Global arms sales surge to a record $679bn in 2024 as wars and tensions drive demand

Sales revenues from the world’s 100 largest arms manufacturers reached a record $679 billion in 2024, up 5.9% from 2023, the Stockholm International Peace Research Institute (SIPRI) reports. The increase was driven largely by the wars in Gaza and Ukraine, rising defence budgets and heightened geopolitical tensions that boosted demand for weapons and military services at home and abroad.

Key findings

Top-line figures: Combined revenues for the top 100 companies totalled $679bn, a 5.9% year-on-year rise. US and European firms accounted for most of the growth, while Asia and Oceania registered a slight decline.

United States: The 39 US firms in the list generated $334bn in arms revenues, up 3.8%. Major contractors such as Lockheed Martin, Northrop Grumman and General Dynamics remained among the largest contributors, and 30 of the 39 US companies reported higher sales than a year earlier.

Regional trends

Europe: Excluding Russian firms, 26 European companies made the top 100 and 23 recorded revenue increases; aggregate European arms revenues rose 13% to $151bn. European suppliers are expanding production capacity in response to Russia’s actions, but SIPRI cautioned that securing critical materials—especially minerals—may become increasingly difficult as export controls tighten.

Asia and Oceania: The region still posted $130bn in arms sales but fell 1.2% overall. A 10% combined drop among eight Chinese firms in the ranking was the main factor; NORINCO saw a 31% decline. SIPRI noted corruption allegations and related contract delays or cancellations in China’s procurement as a source of uncertainty for its military modernisation timeline.

Middle East: For the first time, nine companies based in the Middle East made the top 100, together earning $31bn, a 14% regional increase. SIPRI excluded UAE-based EDGE Group from its Middle East total because comparable 2023 revenue data were not available.

Notable company-level developments

SpaceX entered the top 100 for the first time after arms-related sales more than doubled to $1.8bn in 2024. Czech firm Czechoslovak Group had the largest percentage gain in the ranking, with revenues up 193% to $3.6bn after expanding artillery-shell production for Ukraine.

Ukraine: State-owned JSC Ukrainian Defense Industry increased arms revenues by 41% to $3bn as the country continued to respond to sustained Russian offensives.

Russia: Only two Russian companies—Rostec and United Shipbuilding Corporation—appeared in the top 100; together they raised combined arms revenues by 23% to $31.2bn despite Western sanctions.

Japan and South Korea: Japanese firms in the ranking increased combined arms revenues by 40% to $13.3bn. Four South Korean producers saw a 31% jump to $14.1bn, with Hanwha reporting a 42% rise over 2023 and more than half of its growth coming from exports.

Turkey: A record five Turkish firms made the top 100, combining for $10.1bn in revenues (up 11%). Baykar, known for advanced drones supplied to Ukraine and other buyers, reported $1.9bn in arms sales in 2024, 95% of which were exports.

Israel: Three Israeli companies increased combined arms revenues by 16% to $16.2bn. Elbit Systems reported $6.28bn, Israel Aerospace Industries $5.19bn and Rafael Advanced Defense Systems $4.7bn. SIPRI also noted an international surge in demand for Israeli unmanned aerial vehicles and counter-drone systems, and higher sales of air-defence systems after large-scale missile and drone strikes in April and October 2024.

Risks and programme challenges

Despite revenue gains, SIPRI highlighted persistent schedule delays and cost overruns on major programmes, citing the F-35 fighter, the Columbia and Virginia-class submarines, and the Sentinel intercontinental ballistic missile as prominent examples. The report also warned that supply-chain vulnerabilities—including dependence on critical minerals and tighter export controls—could hamper efforts to expand production rapidly.

“A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024,” said Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme. “This deepens uncertainty around the status of China’s military modernisation efforts and when new capabilities will materialise.”

Overall, the SIPRI data show an industry responding to immediate conflict-driven demand while confronting longer-term constraints from procurement complexities, supply chains and expensive, delayed programmes.