Revenues from sales of weapons and military services by the 100 largest global arms-producing companies reached a record $679bn in 2024, according to new data released by the Stockholm International Peace Research Institute (SIPRI).
The Gaza and Ukraine wars, as well as global and regional geopolitical tensions and ever-higher military expenditures, increased revenues generated by the companies from sales of military goods and services to customers domestic and abroad by 5.9 percent compared to the year before, the organisation said in a report published on Monday.
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The bulk of the global rise was attributed to companies based in Europe and the United States, but there were year-on-year increases in all regions except for Asia and Oceania, where issues within the Chinese arms industry drove down the regional total.
Lockheed Martin, Northrop Grumman and General Dynamics led the pack in the US, where the combined arms revenues of arms companies in the top 100 grew by 3.8 percent in 2024 to reach $334bn, with 30 out of the 39 US companies in the ranking increasing their revenues.
However, SIPRI said widespread delays and budget overruns continue to plague key projects such as the F-35 fighter jet, the Columbia and Virginia-class submarines, and the Sentinel intercontinental ballistic missile.
Elon Musk’s SpaceX appeared in the list of top global military manufacturers for the first time, after its arms revenues more than doubled compared with 2023 to reach $1.8bn.
Excluding Russia, there were 26 arms companies in the top 100 based in Europe, and 23 of them recorded increases in revenues from sales of weapons and equipment. Their aggregate arms revenues grew by 13 percent to $151bn.
After boosting revenues by 193 percent to reach $3.6bn through making artillery shells for Ukraine, Czech company Czechoslovak Group recorded the sharpest percentage increase in arms revenues of any top 100 company in 2024.
As Ukraine faces a relentless Russian offensive in its eastern regions, the country’s JSC Ukrainian Defense Industry increased its arms revenues by 41 percent to $3bn.
European arms companies have been investing in new production capacity to fight off Russia, the SIPRI report said, but it cautioned that sourcing materials – particularly in the case of dependence on critical minerals – could pose a “growing challenge” as China also tightens export controls.
Rostec and United Shipbuilding Corporation are the only two Russian arms companies in the ranking, and they also increased their combined arms revenues by 23 percent to $31.2bn despite being hit by Western-led sanctions over the Ukraine war.
Last year, weapons makers in Asia and Oceania still registered $130bn in revenues after a 1.2 percent decline compared to 2023.
The regional drop was due to a combined 10 percent decline in arms revenues among the eight Chinese arms companies in the ranking, most prominently the 31 percent fall in the arms revenues of NORINCO, China’s primary producer of land systems.
“A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024,” said Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme. “This deepens uncertainty around the status of China’s military modernisation efforts and when new capabilities will materialise.”
