The revenue of global arms manufacturers grew by a significant rate in 2024, as the increased geopolitical tensions and the situation in Ukraine and Gaza were generating the most important sales. A new report published by Stockholm International Peace Research Institute (SIPRI) showed that the top 100 weapons manufacturers in the world have increased their returns on arms sales and military services by 5.9 percent. The total of their revenues increased to $679 billion, which is the highest recorded by SIPRI.
A large part of this leap was due to United States and European based companies which saw a rise in defense expenditure, the a rush to procure how they could, and as a way of replenishing the depleted military inventories. Thirty percent of major firms in the United States out of 39 firms such as Lockheed Martin, Northrop Grumman, and General Dynamics reported an increase in revenue. Combined, the U.S firms produced 334 billion, a 3.8 percent increase over the last year. Nonetheless, SIPRI emphasized the constant crises, as many of the largest U.S. programs, including the F-35 fighter jet, were characterized by delays and exceeded costs.
European defence firms recorded good performance as well. With the exception of Russia, 23 of the 26 European companies in the top 100 recorded a rise in their arms revenue, which boosted their aggregate by 13 to $151 billion. The sharp increase was driven by increased military activities in the continent particularly because of the war in Ukraine and increased worries about the Russian military operations. Significant increases were 193 percent in revenues of the Czech Republic based Czechoslovak Group, which was facilitated by the government-sponsored efforts to supply artillery shells to Ukraine, and 41 percent of JSC Ukrainian Defense Industry.
Meanwhile Russian producers, Rostec and United Shipbuilding Corporation, went up by a combined 23 percent to $31.2 billion, even with sanctions and lack of necessary parts. The falling exports were countered with domestic demand.
There is also an increase in arms revenue in the Middle East with Israeli firms recording a 16 percent growth into 16.2 billion.
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