The global arms industry achieved unprecedented revenue levels in 2024, with the world's top 100 weapons manufacturers recording $679 billion in sales, according to new research from the Stockholm International Peace Research Institute (SIPRI).
This represents a significant 5.9 percent increase compared to the previous year, highlighting how ongoing conflicts in Ukraine and Gaza continue to drive military spending worldwide.
European Demand Drives Growth
Researchers identified Europe as the primary engine behind this expansion, with regional tensions and security concerns prompting nations to bolster their military capabilities. Lorenzo Scarazzato, a researcher with SIPRI's Military Expenditure and Arms Production Programme, confirmed that "global arms revenues reached the highest level ever recorded by SIPRI as producers capitalised on high demand."
The analysis reveals that over the past decade, from 2015 to 2024, revenues for the top 100 arms manufacturers have surged by 26 percent. Fellow researcher Jade Guiberteau Ricard explained to AFP that the European increase stems directly from "the threat perception of Russia by European states" following the invasion of Ukraine.
European nations are not only supplying weapons to Ukraine but also working to replenish their own stockpiles while pursuing military modernization programs that promise to sustain demand for years to come.
American Dominance and Production Challenges
The United States maintains its position as the global leader in arms manufacturing, hosting 39 of the top 100 companies, including industry giants Lockheed Martin, RTX (formerly Raytheon Technologies), and Northrop Grumman.
American arms makers collectively generated $334 billion in revenue during 2024, accounting for nearly half of the global total and representing a 3.8 percent increase from the previous year.
However, the report highlights significant production challenges affecting several major US weapons programs. Budget overruns and delays continue to plague key projects, including the F-35 fighter jet and Columbia-class submarine, indicating that meeting the heightened demand presents operational difficulties.
Global Variations and Supply Chain Strains
European-based companies within the top 100 experienced even more dramatic growth, with aggregate revenues climbing 13 percent to $151 billion. The Czech company Czechoslovak Group saw the most remarkable individual performance, with revenues skyrocketing by 193 percent to $3.6 billion, largely due to its participation in the Czech Ammunition Initiative supplying artillery shells to Ukraine.
Despite this growth, European manufacturers face mounting supply chain complications. The report notes that companies like Airbus and France's Safran, which previously sourced half of their titanium from Russia, have been forced to find alternative suppliers since 2022.
Chinese export restrictions on critical minerals have further complicated matters, prompting companies including France's Thales and Germany's Rheinmetall to warn of increasing costs as they restructure their supply networks.
Meanwhile, Russian arms producers demonstrated resilience despite international sanctions. The two Russian companies in the top 100—Rostec and United Shipbuilding Corporation—saw combined revenues grow 23 percent to $31.2 billion, though the report notes they face labor shortages that could hinder their ability to sustain Russia's war production needs.
Regional Contrasts and Middle Eastern Performance
The Asia and Oceania region stood alone in experiencing a decline, with the 23 companies based there seeing combined revenues drop 1.2 percent to $130 billion. This decrease primarily resulted from challenges facing Chinese arms manufacturers, where corruption allegations led to postponed or canceled major contracts in 2024.
In contrast, Japanese and South Korean weapons manufacturers recorded revenue increases, partly driven by European demand for their products.
The Middle East maintained a strong presence in the global arms market, with nine companies in the top 100 generating combined revenues of $31 billion. Israeli arms companies proved particularly successful, with three firms accounting for more than half of this total as their combined revenues grew by 16 percent to $16.2 billion.
SIPRI researcher Zubaida Karim observed that "the growing backlash over Israel's actions in Gaza seems to have had little impact on interest in Israeli weapons," indicating that geopolitical controversies have not significantly affected demand for the country's military technology.
