World’s Top Arms Producers Saw Record Revenue Last Year, Report Says

In the United States, the combined revenues of arms companies in the top 100 hit $338 billion, and 30 out of 39 arms companies had increased sales.

Artillery shells of German arms manufacturer Rheinmetall in Unterluess, Germany, on Aug. 27, 2025. Markus Schreiber/AP Photo

The revenues of the world’s 100 largest military service providers and arms manufacturers increased by 5.9 percent in 2024, reaching a record $679 billion, according to a research institute’s report published on Dec. 1.

“Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalized on high demand,” said Lorenzo Scarazzato, co-author of the report and researcher at the Stockholm International Peace Research Institute (SIPRI).

SIPRI said in the summary of its findings that demand was “boosted by the wars in Ukraine and Gaza,” as well as by an increase in governments’ military expenditure and geopolitical tensions.

There were year-on-year increases in almost all regions worldwide, except Asia and Oceania, with the bulk of the rise driven by companies based in the United States and Europe.

The combined revenues of the top 100 U.S. arms companies rose by 3.8 percent, to $334 billion, and 30 out of 39 companies reported increased sales, including Lockheed Martin and Northrop Grumman.

However, SIPRI said that “widespread delays and budget overruns” are affecting projects, which researchers said will inevitably have knock-on effects on U.S. military planning and spending.

Growth in Europe Driven by Ukraine War

Twenty-three out of 26 top arms companies in Europe (excluding Russia) saw increased revenues, growing by 13 percent to $151 billion. This was driven by the war in Ukraine and perceived threat from Russia, researchers said.

The Czech company Czechoslovak Group had the highest revenue increase among the top global companies, rising by 193 percent to $3.6 billion, driven by a Czech government initiative to supply artillery shells to Kyiv.

Researchers said that although European companies are expanding production capacity to meet demand, they face supply chain challenges, including Chinese restrictions on the export of critical minerals.

Europe is currently increasing its defense spending, not only because of concerns over Russian aggression on Europe’s doorstep, but also in response to the Trump administration’s urging that European NATO allies pay more for their own defense.

On June 25, NATO allies backed a commitment to increase defense spending to 5 percent of gross domestic product by 2035. Allies agreed that 3.5 percent should be designated for core defense, such as weapons and troops, and that the remainder should be spent on security-related infrastructure and protecting undersea cables and energy pipelines.

Russia, Middle East, Asia

Despite ongoing sanctions against Moscow that are affecting access to components on the global market, Russia’s two arms companies, Rostec and the United Shipbuilding Corp., had a combined revenue increase of 23 percent to $31.2 billion, according to SIPRI data.

The institute said that Moscow was facing challenges, including a shortage of skilled labor, which “could slow production and limit innovation,” SIPRI senior researcher Diego Lopes da Silva said.

“However, we need to be cautious making such predictions, as Russia’s arms industry has proved resilient during the war in Ukraine, contrary to expectations,” he said.

Arms revenue across the Middle East grew by 14 percent. The top companies include five Turkish companies with a combined revenue of $10.1 billion, an 11 percent year-over-year increase.

Three Israeli arms companies had combined revenue growth of 16 percent to $16.2 billion. Zubaida Karim, report co-author and SIPRI researcher, said that “the growing backlash over Israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons.”

“Many countries continued to place new orders with Israeli companies in 2024,” Karim said.

Asia and Oceania combined saw a decline in arms revenue; it fell to $130 billion, a 1.2 percent year-over-year decline. However, revenue patterns were not uniform across the region; arms companies in Japan and South Korea had continued growth.

On the other hand, eight Chinese arms companies in the top 100 had a combined revenue decline of 10 percent.

Nan Tian, director of SIPRI’s military expenditure and arms production program, said: “A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024.

“This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialize.”