The war in Ukraine and the conflict in Gaza are increasing the world's demand for weapons, as are the rising tensions in East Asia. In 2023 The revenues of the 100 largest arms manufacturers in the world have grown to a total of 632 billion. US dollars - an increase of 4.2% compared to 2022, according to the latest report of the Swedish Peace Research Institute SIPRI, which analyzed the business data of the 100 largest arms companies.
"The most important development in 2023 was that European and American companies in particular were finally able to turn increased demand due to the war in Ukraine into growing revenues," Xiao Liang, one of the report's authors, explained in an interview for DV.
In Russia: 40 percent growth in turnover
According to the researchers, the two Russian arms companies included in the SIPRI ranking report a higher turnover of as much as 40 percent. Experts suggest that Russia has produced fighter jets, drones, tanks, ammunition and missiles on a particularly large scale.
However, it is difficult to specify more precise data, emphasizes Lorenzo Scarazzato from SIPRI. He told German public media ARD that after the annexation of Crimea by Russia in 2014, information has become increasingly unavailable and opaque, and experts are working with approximate data. “But it is useful to be able to give a general idea of what is happening in Russia”, adds Scarazzato.
Record sales in Israel
Israeli arms companies have also achieved a record turnover against the background of the war in Gaza. There were also many orders for European arms manufacturers, but in 2023 they mostly fulfilled old contracts concluded before the war in Ukraine.
German Rheinmetall and the war in Ukraine
The largest German manufacturer of weapons systems "Rheinmetall" (Rheinmetall) is also achieving good results. The company from Düsseldorf reports a ten percent increase in turnover in 2023. “Rheinmetall" produces weapons that were in high demand last year - for example, ammunition for Ukraine, but also transport equipment, tanks and other combat vehicles.
Made in USA
The American defense company Lockheed Martin continues to top the SIPRI ranking, followed by another US manufacturer - RTX. However, both companies have registered a decline in turnover, which the SIPRI expert explains with their wide product range.
„Their supply chain is much larger than that of other companies and any small disruption can lead to a loss of revenue,” Scarazzato told the German publication.
However, Lockheed Martin and Co.'s sales are likely to grow in the future - as are those of many other manufacturers. Because the numerous wars and conflicts around the world do not bode well for a recent decline in the demand for weapons.
Authors: Nina Werkheuser | Julia Weschenbach