The world’s largest weapons manufacturers saw their revenues climb to unprecedented heights last year, driven by ongoing wars and rising global military expenditure. According to a report released Monday by the Stockholm International Peace Research Institute (SIPRI), the top 100 arms producers recorded a 5.9% year-on-year revenue increase, reaching $679 billion in 2024 — the highest figure ever observed.
US and Europe Lead Growth
Defense companies based in the United States and Europe accounted for most of the industry’s revenue surge.
- United States:
30 of the 39 US companies in the top 100 — including Lockheed Martin, Northrop Grumman and General Dynamics — reported higher earnings. Combined US revenue rose 3.8% to $334 billion.
However, SIPRI noted ongoing challenges: major US-led programs like the F-35 fighter jet continue to face delays and budget overruns. - Europe:
23 of the 26 European companies listed (excluding Russia) saw arms revenue rise as government defense spending climbed sharply amid the war in Ukraine. Their total revenue jumped 13% to $151 billion.
Notable increases included:
- Czech Republic’s Czechoslovak Group — revenue up 193%, partly due to a government project supplying artillery shells to Ukraine
- Ukraine’s JSC Ukrainian Defense Industry — revenue up 41%
Despite investment in new production capacity, SIPRI warned that material sourcing and supply-chain restructuring — particularly concerning critical minerals amid Chinese export restrictions — may pose challenges for Europe going forward.
Russia, Middle East Also Record Revenue Growth
The two Russian companies listed — Rostec and United Shipbuilding Corporation — saw combined revenue rise 23% to $31.2 billion, with domestic demand compensating for declining exports. However, component shortages and a lack of skilled labor remain major hurdles.
In the Middle East, arms revenue also increased. The three Israeli companies on the list saw their total revenue grow 16% to $16.2 billion. SIPRI researcher Zubaida Karim noted that global backlash over Israel’s actions in Gaza appears to have had “little impact on interest in Israeli weapons”, with multiple nations continuing to place new orders.
Asia and Oceania See Decline
Unlike other regions, Asia and Oceania experienced a 1.2% drop in revenue to $130 billion — largely due to declining sales in China.
The report highlights:
- A 10% revenue fall among the eight Chinese companies listed
- Procurement corruption allegations that resulted in delayed or cancelled defense contracts
These issues contributed to the region’s only downturn.
A World Increasingly Defined by Conflict
As geopolitical tensions persist — from the wars in Ukraine and Gaza to growing military posturing worldwide — SIPRI’s latest data underscores how global instability continues to fuel the demand for arms and military technology.