War is good business? Global arms sales hit record $679bn in 2024; US and Russia among the biggest gainers

In 2024, global arms manufacturers recorded their highest earnings on record last year, with the world’s top 100 defence companies bringing in an estimated $679 billion in sales, according to a new report. The Stockholm International Peace Research Institute (SIPRI) says the surge was driven largely by the wars in Ukraine and Gaza, as governments raced to secure weapons and replenish shrinking stockpiles.

Highest ever revenues for weapon makers

According to the report, revenues were up nearly six per cent compared with the previous year, and almost 26 per cent higher than in 2015. "Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalised on high demand," said Lorenzo Scarazzato, researcher with the SIPRI Military Expenditure and Arms Production Programme.

Which regions did the demand come from?

Researchers say that the demand was "mostly driven by Europe," although "all areas have increased except for Asia and Oceania". Jade Guiberteau Ricard, another researcher with the programme, said that Europe's increased demand can be traced to the war in Ukraine and "the threat perception of Russia by European states". He said that the demand was driven by Ukraine and countries supporting it militarily. Ricard added that even countries not directly supplying Kyiv have been expanding and modernising their own militaries, this he predicts "will present a new source of demand".

Arm makers that got richer

The United States remained the centre of global weapons manufacturing, home to 39 of the top 100 companies, including industry heavyweights Lockheed Martin, RTX and Northrop Grumman. Combined, American manufacturers generated $334 billion in sales, close to half the world's total.

Europe posted the fastest regional growth, with revenues up 13 per cent to $151 billion. One of the biggest jumps came from the Czech-based Czechoslovak Group, which saw sales soar nearly 200 per cent due to its role in supplying artillery ammunition to Ukraine.

Russia’s own defence industry, represented by Rostec and United Shipbuilding Corporation, posted a 23 per cent revenue increase despite sanctions and shortages of high-tech components.

Asia-Pacific was the only region to dip, with sales down slightly due to contracting demand in China following corruption allegations in procurement. Japanese and South Korean companies, however, saw strong growth, helped in part by European buyers.

In the Middle East, revenues reached $31 billion, led by Israeli manufacturers whose exports remain in high demand. The "growing backlash over Israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons," said SIPRI researcher Zubaida Karim.