Revenues from arms sales and military services by the world’s 100 largest arms-producing companies climbed to a record $679 billion in 2024, a 5.9 per cent increase from the previous year, according to new figures released by the Stockholm International Peace Research Institute (SIPRI). The rise marks the highest level ever recorded and reflects surging global demand fuelled by active conflicts, rising geopolitical tensions and an upswing in military budgets across key regions.
SIPRI reported that all five of the world’s largest arms companies expanded their arms revenues for the first time since 2018. Europe and the United States accounted for the bulk of the global increase, although every region except Asia and Oceania recorded year-on-year growth. Across the industry, companies accelerated expansion efforts, adding production lines, enlarging factories, establishing new subsidiaries or pursuing acquisitions to capture heightened demand.
Researcher Lorenzo Scarazzato said producers had “capitalized on high demand” but noted that many still face challenges that could reshape delivery schedules and cost structures. These pressures were most visible in the United States, where arms revenues rose by 3.8 per cent to $334 billion, with 30 of 39 American firms in the Top 100 reporting increases. Lockheed Martin, Northrop Grumman and General Dynamics were among those posting gains. Yet major US defence programmes continued to be beleaguered by delays and cost overruns, including the F-35 fighter jet, the Columbia-class submarine and the Sentinel intercontinental ballistic missile. Researcher Xiao Liang warned that the persistent overruns could complicate US military planning as officials attempt to rein in excessive spending.
Europe saw some of the sharpest increases, with 23 of 26 companies outside Russia reporting higher arms revenues. The region’s total grew by 13 per cent to $151 billion, driven largely by the war in Ukraine and fears of Russian aggression. The Czech firm Czechoslovak Group posted a staggering 193 per cent rise to $3.6 billion, attributing much of its surge to Ukrainian orders, while Ukraine’s own state-owned JSC Ukrainian Defense Industry increased its revenues by 41 per cent to $3.0 billion. European firms continued to invest heavily in new production capacity, though researchers warned that access to critical minerals could disrupt long-term rearmament plans. Airbus and Safran, once reliant on Russian titanium, were among the firms forced to restructure supply chains, while companies such as Thales and Rheinmetall cautioned of rising costs linked to tightening Chinese export restrictions.
Russian companies, despite facing sanctions and shortages of skilled labour and components, raised their combined revenues by 23 per cent to $31.2 billion. Domestic procurement more than compensated for declines in export sales. Senior researcher Diego Lopes da Silva noted that while labour shortages could slow innovation, Russia’s defence sector has demonstrated unexpected resilience throughout the war.
Asia and Oceania was the only region to record a decline, dipping 1.2 per cent to $130 billion. The fall stemmed primarily from a 10 per cent contraction in revenues from Chinese firms, including a steep 31 per cent drop for NORINCO. SIPRI attributed this to corruption allegations in Chinese defence procurement that forced postponements and cancellations of major contracts. In contrast, Japanese and South Korean companies experienced strong growth due to increased European and domestic demand. Japanese firms grew 40 per cent to $13.3 billion, while South Korean producers rose 31 per cent to $14.1 billion, led by Hanwha Group’s 42 per cent expansion.
The Middle East reached its highest-ever representation in the Top 100, with nine firms generating a combined $31.0 billion. The three Israeli companies increased revenues by 16 per cent to $16.2 billion despite global backlash over Israel’s actions in Gaza. Turkish firms continued their ascent, with five companies reaching a combined $10.1 billion, while the UAE’s EDGE Group reported $4.7 billion.
Elsewhere, India’s three Top 100 companies expanded revenues by 8.2 per cent to $7.5 billion, supported by domestic procurement. Germany’s four firms grew a combined 36 per cent to $14.9 billion amid demand for air defence, armoured vehicles and ammunition. The United States’ SpaceX entered the Top 100 for the first time after doubling its arms-linked revenue to $1.8 billion. Indonesia also made its debut with DEFEND ID, which reported a 39 per cent increase to $1.1 billion as consolidation and homegrown procurement boosted production.
