Key Points
- Global arms sales reached a record $679 billion in 2024, a 5.9% increase. The wars in Ukraine and Gaza are the primary drivers of the soaring demand.
- U.S. and European defense companies led the growth, with European sales jumping 13%.
- Russian arms makers also saw revenues rise due to strong demand from their own military.
- China was the exception, with its arms sales falling due to internal corruption issues.
The world’s largest weapons manufacturers saw their revenues surge by 5.9% last year, hitting a record $679 billion amid global conflicts that fueled massive demand for arms and military services. A new report from the Stockholm International Peace Research Institute (SIPRI) released Monday shows that wars in Ukraine and Gaza, combined with rising military budgets worldwide, are driving the boom.
U.S. and European companies drove most of the increase. Thirty-nine American firms in the top 100, including giants like Lockheed Martin and Northrop Grumman, boosted their combined revenue by 3.8% to $334 billion. However, the report notes that major U.S. programs, such as the F-35 fighter jet, still face significant delays and budgetary problems.
European defense companies saw an even more dramatic spike. Their sales jumped 13% to $151 billion as nations ramped up spending in response to the war in Ukraine and the perceived threat from Russia. One Czech company’s revenue soared by an incredible 193%, largely thanks to its role in supplying artillery shells to Ukraine.
Despite sanctions, the two major Russian companies on the list also saw their revenues climb by 23%, as strong domestic demand offset any drop in exports. In the Middle East, three Israeli firms increased their sales by 16% to $16.2 billion, with international backlash over the war in Gaza having little effect on new orders.
The only region to see a decline was Asia, where sales dropped slightly. This was mainly due to a 10% fall in revenue for Chinese arms companies, as corruption allegations in the country’s procurement process delayed or canceled major contracts.
