Global arms sales grew by 4.2% in 2023, reaching $632 billion, according to a report by the Stockholm International Peace Research Institute (SIPRI). The increase was driven by rising global conflicts, notably in Gaza and Ukraine, as well as tensions in East Asia and broader rearmament efforts. Countries in Russia and the Middle East experienced particularly sharp revenue hikes.
The top 100 global arms manufacturers showed strong financial performance, with nearly three-quarters of them reporting growth. The U.S. dominated the rankings, with 41 companies contributing $317 billion, a 2.5% increase from the previous year. However, two of the largest U.S. companies, Lockheed Martin and RTX, saw declines due to complex supply chain issues, particularly in aeronautics and missile sectors.
European arms manufacturers, with $133 billion in revenue, showed only a slight increase of 0.2%. Despite this, companies in countries like Germany, Sweden, and Ukraine experienced growth, driven by demand for artillery and air defense systems due to the ongoing war in Ukraine. Russia’s arms companies, particularly Rostec, reported a significant 40% revenue jump, reflecting substantial production of combat aircraft, missiles, and other equipment as the Ukraine conflict continued.
In Asia, South Korea and Japan saw substantial increases in arms sales, particularly following Japan’s military expansion. South Korean companies reported a 39% rise in revenue, while Japanese companies experienced a 35% increase. The Middle East also saw a boost, with Israeli arms manufacturers recording their highest-ever revenues amid the Gaza conflict.
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