Global Arms Revenues Hit Record $679 Billion as Nations Rush to Rearm.
A new report from the Stockholm International Peace Research Institute (SIPRI) shows the world’s largest arms manufacturers posted record sales in 2024, as governments accelerated rearmament in response to the wars in Ukraine and Gaza and rising geopolitical tensions across nearly every major region.
According to SIPRI’s annual ranking, released Monday, the world’s top 100 arms producers increased their combined revenues by 5.9 percent last year, reaching an unprecedented $679 billion. It was the first time since 2018 that all five of the largest firms—led by U.S. giants Lockheed Martin, Northrop Grumman, and General Dynamics—saw simultaneous growth.
The surge underscores a global shift toward long-term military modernization. Companies across Europe and the United States expanded production lines, opened new facilities, and pursued acquisitions to meet soaring demand. Yet SIPRI researchers caution that even as revenues rise, persistent supply-chain vulnerabilities, labor shortages, and cost overruns threaten to slow delivery timelines.
U.S. Industry Grows, but Delays Deepen
American firms accounted for nearly half of all global arms revenues in 2024—$334 billion—an increase of 3.8 percent. But the growth came against the backdrop of mounting delays in marquee Pentagon programs, including the F-35 fighter jet, the Columbia-class ballistic submarine, and the Sentinel intercontinental ballistic missile.
SIPRI analysts warn that these setbacks could complicate Washington’s efforts to rein in spending while trying to replenish stockpiles emptied by aid to Ukraine and Israel. Several major systems expected to anchor U.S. military planning into the 2030s now face uncertain timelines.
Europe Rearms at Historic Speed
Europe posted the strongest regional gains, with arms revenues jumping 13 percent to $151 billion. The rise reflects a profound strategic realignment triggered by Russia’s invasion of Ukraine. Nearly every major European arms producer increased sales, and some—like the Czech firm Czechoslovak Group—recorded extraordinary spikes tied directly to Kyiv’s urgent demand for ammunition.
Yet Europe’s ramp-up faces its own obstacles. A heavy reliance on critical minerals—historically sourced from Russia and China—has forced companies to rebuild supply chains at higher cost. Industry leaders warn that these structural challenges could slow production just as governments commit to multi-year defense spending increases.
Russia Grows Despite Sanctions
Russia’s two firms in the ranking—Rostec and United Shipbuilding Corporation—reported a 23 percent revenue increase, despite Western sanctions and shortages of imported components. Domestic military demand more than offset a decline in exports. SIPRI analysts note that the Russian defense industry continues to display resilience that many Western policymakers underestimated.
China’s Revenues Fall Amid Corruption Crackdown
Asia and Oceania was the only region to see a decline, dropping 1.2 percent to $130 billion. The decrease was driven almost entirely by China, where corruption probes and procurement disruptions caused major contracts to be delayed or canceled. NORINCO, China’s primary land systems manufacturer, saw revenues fall by 31 percent—one of the steepest drops in the entire ranking.
By contrast, Japan and South Korea reported booming sales as they deepen security partnerships with Europe and expand domestic procurement.
Middle East Arms Industry Expands Rapidly
A record nine Middle Eastern firms, including five from Turkey, entered the Top 100, posting combined revenues of $31 billion. Israeli companies grew by 16 percent despite global criticism of the Gaza war, while the UAE’s EDGE Group continued its rise as one of the world’s fastest-growing state-linked defense conglomerates.
A Defense Industry Reshaped by War
The overall picture, SIPRI says, is unmistakable: The global arms market is entering a period of sustained expansion. The ripple effects—economic, geopolitical, and strategic—will influence global security long after the wars that triggered this surge have ended.
