Arms sales by the 100 largest companies in the world increased by 5.9% in 2024, BGNES reports, citing a report by the Stockholm International Peace Research Institute (SIPRI), News.bg reports.
Their revenues amounted to $679 billion, which marks a record level.
The main driver for these results is the military conflicts in Gaza and Ukraine. Between 2015 and 2024, the revenues of the leading suppliers increased by 26%, with 2024 marking the highest annual revenue since SIPRI began monitoring, said Lorenzo Scarazzato of the institute's Military Expenditure and Arms Production Programme.
Jade Guiberto Ricard emphasizes that the growth is most significant in Europe, where countries are accelerating the modernization and rearmament of their armies due to the war in Ukraine and the perceived threat from Russia. However, most other regions also recorded an increase in revenues, with the exception of Asia and Oceania.
Among the 100 largest companies, 39 are based in the United States, including the three leading companies - Lockheed Martin, RTX and Northrop Grumman. Their combined sales reach $334 billion, or almost half of the global market. However, delays and budget constraints are affecting some key programs, such as the F-35 fighter jet and the Columbia-class submarine.
In Europe, the 26 leading companies saw revenue grow 13% to $151 billion. Czechoslovak Group increased its revenue by 193% to $3.6 billion, thanks to a national initiative to supply artillery ammunition to Ukraine. However, supplies of materials remain a challenge for some European manufacturers.
Two Russian companies - Rostec and United Shipbuilding Corporation - increased their revenue by 23% to $31.2 billion, with domestic demand offsetting export restrictions imposed by international sanctions. At the same time, Russian industry is facing a shortage of skilled labor needed to meet the country's military goals.
In Asia and Oceania, the sector saw a slight decline of 1.2% to $130 billion. Chinese companies reported lower sales, while manufacturers in Japan and South Korea increased their revenues, boosted by European demand.
In the Middle East, nine companies are among the world's largest, with combined revenues of $31 billion, with three Israeli companies accounting for more than half of that.