The revenues of the hundred largest companies from the sale of weapons and military services reached $632 billion in 2023, marking a 4.2% increase compared to 2022. The growth in arms sales revenues was observed across all regions, with particularly sharp increases noted for companies based in Russia and the Middle East.
This information comes from a report by the Stockholm International Peace Research Institute (SIPRI).
Arms deliveries from 2019-2023: top global exporters and importersThe USA remained the largest arms exporter in the world from 2019 to 2023. India was the largest importer, while Ukraine ranked fourth.Experts noted that last year many arms manufacturers ramped up production in response to rising demand.
The total revenues from arms sales for the top 100 recovered after a decline in 2022. Nearly three-quarters of the companies reported increased earnings year-on-year. Most of the companies that saw revenue growth were in the lower half of the list.
41 companies based in the USA earned $317 million from arms sales, which is a 2.5% increase from 2022.
However, Lockheed Martin and RTX, the two largest arms manufacturers globally, were among those who earned less. "Large companies like Lockheed Martin and RTX, which manufacture a wide range of weapons, often rely on complex, multi-tiered supply chains, making them vulnerable to ongoing supply chain issues in 2023. This is particularly true for the aerospace and missile sectors,” SIPRI explained.
The combined revenues from arms sales of the 27 largest companies in Europe (excluding Russia) in 2023 amounted to $133 billion, only 0.2% more than the previous year. This represented the smallest growth among all regions worldwide.
However, as noted by SIPRI, European arms companies that produce complex weapon systems primarily worked on existing contracts in 2023, meaning their revenues for the year did not reflect a surge in new orders.
At the same time, companies in Germany, Sweden, Ukraine, Poland, Norway, and the Czech Republic were able to capitalize on the demand for arms (especially munitions, artillery, air defense systems, and ground systems) related to the war in Ukraine.
Two Russian companies in the top 100 increased their combined revenue by 40% to $25.5 billion. This was almost entirely due to the state holding Rostec increasing its arms sales revenue by 49%.
"Official data on Russian arms production is scarce and questionable, but most analysts believe that the production of new military equipment significantly increased in 2023, while the existing arsenal of Russia underwent extensive reconstruction and modernization. In particular, it is believed that combat aircraft, helicopters, drones, tanks, munitions, and missiles were produced in large quantities as Russia continued its offensive in Ukraine,” noted Dr. Nan Tian from SIPRI.
23 companies based in Asia and Oceania reported a 5.7% increase in arms sales revenue, reaching $136 billion.
Six of the top 100 arms companies are based in the Middle East, and their combined revenues grew by 18% to $19.6 billion.
With the onset of the war in Gaza, the revenues from arms sales for three companies based in Israel and included in the top 100 reached $13.6 billion, the highest figure ever recorded by Israeli companies.
The revenues from arms sales for three companies based in Turkey increased by 24% to $6 billion. This was also driven by exports related to the war in Ukraine.
It is worth noting that in 2022, the revenue from arms and military services of the 100 largest companies in the industry amounted to $597 billion.
Additionally, it was reported that Ukraine became the largest European arms importer from 2019 to 2023 and the fourth largest in the world.