Sales by the world’s top 100 arms makers reached a record $679 billion last year, as conflicts in Ukraine and Gaza fueled demand, according to researchers. Production challenges, however, continued to hamper timely deliveries.

The figure represents a 5.9 percent increase from the previous year, and over the 2015–2024 period, revenues for the top 100 arms makers have grown by 26 percent, according to a report by the Stockholm International Peace Research Institute (SIPRI).

“Last year, global arms revenues reached the highest level ever recorded by SIPRI, as producers capitalized on strong demand,” said Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production Programme.

Regional Trends

According to SIPRI researcher Jade Guiberteau Ricard, the growth is mostly driven by Europe, though all regions saw increases except Asia and Oceania.

The surge in Europe is linked to the war in Ukraine and heightened security concerns regarding Russia.

Countries supporting Ukraine and replenishing their stockpiles have also contributed to rising demand.

Ricard added that many European nations are now seeking to modernize and expand their militaries, creating a new source of demand.

US and European Arms Makers

The United States hosts 39 of the world’s top 100 arms makers, including the top three: Lockheed Martin, RTX (formerly Raytheon Technologies), and Northrop Grumman. US companies saw combined revenues rise 3.8 percent to $334 billion, nearly half of the global total.

European arms makers (26 companies in the top 100) recorded aggregate revenues of $151 billion, a 13 percent increase.

The Czech company Czechoslovak Group recorded the sharpest rise, with revenues jumping 193 percent to $3.6 billion, benefiting from the Czech Ammunition Initiative, which supplies artillery shells to Ukraine.

However, European producers face challenges in meeting increased demand, as sourcing raw materials has become more difficult.

Companies like Airbus and France’s Safran previously sourced half of their titanium from Russia before 2022 and have had to identify new suppliers.

Additionally, Chinese export restrictions on critical minerals have forced firms such as France’s Thales and Germany’s Rheinmetall to restructure supply chains, raising costs.

Russian Arms Industry

Two Russian arms makers, Rostec and United Shipbuilding Corporation, are among the top 100, with combined revenues rising 23 percent to $31.2 billion, despite component shortages caused by international sanctions.

Domestic demand largely offset the decline in exports. However, Russia’s arms industry faces a shortage of skilled labor, limiting its ability to sustain production rates necessary for ongoing military operations.

Israeli weapons still popular

The Asia and Oceania region was the only region to see the overall revenues of the 23 companies based there go down — their combined revenues dropped 1.2 percent to $130 billion.

But the authors stressed that the picture across Asia was varied and the overall drop was the result of by a larger drop among Chinese arms makers.

“A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024,” Nan Tian, Director of SIPRI’s Military Expenditure and Arms Production Programme, said in a statement.

Tian added that the drop deepened “uncertainty” around China’s efforts to modernise its military.

In contrast, Japanese and South Korean weapons makers saw their revenues increase, also driven by European demand.

Meanwhile, nine of the top 100 arms companies were based in the Middle East, with combined revenues of $31 billion.

The three Israeli arms companies in the ranking accounted for more than half of that, as their combined revenues grew by 16 percent to $16.2 billion.

SIPRI researcher Zubaida Karim noted in a statement that “the growing backlash over Israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons”.