Conflicts push global arms revenues to record levels, SIPRI Report says

By R Anil Kumar

January 1, 2025. Global arms manufacturers reached record revenue levels in 2024 driven by wars and geopolitical tensions, according to data released on Monday by the Stockholm International Peace Research Institute (SIPRI).

The world’s 100 largest defence companies increased their combined revenues from arms sales and related military services by an inflation-adjusted 5.9% last year, reaching an estimated $679 billion, the highest figure ever recorded.

SIPRI said demand was fuelled primarily by the wars in Ukraine and Gaza, rising geopolitical frictions at global and regional levels, and steadily increasing military spending.

Many companies expanded production lines, built new facilities, founded subsidiaries or acquired competitors to meet demand, the think tank said.

The United States remained the dominant force in the market, with 39 of the top 100 firms. Their defence revenues rose 3.8% to $334 billion, nearly half of the global total. Lockheed Martin led the list again, followed by RTX and Northrop Grumman.

For the first time, Elon Musk’s space company SpaceX entered the SIPRI top 100, ranking 77th. Its defence revenue more than doubled year-on-year to $1.8 billion, SIPRI said.

Across Europe excluding Russia, arms revenues rose 13% to $151 billion, driven by strong demand linked to the war in Ukraine and a growing sense of threat from Moscow.

Germany’s four listed defence firms – Rheinmetall (ranked 20), ThyssenKrupp (61), Hensoldt (62) and Diehl (67) – collectively posted a striking 36% increase, reaching $14.9 billion.

War boosts sales in Ukraine, Russia and Israel:

• Russia’s war against Ukraine is also shaping the defence revenues of companies in both countries.
• Ukrainian defence group JSC Ukrainian Defense Industry reported a 41% rise to $3 billion.
• Meanwhile, Russia’s Rostec and United Shipbuilding Corporation grew by 23% to a combined $31.2 billion, despite sanctions and component shortages – demand from the Russian military more than compensating for declining export sales, SIPRI found.
• Israeli defence companies also recorded growth despite international criticism over the Gaza war.
• The three Israeli firms listed posted a combined 16% rise to $16.2 billion, while global interest in Israeli systems remained high and new international orders were placed during 2024, SIPRI researcher Subaida Karim said.

China under strain – and a warning for Europe:

• SIPRI also pointed to growing challenges for Europe’s rearmament drive, particularly in sourcing materials needed for weapons production.
• Researcher Jade Guiberteau Ricard warned that dependence on critical minerals could slow European output, as many of these resources come from China, which effectively holds a monopoly on rare earths.
• China’s defence industry, meanwhile, is struggling with problems of its own. A series of corruption allegations in Chinese arms procurement led to major contracts being postponed or cancelled in 2024, SIPRI expert Nan Tian said.
• As a result, China’s defence revenues fell by 10%. Overall, Asia and Oceania, despite substantial increases in Japan and South Korea, saw a 1.2% decline overall to $130 billion, making it the only part of the world with contracting sales.

Greenpeace: Europe becoming a rearmament hotspot

Greenpeace said the figures show a clear shift in weapons production towards Europe.

While US revenues grew only moderately and Chinese sales declined, European totals have virtually exploded, disarmament campaigner Alexander Lurz told dpa.

“Europe is increasingly becoming the hotspot of global rearmament,” he said, adding that record global spending shows the world is moving ever faster in the wrong direction.

“Security and peace will not come this way,” he said.

SIPRI has been tracking global weapons revenues since 1989 and has included Chinese company data since 2015.

The think tank counts all heavy weapons sales and military services delivered to armed forces domestically or abroad.