STOCKHOLM — The combined arms revenues of the world’s 100 largest arms-producing and military services companies rose to a record $679 billion in 2024, driven largely by higher military spending in Europe and the United States amid rising geopolitical tensions, according to a new report by the Stockholm International Peace Research Institute (SIPRI).
The total marked a 5.9% increase in real terms compared with 2023 and represented the highest level recorded since SIPRI began compiling the annual ranking. Over the past decade, arms revenues among the Top 100 companies have increased by 26%, the institute said.
“The growing demand for military equipment around the world, primarily linked to rising geopolitical tensions, accelerated the increase in total arms revenues seen in 2023,” SIPRI said in its fact sheet accompanying the 2024 rankings.
Companies headquartered in the United States remained dominant, accounting for nearly half of all arms revenues in the Top 100. The 39 U.S.-based companies generated a combined $334 billion in arms revenues in 2024, a 3.8% year-on-year increase, SIPRI said.
Four of the world’s top five arms producers — Lockheed Martin, RTX, Northrop Grumman and General Dynamics — are based in the United States and all posted revenue growth during the year. Lockheed Martin, the world’s largest arms producer, reported arms revenues of $64.7 billion, up 3.2% from 2023, its first increase since 2020.
SIPRI noted that the rise was partly due to deliveries of F-35 combat aircraft that had been delayed by technical setbacks in previous years.
“The 110 F-35s delivered in 2024 were delayed by an average of 238 days per aircraft,” the institute said, adding that the program continues to face “systematic cost overruns.”
European arms companies recorded the fastest regional growth. The 26 European companies in the Top 100 increased their combined arms revenues by 13% to $151 billion, accounting for 22% of the global total.
“Almost all European arms companies recorded increasing or stable arms revenues in 2024 as governments continued to invest in arms procurement and companies ramped up production to meet growing demand,” SIPRI said.
The United Kingdom stood out within Europe, with seven companies generating $52.2 billion in arms revenues, a 6.6% increase. BAE Systems ranked fourth globally, becoming the first company based outside the United States to enter the global top five since 2017.
Germany also saw sharp growth, with its four listed companies increasing arms revenues by 36%, largely driven by demand for ammunition and armored vehicles linked to the war in Ukraine.
By contrast, arms revenues among companies based in Asia and Oceania declined slightly. SIPRI said the combined revenues of the region’s 23 companies fell 1.2% to $130 billion, mainly due to a significant downturn among Chinese arms producers.
The eight Chinese companies in the Top 100 recorded a 10% drop in combined arms revenues, which SIPRI attributed to corruption allegations that led to delayed or canceled contracts. NORINCO, China’s largest land-systems producer, saw its arms revenues fall by 31%, the steepest decline among all companies in the ranking.
In Russia, only two companies were included in the Top 100 due to limited data availability. Their combined arms revenues rose by 23% to an estimated $31.2 billion, as domestic demand linked to the war in Ukraine offset falling exports.
“Russian arms production remained at a high level in 2024, especially in sectors such as ammunition, armoured vehicles, artillery, missiles and uncrewed aerial vehicles,” SIPRI said, while noting that sanctions and shortages of skilled labor continued to constrain the industry.
The Middle East recorded its highest-ever representation in the ranking, with nine companies generating a combined $31.0 billion in arms revenues. Israeli companies accounted for more than half of that total, benefiting from strong domestic demand and exports amid ongoing conflicts.
SIPRI also warned that expanding production capacity could face growing challenges due to trade restrictions on critical materials. Several major arms producers cited limited access to rare earths and other inputs as a major operational risk.
“Should export restrictions continue to escalate, they risk triggering serious supply bottlenecks at a time of surging global demand for military equipment,” SIPRI said.
The SIPRI Top 100 ranking covers arms revenues from military goods and services sold to military customers worldwide and excludes purely civilian activities. The institute said the figures underscore how sustained conflict and strategic competition are reshaping the global arms industry.
