Revenues from sales of arms and military services by the 100 largest arms-producing companies rose by 5.9 per cent in 2024, reaching a record $679 billion, according to new data released today by the Stockholm International Peace Research Institute (SIPRI), available at http://www.sipri.org.

Global arms revenues rose sharply in 2024, as demand was boosted by the wars in Ukraine and Gaza, global and regional geopolitical tensions, and ever-higher military expenditure. For the first time since 2018, all of the five largest arms companies increased their arms revenues.

Although the bulk of the global rise was due to companies based in Europe and the United States, there were year-on-year increases in all of the world regions featured in the Top 100. The only exception was Asia and Oceania, where issues within the Chinese arms industry drove down the regional total.

The surge in revenues and new orders prompted many arms companies to expand production lines, enlarge facilities, establish new subsidiaries or conduct acquisitions.

‘Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalized on high demand,’ said Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘Although companies have been building their production capacity, they still face a range of challenges that could affect costs and delivery schedules.’

US arms revenues grow but delays and cost overruns persist
In 2024 the combined arms revenues of US arms companies in the Top 100 grew by 3.8 per cent to reach $334 billion, with 30 out of the 39 US companies in the ranking increasing their arms revenues. These included major arms producers such as Lockheed Martin, Northrop Grumman and General Dynamics.

However, widespread delays and budget overruns continue to plague development and production in key US-led programmes such as the F-35 combat aircraft, the Columbia-class submarine and the Sentinel intercontinental ballistic missile (ICBM). Several of the USA’s largest arms producers are affected by overruns, raising uncertainty about when major new weapon systems and upgrades to existing ones can be delivered and deployed.

‘The delays and rising costs will inevitably impact US military planning and military spending,’ said Xiao Liang, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘This could have knock-on effects on the US government’s efforts to cut excessive military spending and improve budget efficiency.’

Rearmament under way in Europe, but threat of supply chain problems grows
Of the 26 arms companies in the Top 100 based in Europe (excluding Russia), 23 recorded increasing arms revenues. Their aggregate arms revenues grew by 13 per cent to $151 billion. This increase was tied to demand stemming from the war in Ukraine and the perceived threat from Russia. The Czech company Czechoslovak Group recorded the sharpest percentage increase in arms revenues of any Top 100 company in 2024: by 193 per cent, to reach $3.6 billion. The company attributes the majority of its revenue to Ukraine. Czechoslovak Group benefited from the Czech Ammunition Initiative, a government-led project to source artillery shells for Ukraine. Ukraine’s own JSC Ukrainian Defense Industry increased its arms revenues by 41 per cent to $3.0 billion.

‘European arms companies are investing in new production capacity to meet the rising demand,’ said Jade Guiberteau Ricard, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘But sourcing materials could pose a growing challenge. In particular, dependence on critical minerals is likely to complicate European rearmament plans.’

As an example of the risks of such dependence, the trans-European company Airbus and France’s Safran met half of their pre-2022 titanium needs with Russian imports and have had to find new suppliers. Furthermore, in light of Chinese export restrictions on critical minerals, companies including France’s Thales and Germany’s Rheinmetall warned in 2024 of the potential high costs of restructuring their supply chains.

The full SIPRI Report