A new SIPRI report shows the world’s top arms producers increased revenue by 5.9% last year, reaching their highest-ever level as conflicts and defence spending surged globally
Stockholm: The world’s largest weapons manufacturers recorded a 5.9% increase in revenue last year, reaching their highest level on record, according to new data released by the Stockholm International Peace Research Institute (SIPRI).
The combined revenue of the top 100 arms companies rose to USD 679 billion in 2024, driven largely by rising military spending linked to the wars in Ukraine and Gaza.
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Most of the growth came from firms in Europe and the United States, while revenues in Asia and Oceania declined slightly due to difficulties within China’s defence sector.
Among US companies, 30 of the 39 listed in the top 100 — including major contractors such as Lockheed Martin, Northrop Grumman and General Dynamics — reported revenue increases. Their combined total rose 3.8% to USD 334 billion. SIPRI noted that many major US-led defence programmes continued to face development delays and budget overruns, including those involving the F-35 fighter jet.
In Europe, 23 of the 26 companies listed, excluding those in Russia, saw revenue growth as defence spending increased across the continent. Their collective income rose by 13% to USD 151 billion, fuelled by demand related to the war in Ukraine and concerns over Russia’s intentions. The Czech Republic’s Czechoslovak Group posted a particularly large rise, with revenue up 193%, partly due to its role in sourcing artillery shells for Ukraine. Ukraine’s state-owned JSC Ukrainian Defense Industry also reported a 41% increase.
European manufacturers are expanding production to meet heightened demand, though SIPRI researchers warned that securing necessary materials may become more difficult, particularly as global supply chains for critical minerals shift in response to Chinese export restrictions.
Russia’s two companies in the ranking — Rostec and United Shipbuilding Corporation — saw combined revenue rise by 23% to USD 31.2 billion. Despite sanctions and a shortage of components, domestic demand remained strong enough to offset declining exports, although the sector faces a shortage of skilled labour.
Arms revenue in the Middle East also increased. The three Israeli companies included in the ranking recorded a collective 16% rise to USD 16.2 billion. SIPRI said that despite international criticism of Israel’s actions in Gaza, global interest in Israeli-made weapons remained strong, with many countries continuing to place orders.
In contrast, total arms revenue in Asia and Oceania fell by 1.2% to USD 130 billion. SIPRI attributed this mainly to a 10% decline among Chinese defence companies following multiple corruption investigations in arms procurement that led to the delay or cancellation of major contracts.
Published: 01 Dec 2025, 10:49 am IST
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