In 2024, revenues from arms sales and military services of the world’s 100 largest arms manufacturers grew by 5.9% to reach an unprecedented $679 billion. This is according to the latest data from the Stockholm International Peace Research Institute (SIPRI), published on December 1. This record figure, which is 26% higher than in 2015, is the result of escalating global conflicts, growing geopolitical tensions, and an unprecedented increase in military budgets around the world.
The main drivers of this record growth were the ongoing wars in Ukraine and the Middle East, particularly in the Gaza Strip. According to SIPRI, demand for weapons rose sharply due to these conflicts, as well as perceptions of threats from Russia in Europe and regional tensions in Asia and the Middle East. “Last year’s global arms sales revenues reached the highest level ever recorded by SIPRI, as manufacturers took advantage of high demand,” said SIPRI researcher Lorenzo Scarzato from the Military Expenditure and Arms Production program.
Many companies are expanding production capacity, building new factories, and making acquisitions to meet growing demand. However, according to experts, they face challenges: delays in deliveries, rising costs, and shortages of critical minerals such as titanium and rare earth elements. In particular, European firms such as Thales and Rheinmetall are warning of potential supply chain cost increases due to Chinese export restrictions.
Most of the growth came from companies in Europe and the US. American firms, which account for 39 of the top 100, increased their revenues by 3.8% to $334 billion — almost half of the total. Thirty of them, including industry leaders Lockheed Martin, Northrop Grumman, and General Dynamics, showed positive growth. Despite the growth, SIPRI highlights systemic problems in the US defense industry: delays and budget overruns in major projects such as the F-35 fighter jet.
In Europe (excluding Russia), there are 26 companies in the ranking, and 23 of them increased their revenues by 13% to $151 billion. This is directly related to the war in Ukraine and the threat from Russia. The record holder in terms of percentage growth is the Czech Czechoslovak Group, whose revenues soared 193% to $3.6 billion thanks to an initiative to supply artillery shells to Kyiv. The Ukrainian state-owned corporation JSC Ukrainian Defense Industry also noted success: +41% to $3 billion.
In the Middle East, revenues grew, and nine companies from the region entered the top 100 for the first time, with a combined total of $31 billion. Three Israeli firms increased their revenues by 16% to $16.2 billion, despite international criticism of Israel’s actions in Gaza. “The growing backlash against Israel’s actions in Gaza seems to have had little effect on interest in Israeli weapons,” comments SIPRI researcher Zubayda Karim. Many countries continued to place orders.
Despite the boom, the industry faces risks. SIPRI warns of potential supply problems: dependence on Russia and China for key materials could lead to new crises. European companies investing in production expansion risk facing rising costs. At the same time, global military spending reached $2.7 trillion in 2024 — another record high — guaranteeing continued demand in 2025.