Global arms sales, benefitting from demand driven by the wars in Ukraine and Gaza and the confrontation with China, reached a record $679 billion in 2024, according to a report released on Dec. 1 by the Stockholm International Peace Research Institute. “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,” SIPRI wrote. “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. …
“In 2024 the combined arms revenues of U.S. arms companies in the Top 100 grew by 3.8% to reach $334 billion, with 30 out of the 39 U.S. companies in the ranking increasing their arms revenues. These included major arms producers such as Lockheed Martin, Northrop Grumman and General Dynamics,” the report said further.
“However, widespread delays and budget overruns continue to plague development and production in key U.S.-led programs such as the F-35 combat aircraft, the Columbia-class submarine and the Sentinel intercontinental ballistic missile (ICBM). Several of the U.S.A.’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.”
In Europe, 23 out of 26 arms companies in the top 100 saw increases in revenues mostly driven by the supply of weapons to Ukraine and the beginning of European rearmament. “The Czech company Czechoslovak Group recorded the sharpest percentage increase in arms revenues of any Top 100 company in 2024: by 193%, to reach $3.6 billion,” SIPRI reported. The Czechoslovak Group benefitted 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% to $3.0 billion. The four German companies in the Top 100 saw their combined arms revenues go up by 36% to $14.9 billion, boosted by increased demand for ground-based air defense systems, ammunition and armored vehicles due to the alleged threat from Russia.
Asia and Oceania saw a 1.2% drop in revenues, but this was entirely accounted for by the eight Chinese companies in the top 100 that dropped 10%. This drop was attributed to corruption investigations that resulted in cancellations of major contracts. In contrast, the five Japanese arms makers, and the four Korean companies in the top 100 saw substantial increases, of 40% and 31% respectively.
