What's happened
As of late 2025, the world's top 100 arms manufacturers reported record revenues of $679 billion in 2024, a 5.9% increase driven mainly by European and U.S. companies amid wars in Ukraine and Gaza. However, Asia and Oceania saw a slight decline due to corruption scandals delaying Chinese arms contracts, raising doubts about China's military modernization.
What's behind the headline?
Rising Global Demand Amid Conflict
The 5.9% revenue increase to $679 billion among the top 100 arms makers reflects how ongoing conflicts and geopolitical tensions directly fuel arms sales. European demand, largely driven by the war in Ukraine and fears of Russian aggression, has surged, with companies like the Czech Czechoslovak Group nearly tripling revenues due to supplying artillery shells. U.S. firms, including Lockheed Martin and Northrop Grumman, also saw steady growth despite persistent program delays and budget overruns in major projects like the F-35.
China's Procurement Crisis and Regional Impact
Asia and Oceania bucked the global trend with a 1.2% revenue decline, primarily due to corruption allegations delaying or canceling major Chinese arms contracts. This disruption casts uncertainty on China's military modernization timeline and capability development. Meanwhile, Japanese and South Korean manufacturers benefited from increased European demand and regional security concerns, notably over Taiwan and North Korea.
Russia and Middle East Dynamics
Despite sanctions and component shortages, Russian arms makers increased revenues by 23%, supported by strong domestic demand. The Middle East's arms industry also expanded, with Israeli companies growing revenues by 16% amid ongoing conflict in Gaza, where international backlash has not dampened global interest in Israeli weapons systems.
Supply Chain Challenges and Future Outlook
European firms face growing difficulties sourcing critical minerals, especially with Chinese export restrictions forcing supply chain restructuring. This bottleneck could constrain production capacity despite rising demand. The arms industry's growth trajectory will likely continue as geopolitical tensions persist, but material shortages and procurement scandals may slow some modernization efforts, particularly in China.
Implications for Global Security
The record revenues underscore how conflict zones and geopolitical rivalries drive the arms market, potentially prolonging instability. The uneven regional growth highlights shifting power dynamics and the complex interplay between domestic politics, international sanctions, and global supply chains. This environment will shape military capabilities and alliances in the coming years.
What the papers say
The Stockholm International Peace Research Institute (SIPRI) report, cited by multiple outlets including The Japan Times and The Times of Israel, reveals a 5.9% global revenue increase for the top 100 arms makers in 2024, reaching $679 billion. The Japan Times highlights how corruption allegations in Chinese arms procurement led to contract delays, deepening uncertainty about China's military modernization, quoting Nan Tian, SIPRI's program director. SBS and Al Jazeera emphasize the role of the Ukraine and Gaza wars in driving demand, with Al Jazeera noting Elon Musk's SpaceX entering the top military manufacturers list after doubling arms revenues.
The Times of Israel and France 24 provide detailed regional breakdowns, noting Europe's 13% revenue growth fueled by Ukraine-related demand and the Czech Czechoslovak Group's 193% surge. They also discuss supply chain challenges, such as Airbus and Safran's need to replace Russian titanium suppliers and the impact of Chinese export restrictions on critical minerals. AP News and The Independent corroborate these findings, underscoring persistent U.S. program delays despite revenue gains and the 1.2% revenue drop in Asia and Oceania due to Chinese industry issues.
Israeli companies' 16% revenue increase amid the Gaza conflict is noted by Al Jazeera and AP News, with SIPRI researcher Zubaida Karim stating that international backlash has had little impact on global interest in Israeli weapons. Russian arms makers Rostec and United Shipbuilding Corporation increased revenues by 23% despite sanctions, as reported by France 24 and The Times of Israel, though labor shortages pose challenges. These varied perspectives collectively illustrate a complex global arms market shaped by conflict, geopolitics, and supply constraints.
How we got here
Global military tensions, notably the wars in Ukraine and Gaza, have spurred countries to increase defense spending. This surge has boosted arms manufacturers' revenues worldwide, except in Asia where Chinese procurement issues have caused setbacks. The Stockholm International Peace Research Institute (SIPRI) annually tracks these trends, highlighting shifts in global arms production and sales.
Go deeper
- Why did Chinese arms companies see a revenue decline in 2024?
- How are European arms manufacturers responding to increased demand?
- What impact do conflicts in Ukraine and Gaza have on global arms sales?
Common question
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Why Did Arms Revenues Hit a Record High in 2024?
In 2024, the global arms industry reached a new peak with revenues soaring to $679 billion. This surge raises questions about what’s driving this growth, which countries and companies are benefiting most, and what it means for global security. Understanding these trends can help you grasp the complex dynamics behind the world’s largest arms trade. Below, we explore the key factors behind this record-breaking year and what it signals for the future.
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What Does the Record $679 Billion in Global Arms Revenue Mean for World Tensions?
In 2024, global arms revenues hit a staggering $679 billion, driven by increased military spending in regions like Europe, the Middle East, and North America. This surge reflects ongoing conflicts, regional tensions, and the push for modernized arsenals. But what does this record-breaking figure tell us about international stability and future conflicts? Below, we explore the key questions surrounding this alarming trend and what it could mean for global diplomacy.
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Stockholm International Peace Research Institute (SIPRI) is an international institute based in Stockholm, Sweden. It was founded in 1966 and provides data, analysis and recommendations for armed conflict, military expenditure and arms trade as well as...
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JSC United Shipbuilding Corporation is an open joint stock company in Russia which unites shipbuilding, repair and maintenance subsidiaries in western and northern Russia, and in the country's Far East, to streamline civilian shipbuilding using military f
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Rostec, officially the State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product Rostec and formerly Rostekhnologii, is a Russian state-owned holding conglomerate headquartered in Moscow that speciali
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Lockheed Martin Corporation is an American aerospace, defense, arms, security, and advanced technologies company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in North
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The Czechoslovak Group, formerly Excalibur Group, is a Czech industrial-technological holding company encompassing over 100 companies with over 14,000 employees worldwide.
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Northrop Grumman Corporation is an American global aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military technology providers.
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General Dynamics Corporation is an American aerospace and defense corporation. As of 2019, it was the fifth-largest defense contractor in the United States, and the sixth-largest in the world, by sales.
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Israel, formally known as the State of Israel, is a country in Western Asia, located on the southeastern shore of the Mediterranean Sea and the northern shore of the Red Sea.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Israel Aerospace Industries or IAI is Israel's major aerospace and aviation manufacturer, producing aerial and astronautic systems for both military and civilian usage. It has 15,000 employees as of 2018. IAI is completely state-owned by the government of
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The Gaza Strip, or simply Gaza, is a self-governing Palestinian territory on the eastern coast of the Mediterranean Sea, that borders Egypt on the southwest for 11 kilometers and Israel on the east and north along a 51 km border.
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Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
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Elbit Systems Ltd. is an Israel-based international defense electronics company engaged in a wide range of programs throughout the world.