Top global arms producers’ revenues surge as major wars rage: SIPRI report

According to new data from the Stockholm International Peace Research Institute (SIPRI), sales of weapons and military services by the 100 largest global arms-producing companies reached a record $ 679 billion in 2024.

In a report released on Monday, the organization reported that the organizations’ revenues from the sales of military goods and services to customers both domestically and abroad increased by 5.9% in response to the conflict in Gaza and Ukraine, as well as global and regional geopolitical tensions and ever-higher military spending.

Companies with headquarters in Europe and the United States contributed the most to the global rise, but there were annual increases in all other countries, with the exception of Asia and Oceania, where issues with the Chinese arms industry slowed the overall total.

The top 100 arms companies in the US saw a combined increase of 3.8 percent in 2024, with 30 of the 39 US companies in the top 100 increasing their revenues, with General Dynamics, Northrop Grumman, and Lockheed Martin leading the pack.

However, SIPRI reported that major projects like the F-35 fighter jet, the Columbia and Virginia-class submarines, and the Sentinel intercontinental ballistic missile are still plagued by widespread delays and budget overruns.

After its arms revenues more than doubled between 2023 and 2023, SpaceX’s shares of the top global military manufacturers were first added to the list.

26 arms companies with headquarters in Europe, excluding Russia, made up the top 100, and 23 of them saw increases in sales of weapons and equipment. Their overall arms revenues increased by 13 percent to $ 151 billion.

Czech company Czechoslovak Group, which increased revenues by 193 percent to $3.6 billion through the production of Ukrainian artillery shells, saw the highest percentage increase in arms revenues of any top 100 company in 2024.

The country’s JSC Ukrainian Defense Industry increased its arms revenues by 41%, or $ 3 billion, as Ukraine fights an ongoing Russian offensive in its eastern regions.

According to the SIPRI report, European arms companies have been investing in new production capacity to compete with Russia, but it was cautioned that sourcing materials could pose a “growing challenge” as China also tightens export controls.

Rostec and United Shipbuilding Corporation, the only two Russian arms companies in the top three, both increased their combined arms revenues by 23 percent to $ 31.2% despite being subject to sanctions from the West for the Ukraine war.

After a 1.2 percent decline from 2023, Asian and Oceania-based weapons manufacturers still had $ 130 billion in revenues last year.

The eight Chinese arms companies in the ranking each had a combined 10% decline in their respective arms revenues, most notably NORINCO, China’s top land system producer, whose arms revenues dropped by 31 percent.

According to Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme, “a number of corruption allegations in Chinese arms procurement led to major arms contracts being delayed or cancelled in 2024.” This raises questions about China’s military modernization efforts and when new capabilities will be developed.

In response to the persistent hostility between Taiwan and North Korea, sales of Japanese and South Korean arms increased thanks to strong customer demand from domestic as well as international customers.

Four South Korean producers saw a 31 percent increase in revenue, while five Japanese companies in the ranking increased their combined arms revenues by 40 percent to $ 13.3 billion. Hanwha Group, South Korea’s largest arms producer, saw a 42 percent increase in 2024, with more than half of it coming from arms exports.

The genocide in Gaza is profited by Israel.

Nine of the top 100 arms companies had their headquarters in the Middle East for the first time, according to SIPRI. In 2024, the nine businesses generated a combined $31 billion in revenue, showing a 14% regional increase.

The United Arab Emirates’ regional figure is excluded from Emirati-based EDGE Group because there is no information on revenue data for 2023, as the country continues to face international accusations that it helped to fund the devastating war in Sudan. The accusations are refuted by the UAE.

In light of the ongoing genocidal war in Gaza, which has killed nearly 70 000 Palestinians and destroyed the majority of the besieged enclave, the three Israeli arms companies in the ranking increased their combined arms revenues by 16 percent to $ 16.2 billion.

Elbit Systems made $6.28 billion in profits, followed by Rafael Advanced Defense Systems, which made $4.7 billion, and Israel Aerospace Industries, which made $5.19 billion.

Israeli unmanned aerial vehicles and counter-drone systems are now in demand, according to SIPRI. After Iran launched extensive retaliatory strikes against Israel in April and October of that year, which used ballistic missiles and drones, Rafael’s stock increased in response to the company’s air defense systems.

Another record-setting number of Turkish businesses were in the top 100. Their combined arms revenues reached $ 10.1 billion, which is an 11 percent increase.

In 2024, Baykar, which exports advanced drones most recently to Ukraine, saw a 95 percent of its $1.9 billion in arms revenue come from exports to other nations.

Source: Aljazeera