Revenues from gross sales of weapons and army providers by the 100 largest international arms-producing firms reached a report $679bn in 2024, based on new information launched by the Stockholm Worldwide Peace Analysis Institute (SIPRI).
The Gaza and Ukraine wars, in addition to international and regional geopolitical tensions and ever-higher army expenditures, elevated revenues generated by the businesses from gross sales of army items and providers to prospects home and overseas by 5.9 p.c in comparison with the 12 months earlier than, the organisation mentioned in a report printed on Monday.
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The majority of the worldwide rise was attributed to firms based mostly in Europe and america, however there have been year-on-year will increase in all areas aside from Asia and Oceania, the place points inside the Chinese language arms trade drove down the regional whole.
Lockheed Martin, Northrop Grumman and Common Dynamics led the pack in the US, the place the mixed arms revenues of arms firms within the high 100 grew by 3.8 p.c in 2024 to achieve $334bn, with 30 out of the 39 US firms within the rating rising their revenues.
Nonetheless, SIPRI mentioned widespread delays and funds overruns proceed to plague key initiatives such because the F-35 fighter jet, the Columbia and Virginia-class submarines, and the Sentinel intercontinental ballistic missile.
Elon Musk’s SpaceX appeared within the record of high international army producers for the primary time, after its arms revenues greater than doubled in contrast with 2023 to achieve $1.8bn.
Excluding Russia, there have been 26 arms firms within the high 100 based mostly in Europe, and 23 of them recorded will increase in revenues from gross sales of weapons and gear. Their combination arms revenues grew by 13 p.c to $151bn.
After boosting revenues by 193 p.c to achieve $3.6bn via making artillery shells for Ukraine, Czech firm Czechoslovak Group recorded the sharpest share enhance in arms revenues of any high 100 firm in 2024.
As Ukraine faces a relentless Russian offensive in its japanese areas, the nation’s JSC Ukrainian Protection Trade elevated its arms revenues by 41 p.c to $3bn.
European arms firms have been investing in new manufacturing capability to struggle off Russia, the SIPRI report mentioned, however it cautioned that sourcing supplies – notably within the case of dependence on crucial minerals – might pose a “rising problem” as China also tightens export controls.
Rostec and United Shipbuilding Company are the one two Russian arms firms within the rating, and so they additionally elevated their mixed arms revenues by 23 p.c to $31.2bn regardless of being hit by Western-led sanctions over the Ukraine battle.
Final 12 months, weapons makers in Asia and Oceania nonetheless registered $130bn in revenues after a 1.2 p.c decline in comparison with 2023.
The regional drop was attributable to a mixed 10 p.c decline in arms revenues among the many eight Chinese language arms firms within the rating, most prominently the 31 p.c fall within the arms revenues of NORINCO, China’s main producer of land programs.
“A bunch of corruption allegations in Chinese language arms procurement led to main arms contracts being postponed or cancelled in 2024,” mentioned Nan Tian, Director of the SIPRI Navy Expenditure and Arms Manufacturing Programme. “This deepens uncertainty across the standing of China’s army modernisation efforts and when new capabilities will materialise.”
However Japanese and South Korean arms producers’ gross sales surged on the again of sturdy demand from European in addition to home prospects amid simmering tensions over Taiwan and North Korea.
5 Japanese firms within the rating elevated their mixed arms revenues by 40 p.c to $13.3bn, whereas 4 South Korean producers noticed a 31 p.c bounce to $14.1bn in income. South Korea’s largest arms firm, Hanwha Group, recorded a 42 p.c surge in 2024, with greater than half coming from arms exports.
Israel reaps earnings of Gaza genocide
For the primary time, 9 of the highest 100 arms firms have been based mostly within the Center East, based on SIPRI. The 9 firms racked up a mixed $31bn in income in 2024, displaying a regional enhance of 14 p.c.
Because the United Arab Emirates continues to face worldwide allegations of arming the devastating war in Sudan, the institute famous its regional determine excludes Emirati-based EDGE Group attributable to a scarcity of income information for 2023. The UAE rejects the accusations.
The three Israeli arms firms within the rating elevated their mixed arms revenues by 16 p.c to $16.2bn amid the ongoing genocidal war on Gaza, which has killed practically 70,000 Palestinians and destroyed many of the besieged enclave.
Elbit Methods pocketed $6.28bn in earnings, adopted by Israel Aerospace Industries with $5.19bn and Rafael Superior Protection Methods with $4.7bn.
SIPRI mentioned there was a world surge in curiosity in Israeli unmanned aerial autos and counter-drone programs. Rafael’s surge was tied to Iran, as demand for the corporate’s air defence programs rose to “unprecedented ranges” after Iran’s large-scale retaliatory strikes against Israel in April and October 2024 that used ballistic missiles and drones.
5 Turkish firms have been within the high 100 – additionally a report. Their mixed arms revenues amounted to $10.1bn, displaying an 11 p.c enhance.
Baykar, which makes, amongst different issues, superior drones most not too long ago offered to Ukraine, noticed 95 p.c of its $1.9bn in arms income in 2024 come from exports to different international locations.
Navy firms from the UK, France, Germany, Italy, India, Taiwan, Norway, Canada, Spain, Poland and Indonesia have been within the rating as properly.
