Revenues of global arms manufacturers are growing due to ongoing conflicts

Record profits of arms manufacturers in 2024 are officially recorded — and the figures are no longer about a “trend,” but about a new level of the global industry. According to SIPRI, the top one hundred companies earned 679 billion dollars. Global tensions and wars in Ukraine and Gaza have led to the defense sector becoming one of the fastest-growing segments of the economy. Nominal growth is 5.9%, but in fact, this is a leap that reflects the mood of states much better than any statements.

The highest concentration of income is in the USA. Thirty-nine companies account for almost half of all global sales. The American sector is once again where it is used to being: in the position of a player that sets market standards, even if competitors are starting to catch up.

The European part of the ranking looks different — there is currently dynamics. In the SIPRI list, there are 26 companies, and 23 of them report revenue increases. In total — 151 billion. The Czech Czechoslovak Group shows the sharpest growth: plus 193%, all due to artillery shells for Ukraine. Simultaneously, “Ukrainian Defense Industry” is also ramping up, plus 41%, with a total of 3 billion dollars — the country is forced to restructure in wartime mode.

Russia occupies a separate place in the ranking, and no longer for exports. Sanctions cut external supplies, but its domestic demand is growing so much that it offsets this failure. SIPRI emphasizes: production has been turned to meet the needs of the army, and this is evident from the figures. “Rostec” and “United Shipbuilding Corporation” — plus 23%, 31.2 billion dollars. The production of 152-mm shells increased by 420%. This is not a market, this is a mobilization economy.

The Middle East is also entering the game. Nine companies made it to the SIPRI list for the first time — the region’s total revenue is 31 billion dollars. Israeli manufacturers show a plus of 16%, volume — 16.2 billion. Turkish Baykar holds its line, 1.9 billion dollars in revenue, 95% of which is export. Demand for drones is growing almost faster than the industry can produce.

Growth is not everywhere. In Asia, a decline is recorded — minus 1.2%, a total of 130 billion. Chinese companies fell by 10% amid corruption investigations in procurement. But Japan and South Korea show the opposite trajectory: plus 40% and 31% respectively. Against the backdrop of Taiwan, North Korea, and strategic pressure, the region has become a focal area for investors and analysts.

American giants continue to hold their position. Lockheed Martin — plus 3.8%, almost 334 billion. Thirty out of thirty-nine companies are growing, but SIPRI already talks about overheated contracts, delays, overspending — the market is alive, but not infinite.

The year 2024 closed as the year when the defense industry became both an economic driver and a political indicator. These figures are a slice of reality in which security begins to determine budgets faster than classical economic cycles. We continue to record changes so that readers can see the situation without unnecessary interpretations — this is part of the mission of NAnews — News of Israel | Nikk.Agency.