Global arms revenues hit a record $679 billion in 2024 — and that surge is reshaping global defence dynamics.
Key Takeaways
- The world’s top 100 arms firms generated $679 billion in arms and military‑services sales in 2024 — a 5.9% rise from 2023 and 26% higher than in 2015.
- The bulk of growth came from firms in the United States and Europe: U.S.-based producers reached $334 billion, while European (non-Russian) firms climbed to $151 billion.
- Arms revenues in Asia and Oceania dropped slightly, mainly because major Chinese military firms saw a significant decline.
- Despite the boom, analysts warn of growing strain on supply chains, especially for critical minerals needed for weapons production.
What the Numbers Show
Global Picture: A Steep Climb
The latest Stockholm International Peace Research Institute (SIPRI) report reveals that 2024 was the most lucrative year ever recorded by the world’s top arms manufacturers.
Over the decade from 2015 to 2024, total revenues rose by 26%. That’s decades of buildup condensed into sustained growth — a signal that global demand for arms is not just spiking temporarily, but may be entering a structurally higher phase.
Regional and Company-Level Dynamics
United States — Still King of Arms Revenue
- U.S. firms’ combined revenues rose 3.8% to $334 billion in 2024.
- About 30 of the 39 U.S.-based companies in the top 100 saw gains.
- But growth masks growing pains: major defence programmes (like the F‑35 fighter jet, the Columbia‑class submarine, and Sentinel ICBMs) continue to suffer from delays and budget overruns — a bottleneck for future deployment.
Europe — Rapid Rearmament Under Pressure
- European (non-Russian) arms makers saw revenues jump 13% to $151 billion.
- Some companies exploded in growth: for example, the Czech firm Czechoslovak Group saw its 2024 revenue surge 193% (to about $3.6 billion), driven by shell orders for Ukraine.
- The expanded European demand reflects alarm over regional security, especially with the war in Ukraine and the perceived threat from Russia.
But the boom comes with a growing risk: supply‑chain stresses. Many European firms rely on critical minerals imported from Russia or China — and after Russia’s invasion and China’s tighter export controls, firms warn of rising costs and supply bottlenecks.
Asia & Oceania — The Outlier Drop, Largely Driven by China
- For the first time in years, Asia and Oceania saw a slight dip in arms revenues overall.
- That drop is driven mainly by a slump in Chinese arms firms. Several major producers — including NORINCO — faced a significant revenue hit after corruption investigations and contract cancellations.
- The shortfall suggests a possible slowdown in China’s weapons exports — or a retraction in global demand for Chinese-made systems, at least in the near term.
Others — Russia, Middle East, and Emerging Producers
- Despite heavy sanctions and export curbs, Russian firms (notably Rostec and United Shipbuilding Corporation) saw a 23% increase in arms revenue to a combined $31.2 billion, driven almost entirely by domestic demand.
- In the Middle East, arms firms — including Israel’s Rafael Advanced Defense Systems — saw a notable uptick of 23% (to about $4.7 billion), thanks in part to demand triggered by regional conflicts.
- Meanwhile, smaller producers elsewhere also picked up modest gains, indicating a broader — though uneven — spread of arms manufacturing beyond traditional power centers.
What the Surge Means — And Why Stockholm International Peace Research Institute (SIPRI) Is Raising Alarms
A New Normal of High Demand
- The fact that revenues rose across nearly all regions (except Asia-Oceania) suggests this isn’t a flash‑in‑the‑pan reaction, but a global recalibration of defence priorities.
- Governments seem to be betting on long-term instability: weapons orders being placed by European, Middle Eastern, and Asian states aren’t just for short-term conflict, but for decades-long deterrence and readiness.
Strain on Production and Supply‑Chains
- Some of the biggest firms are now expanding production lines, building new facilities, acquiring subsidiaries — effectively scaling up permanently.
- But sourcing key materials (like rare earths, titanium, critical minerals) is getting harder. Several European firms warned that supply‑chain restructuring — partly due to geopolitical fractures and export controls — could lead to delays, cost inflation, or production bottlenecks.
- In the U.S., major programmes are already slipping timelines. That could affect long-term strategic planning for militaries relying on those advanced systems.
Geopolitical Impact — Weaponization of Tension
- The spike in arms revenues is tightly linked to ongoing conflicts (like in Ukraine and Gaza) and broader regional instability. As governments modernize arsenals, the world may see an escalation cycle: more weapons → increased perception of threat → demand for more weapons.
- Smaller or emerging arms producers (in Middle East, Eastern Europe, etc.) are carving out space — which could reshape global arms supply chains. The traditional dominance of US, Russia, China may gradually decentralize.
Quick Comparison: 2023 vs 2024
| Region / Group | 2023 Revenue (approx.) | 2024 Revenue | Change (%) | Notes |
|---|---|---|---|---|
| Global (Top 100) | ~$640 billion | $679 billion | +5.9% | Highest ever recorded |
| United States firms | ~$322 bn | $334 bn | +3.8% | 30 of 39 firms up |
| Europe (non-Russia) | ~$134 bn | $151 bn | +13% | Surge due to Ukraine war and perceived Russian threat |
| Asia & Oceania | Slightly below prior year | Slight drop | ~–1.x% | Chinese firms’ slump drove the decline |
Why It Matters — For Global Stability and Policy
- Arms race locked in: With many countries scaling procurement and modernization simultaneously, the risk of prolonged arms race — especially in volatile regions — is rising.
- Supply‑chain vulnerabilities: Dependence on critical minerals means that disruptions (export bans, geopolitical friction, resource scarcity) could lead to widespread delays.
- Global spread of arms manufacturing: As firms outside traditional superpowers grow, weapons systems could proliferate more broadly — shifting the centre of arms production.
- Budget pressures and opportunity costs: Governments divert more funds to defence. Social, infrastructure, and human‑development spending may suffer long‑term.
Frequently Asked Questions
That figure represents revenues from sales of arms and military services by the 100 largest arms‑producing companies. It covers major defense equipment, services, systems — not every small‑arms manufacturer everywhere.
Because major arms firms based in China — a dominant part of that region’s output — suffered a marked drop in revenue. Chinese producers faced contract delays, project cancellations and corruption‑related procurement freezes in 2024.
Possibly — if supply‑chain bottlenecks, cost inflation or political pressure lead governments to pivot away from constant rearmament. But given rising geopolitical tension and states’ growing security concerns, demand may remain high — especially for newer, modern weapons systems.
