The Stockholm International Peace Research Institute (SIPRI) released its latest data on Monday, December 1st, revealing that the total revenue of the world’s top 100 arms and military services producers reached $679 billion in 2024, marking a 5.9% annual increase and setting a record high since SIPRI began tracking.
Key factors driving this growth include the conflict in Ukraine, the Gaza conflict, escalating global and regional tensions, and the continuing rise in military expenditure worldwide.
However, the data highlights significant disparities in the performance of major regions in the arms market: while arms industry revenues sharply increased in the United States and Europe, Asia and Oceania were the only regions to see an overall decline in revenue. The region experienced a 1.2% decrease in total revenue to $130 billion, primarily due to a 10% decline in combined revenue from China’s arms industry.
SIPRI’s report indicated that the overall decline in revenue in Asia and Oceania was attributed to the performance of eight Chinese arms companies on the list.
“In 2024, the Chinese arms industry faced a series of corruption allegations, leading to the postponement or cancellation of several major arms contracts,” noted Nan Tian, Director of SIPRI’s Arms and Military Expenditure Program. “This further deepened doubts about China’s military modernization process and when new capabilities could be realized.”
The most notable example of internal turmoil was the significant decrease in arms revenue for China’s primary land systems manufacturer, Norinco, which plummeted by 31%.
In stark contrast to the upheaval in China’s arms industry, the arms revenues of democratic allies in the Asia-Pacific region surged.
Benefiting from strong demand in Europe and domestically, the combined arms revenue of five Japanese companies rose by 40% to $13.3 billion. Four South Korean manufacturers saw a 31% revenue increase to $14.1 billion, with South Korea’s largest arms company, Hanwha Group, growing by 42%, with over half of its revenue coming from arms exports.
The combined arms revenue of three Indian companies grew by 8.2% to reach $7.5 billion, driven by domestic orders. Indonesia’s DEFEND ID entered the top 100 for the first time, with its arms revenue growing by 39% to $1.1 billion, facilitated by industry consolidation and increased domestic procurement.
European (excluding Russia) arms industry revenues saw a significant increase, reflecting support for Ukraine and a clear response to the threat posed by Russia.
Out of the 26 European companies, 23 experienced revenue growth, with total revenue skyrocketing by 13% to $151 billion. Czechoslovak Group from the Czech Republic recorded a 193% growth with revenue reaching $3.6 billion, mainly attributed to sales to Ukraine.
The combined arms revenue of four German companies increased by 36% to $14.9 billion, driven by heightened concerns over Russian threats and increased demand for land-based air defense systems, ammunition, and armored vehicles.
Ukraine’s JSC Ukrainian Defense Industry also saw a 41% increase in revenue.
“European arms companies are investing in new production capacity to meet the rising demand,” noted SIPRI researcher Jade Guiberteau Ricard, “but procuring raw materials may become an increasingly challenging task, especially due to dependencies on critical minerals.”
Researchers pointed out that given China’s export restrictions on critical minerals, European companies may need to reorganize supply chains at high costs.
The United States remains the dominant force in the global arms market, with 30 out of 39 listed companies reporting revenue growth, including major producers like Lockheed Martin, Northrop Grumman, and General Dynamics. The combined revenue grew by 3.8% to reach $334 billion.
However, SIPRI cautioned that key U.S.-led projects such as the F-35 fighter jet, Columbia-class submarines, and Sentinel intercontinental ballistic missiles (ICBM) continue to face delays and budget overruns in research and production.
SIPRI believes that the budget overruns cast uncertainties over the delivery and deployment of significant new weapon systems, potentially affecting U.S. military planning and spending.
Under international sanctions, two state-owned Russian companies, Rostec and United Shipbuilding Corporation, saw a 23% increase in combined revenue to $31.2 billion, mainly due to domestic demands offsetting revenue losses from declining arms exports.
SIPRI noted that Russian arms companies still face challenges due to a “shortage of skilled labor,” which could limit their production and innovation capabilities.
Among the top 100 arms companies, nine are headquartered in the Middle East, marking the first time in history. These companies’ combined arms revenue reached $31 billion. The combined arms revenue of three Israeli arms companies on the list increased by 16% to $16.2 billion.
Researchers observed that despite international controversy surrounding the Gaza conflict, interest in Israeli weapons seemed largely unaffected, as many countries continued to place new orders in 2024.
SpaceX, an American company, made its debut in SIPRI’s top 100 arms vendors list, with its arms revenue more than doubling from 2023 to reach $1.8 billion.