The world’s largest arms manufacturers logged another year of growth in 2024, driven largely by the ongoing wars in Ukraine and Gaza and a broader rise in military spending, according to new data released by the Stockholm International Peace Research Institute (SIPRI).
According to news agency Associated Press, SIPRI’s latest assessment shows that revenues for the top 100 arms-producing companies rose 5.9 per cent to USD 679 billion, the highest figure recorded since the institute began tracking the sector.
Most of the growth came from firms in Europe and the United States, reflecting higher defence spending and expanded procurement cycles. Asia and Oceania were the only regions to see a slight decline, largely because delays in China’s arms industry dragged the numbers down.
US and Europe power the surge
Thirty of the 39 US firms on the list, including major suppliers such as Northrop Grumman, Lockheed Martin, and General Dynamics, reported higher arms revenue. Together, American companies generated USD 334 billion, up 3.8 per cent from the previous year.
Despite the rise, SIPRI flagged persistent structural issues in the US defence industry, pointing to “widespread delays and budget overruns” in large programmes such as the F-35 fighter jet.
In Europe, 23 of 26 companies (excluding Russia) recorded higher sales, with total revenue climbing 13 per cent to USD 151 billion. The increases reflect not just higher military budgets but also urgent wartime procurement linked to the conflict in Ukraine.
The Czech Republic’s Czechoslovak Group posted one of the most dramatic jumps, a 193% surge, boosted in part by a government initiative to secure artillery shells for Kyiv. Ukraine’s state-owned JSC Ukrainian Defense Industry also saw a strong year with a 41 per cent rise in revenue.
However, SIPRI researcher Jade Guiberteau Ricard cautioned that supply chains may face pressure, noting that sourcing critical minerals could become increasingly difficult as countries rework procurement networks and Chinese export controls tighten.
Russian revenues rise despite sanctions
The two Russian firms listed, Rostec and United Shipbuilding Corporation, recorded a combined 23 per cent increase to USD 31.2 billion, despite sanctions and shortages of key components. The surge, SIPRI noted, was fuelled almost entirely by domestic demand, even as arms exports continued to fall. A shortage of skilled labour remains an obstacle for Russia’s defence sector.
Middle East and Israel also see gains
Defence companies in the Middle East posted higher sales, and Israel’s three companies collectively recorded a 16 per cent rise to USD 16.2 billion.
SIPRI researcher Zubaida Karim said backlash against Israel’s actions in Gaza “seems to have had little impact on interest in Israeli weapons,” with several countries placing fresh orders in 2024.
China slowdown pulls down Asia’s numbers
Across Asia and Oceania, revenues slipped 1.2 per cent to USD 130 billion, largely because of a 10 per cent drop among China’s top eight firms. Multiple corruption allegations within China’s defence procurement system led to postponed or cancelled contracts over the past year, SIPRI said.