Global arms sales in 2024 hit an all-time high, as defense companies took advantage of the high demand period, said today today Lorenzo Scarazzato, an expert at the Sweden-based Institute for International Peace Research (SIPRI).
According to SIPRI, sales of the world's top 100 defense companies in 2024 reached a record of 679 billion USD, 5.9% higher than the previous year. The total revenue of this group also increased by 26% in the period from 2015 to 2024.
There are up to 39 US corporations on the list of the world's top 100 defense companies. The companies will earn $334 billion in 2024 and account for nearly half of total global sales. This figure increased by about 5.8% over the same period previous year.
The increase in 2024 mainly comes from Europe, due to demand from Ukraine, military aid providers for the country and countries that need to supplement their reserves. Many European countries are looking to expand the scale and modernize the army, creating a new source of demand for weapons.
Along with the US, 26 companies from Europe achieved a growth rate of 13%, with a total order value of 151 billion USD. Czechoslovak Group (CSG) recorded the highest growth on the list, reaching 193%, with sales of 3.6 billion USD, mainly thanks to the initiative to provide artillery shells to Ukraine initiated by the Czech Republic.
Two Russian corporations are also on the list with total revenue of 31.2 billion USD, up 23%. SIPRI said Russia is lacking skilled labor to ensure the productivity needed for the current needs of the military.
Total revenue of the 23 companies in Asia and the ocean decreased by 1.2%, down to 130 billion USD. Experts say the decline is due to Chinese defense companies, as many major contracts were postponed or canceled in 2024. In contrast, Japan and South Korea's revenue has increased thanks to demand from Europe.
9 enterprises headquartered in the Middle East achieved sales of 31 billion USD. Three Israeli enterprises had total revenue increase of 16%, to 16.2 billion USD.
SIPRI said European defense companies are having difficulty meeting demand, as their search for raw materials will face increasing obstacles.
