ISLAMABAD (MNN); Global arms sales by the world’s top 100 manufacturers reached a record $679 billion in 2024, up 5.9% from 2023, according to the Stockholm International Peace Research Institute (SIPRI). The surge reflects heightened demand amid the wars in Ukraine and Gaza, as well as rising geopolitical tensions. Over the past decade, total defense revenues of these companies have risen by 26%.
US and Europe Lead Growth, SpaceX Joins Top 100
US companies, including Lockheed Martin, Northrop Grumman, and General Dynamics, saw combined revenues rise 3.8% to $334 billion. Thirty out of 39 US firms reported gains. For the first time, Elon Musk’s SpaceX appeared on the SIPRI Top 100 list, with arms-related revenues doubling to around $1.8 billion. European manufacturers, excluding Russia, saw a 13% increase to $151 billion, with Czech company Czechoslovak Group posting the highest growth at 193%, largely due to contracts supplying Ukraine.
Russia Grows Despite Sanctions
Russia’s top companies, Rostec and United Shipbuilding Corporation, increased revenues by 23% to $31.2 billion, with domestic demand offsetting export declines.
Asia-Pacific Sees Mixed Results
The region recorded an overall decline of 1.2% to $130 billion, mainly due to Chinese companies facing contract delays amid corruption allegations. Japan and South Korea, however, saw growth of 40% and 31% respectively, while India’s top three firms recorded an 8.2% rise to $7.5 billion.
Israel Benefits from Gaza Conflict
Nine regional companies entered the Top 100 for the first time, with combined revenues of $31 billion, a 14% increase. Three Israeli firms saw revenues rise 16% to $16.2 billion due to high demand for drones, air defense, and counter-drone systems during the Gaza conflict. UAE’s EDGE Group recorded $4.7 billion in revenue.
Challenges Ahead
SIPRI highlighted challenges including supply-chain constraints, reliance on raw materials, and delays in major US defense projects such as the F-35 jet, Columbia-class submarines, and Sentinel ICBMs. Despite challenges, governments’ efforts to modernize arsenals are driving rapid industry expansion, shaping global defense budgets for years to come.
