STOCKHOLM — The world’s largest weapons-producing companies saw a 5.9% increase in revenue from arms sales and military services last year, driven by the wars in Ukraine and Gaza and rising national defense spending, the Stockholm International Peace Research Institute (SIPRI) said Monday.
SIPRI reported that the combined revenue of the 100 biggest arms makers grew to $679 billion in 2024, the highest level on record. The bulk of the rise came from firms in Europe and the United States, though most regions experienced increases except Asia and Oceania, which saw a small decline.
Thirty of the 39 U.S. companies in the top 100 — including Lockheed Martin, Northrop Grumman and General Dynamics — reported higher arms revenue. Their combined income rose 3.8% to $334 billion, but SIPRI noted ongoing delays and budget overruns in major U.S.-led programs, such as the F-35 fighter jet.
In Europe (excluding Russia), 23 of 26 companies increased arms revenue, lifting the region’s total by 13% to $151 billion amid demand tied to the war in Ukraine and concerns about Russia. Notable gains included the Czech Republic’s Czechoslovak Group, whose revenue surged 193% partly due to a government project to source artillery shells for Ukraine, and Ukraine’s JSC Ukrainian Defense Industry, which grew 41%.
European firms are expanding production capacity to meet demand, though SIPRI researcher Jade Guiberteau Ricard warned that sourcing materials could become a growing challenge, with supply-chain restructuring for critical minerals complicated by Chinese export restrictions.
The two Russian companies on the list, Rostec and United Shipbuilding Corporation, saw a combined 23% rise in arms revenue to $31.2 billion. SIPRI said domestic demand largely offset losses in exports despite sanctions and component shortages, although a skilled labor shortage remains an issue.
Arms revenue also rose in the Middle East. The three Israeli companies in the ranking recorded a 16% increase to $16.2 billion; SIPRI researcher Zubaida Karim said backlash over Israeli actions in Gaza “seems to have had little impact on interest in Israeli weapons,” with many countries continuing to place orders.
Asia and Oceania saw a 1.2% decline to $130 billion, led by a 10% fall in revenue among the eight Chinese companies in the index. SIPRI attributed that drop to multiple corruption allegations in Chinese arms procurement that delayed or canceled major contracts last year.
