Revenues from sales of arms and military services by the 100 largest companies in the industry reached US $632 billion in 2023, a real term increase of 4.2 per cent compared with 2022.
According to new data released today by the Stockholm International Peace Research Institute (SIPRI), established in 1966, is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament.
Arms revenue increases were seen in all regions, with particularly sharp rises among companies based in Russia and the Middle East.
Overall, smaller producers were more efficient at responding to new demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programmes elsewhere, the release reads.
In 2023 many arms producers ramped up their production in response to surging demand.
‘There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024,’ said Lorenzo Scarazzato, a Researcher with the SIPRI Military Expenditure and Arms Production Programme.
The 41 companies in the Top 100 based in the United States recorded arms revenues of US $317 billion, half the total arms revenues of the Top 100 and 2.5 per cent more than in 2022. Since 2018, the top five companies in the Top 100 have all been based in the USA, added the release.
Of the 41 US companies, 30 increased their arms revenues in 2023. However, Lockheed Martin and RTX, the world’s two largest arms producers, were among those registering a drop.
The combined arms revenues of the 27 Top 100 companies based in Europe (excluding Russia) totalled US $133 billion in 2023 which was only 0.2 per cent more than in 2022, it said.
At the same time, several other European producers saw their arms revenues grow substantially, driven by demand linked to the war in Ukraine, particularly for ammunition, artillery, and air defence and land systems.
Notably, companies in Germany, Sweden, Ukraine, Poland, Norway and Czechia were able to tap into this demand.
The two Russian companies listed in the Top 100 saw their combined revenues increase by 40 per cent to reach an estimated US $25.5 billion. This was almost entirely due to the 49 per cent increase in arms revenues recorded by Rostec, a state-owned holding company controlling many arms producers, including seven previously listed in the Top 100 for which individual revenue data could not be obtained.
The 23 companies in the Top 100 based in Asia and Oceania recorded 5.7 per cent arms revenue growth year-on-year, to reach US $136 billion.
The four South Korea-based companies recorded a combined 39 per cent increase in arms revenues to reach US $11.0 billion, it said.
The five companies based in Japan saw their combined arms revenues rise by 35 per cent to US $10.0 billion.
‘The sharp growth in arms revenues among South Korean and Japanese companies reflects the bigger picture of military build-ups taking place in the region in response to heightened threat perceptions,’ said Xiao Liang, a Researcher with the SIPRI Military Expenditure and Arms Production Programme.
Six of the Top 100 arms companies were based in the Middle East. Their combined arms revenues grew by 18 per cent to US $19.6 billion.
With the outbreak of war in Gaza, the arms revenues of the three companies based in Israel in the Top 100 reached US $13.6 billion. This was the highest figure ever recorded by Israeli companies in the SIPRI Top 100.
The three companies based in Türkiye saw their arms revenues grow by 24 per cent to US $6.0 billion, benefiting from exports prompted by the war in Ukraine and from the Turkish government’s continued push towards self-reliance in arms production.
The nine companies in the Top 100 based in China saw their smallest year-on-year percentage increase in arms revenues (+0.7 per cent) since 2019 amid a slowing economy. Their total arms revenues in 2023 reached US $103 billion.
The combined arms revenues of the three Indian companies in the Top 100 increased to US $6.7 billion (+5.8 per cent).
NCSIST, the only Taiwan-based company in the Top 100, recorded a 27 per cent increase in its arms revenues to US $3.2 billion.
Türkiye’s Baykar produces armed uncrewed aerial vehicles (UAVs) that have been widely used in the war in Ukraine. Exports accounted for around 90 per cent of its arms revenues in 2023, which increased by 25 per cent over the year to US $1.9 billion.
The United Kingdom’s Atomic Weapons Establishment, which designs, manufactures and maintains nuclear warheads, recorded the largest year-on-year percentage increase in arms revenues (+16 per cent) among UK companies in the Top 100, to reach US $2.2 billion.
The SIPRI Arms Industry Database was created in 1989. At that time, it excluded data for companies in China, the Soviet Union and countries in Eastern Europe. The current version contains data for 2002-23, including data for companies in Russia. Chinese companies are included from 2015 onwards.
This is the first of three major data launches in the lead-up to the release of SIPRI’s flagship publication in mid-2025, the annual SIPRI Yearbook, the note added.
