurement orders. These companies include Hindustan Aeronautics (ranked 44th), Bharat Electronics (58th), and Mazagon Dock Shipbuilders (91st).

In a notable development, 2024 marked the first year since 2018 that all five leading arms companies simultaneously registered growth in their weapons revenues. This elite group comprises Lockheed Martin Corporation, RTX, Northrop Grumman Corporation, BAE Systems, and General Dynamics Corporation, with American companies occupying four of the five top positions.

While companies from Europe and the United States accounted for the majority of the global increase, year-on-year growth was observed across nearly all world regions represented in the top 100. The only exception was the Asia and Oceania region, where challenges within China's defense industrial sector contributed to a regional decline.

U.S. arms manufacturers in the top 100 collectively grew their weapons revenues by 3.8 percent to $334 billion, with 30 out of 39 American companies reporting increased arms sales. Despite this impressive performance, SIPRI noted that major U.S.-led weapons programs continue to face widespread delays and budget overruns, affecting key projects like the F-35 combat aircraft, Columbia-class submarine, and Sentinel intercontinental ballistic missile development.

Lorenzo Scarazzato, Researcher with SIPRI's Military Expenditure and Arms Production Programme, commented: "Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalized on high demand. Although companies have been building their production capacity, they still face a range of challenges that could affect costs and delivery schedules."

The boom in revenues and new orders has prompted numerous arms manufacturers to expand production facilities, establish new subsidiaries, and pursue strategic acquisitions to meet growing demand.

European arms companies (excluding Russia) demonstrated remarkable growth, with 23 of 26 firms in the top 100 reporting increased revenues. Their combined arms sales grew by 13 percent to $151 billion, largely in response to the war in Ukraine and perceived threats from Russia.

Despite international sanctions and component shortages, the two Russian arms companies in the list—Rostec and United Shipbuilding Corporation—increased their combined revenues by 23 percent to $31.2 billion. Strong domestic demand more than compensated for revenue losses from declining arms exports.

The Middle East achieved unprecedented representation in SIPRI's ranking, with nine companies featuring in the top 100 for the first time, generating combined revenues of $31.0 billion—a 14 percent increase. Israeli defense firms were particularly successful, with three companies collectively growing their arms revenues by 16 percent to $16.2 billion.

American aerospace company SpaceX made its debut on the SIPRI top 100 list after more than doubling its arms revenues compared to 2023, reaching $1.8 billion.

This data release represents the first of three major SIPRI publications leading up to its flagship SIPRI Yearbook scheduled for mid-2026, which will be preceded by reports on international arms transfers and global military expenditure for 2025.