GLOBAL ARMS SALES SOAR TO RECORD HIGH AMID MILITARY MODERNIZATION SURGE

Tue 02 December 2025:

According to a Stockholm International Peace Research Institute (SIPRI) report released on Monday, international arms trade hit a record high in 2024, driven by governments’ rush to update military capabilities and ramp up weapons purchases in the face of persistent wars and escalating global rivalries.

Revenues generated by the world’s 100 largest defense companies rose by 5.9% last year to a record $679 billion, marking the strongest collective increase since 2018. SIPRI links the surge primarily to the wars in Ukraine and Gaza, as well as heightened regional security concerns and higher defense spending among major powers.

The US and Europe accounted for most of the growth. US manufacturers posted $334 billion in combined sales, despite continued delays and cost overruns in major programs such as the F-35 fighter jet and the Columbia-class submarine.

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In Europe, 23 of 26 companies increased revenue, with overall regional sales climbing 13% to $151 billion. Czech firm Czechoslovak Group recorded the steepest rise globally-up 193%-largely due to supply contracts for Ukraine.

Billionaire Elon Musk’s SpaceX appeared in the list of top global military manufacturers for the first time, after its arms revenues more than doubled compared with 2023 to reach $1.8bn.

Excluding Russia, there were 26 arms companies in the top 100 based in Europe, and 23 of them recorded increases in revenues from sales of weapons and equipment. Their aggregate arms revenues grew by 13 percent to $151bn.

After boosting revenues by 193 percent to reach $3.6bn through making artillery shells for Ukraine, Czech company Czechoslovak Group recorded the sharpest percentage increase in arms revenues of any top 100 company in 2024.

As Ukraine faces a relentless Russian offensive in its eastern regions, the country’s JSC Ukrainian Defense Industry increased its arms revenues by 41 percent to $3bn.

European arms companies have been investing in new production capacity to fight off Russia, the SIPRI report said, but it cautioned that sourcing materials – particularly in the case of dependence on critical minerals – could pose a “growing challenge” as China also tightens export controls.

Rostec and United Shipbuilding Corporation are the only two Russian arms companies in the ranking, and they also increased their combined arms revenues by 23 percent to $31.2bn despite being hit by Western-led sanctions over the Ukraine war.

Last year, weapons makers in Asia and Oceania still registered $130bn in revenues after a 1.2 percent decline compared to 2023.

The regional drop was due to a combined 10 percent decline in arms revenues among the eight Chinese arms companies in the ranking, most prominently the 31 percent fall in the arms revenues of NORINCO, China’s primary producer of land systems.

Türkiye added a fifth company to the ranking, with MKE joining ASELSAN, TAI, Baykar and Roketsan. The country recorded an 11% year-on-year increase in annual arms sales, reaching a combined $10.1 billion in revenues.

Russian firms also expanded earnings despite sanctions and labor shortages, with revenues up 23% to $31.2 billion, driven by strong domestic demand.

In contrast, total sales in Asia-Oceania fell 1.2%, pulled down by a sharp decline in Chinese procurement amid corruption investigations. However, Japanese and South Korean companies reported strong double-digit growth, fueled by export demand and regional rearmament.

The Middle East recorded its highest-ever presence in the Top 100, with nine companies generating $31 billion. Israeli manufacturers increased sales despite global criticism of the Gaza war.

The United Arab Emirates’ state-owned EDGE Group ranked 37th with $4.7 billion in revenues.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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