NewzVille International
According to the data released today by the Stockholm International Peace Research Institute (SIPRI), revenues from sales of arms and military services by the 100 largest arms-producing companies in the world rose by 5.9 per cent in 2024, reaching a record $679 billion.
The report further says that Asia and Oceania was the only world region to see an overall decline in arms revenues among Top 100 companies in 2024, falling to $130 billion, 1.2 per cent less than in 2023.
However, the picture was highly varied within Asia and Oceania. The regional drop was due to a combined 10 per cent decline in arms revenues among the eight Chinese arms companies in the Top 100.
Most prominent was the 31 per cent fall in the arms revenues of NORINCO, China’s primary producer of land systems.
‘A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024,’ said Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme. ‘This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialize’, he added.
In contrast, arms revenues continued to grow among Japanese and South Korean companies in the Top 100 on the back of strong European and domestic demand.
The five Japanese companies increased their combined arms revenues by 40 per cent to $13.3 billion, while the four South Korean producers increased their arms revenues by 31 per cent to $14.1 billion.
South Korea’s largest arms company, Hanwha Group, recorded a 42 per cent increase in its arms revenues in 2024, with more than half coming from arms exports.
Of the 26 arms companies in the Top 100 based in Europe (excluding Russia), 23 recorded increasing arms revenues. Their aggregate arms revenues grew by 13 per cent to $151 billion.
In 2024 the combined arms revenues of US arms companies in the Top 100 grew by 3.8 per cent to reach $334 billion, with 30 out of the 39 US companies in the ranking increasing their arms revenues.
The two Russian arms companies in the Top 100, Rostec and United Shipbuilding Corporation, increased their combined arms revenues by 23 per cent to $31.2 billion, despite international sanctions that led to a shortage of components. Domestic demand was enough to more than offset the revenues lost due to falling arms exports.
For the first time, nine of the Top 100 arms companies were based in the Middle East, with combined arms revenues of $31.0 billion. Arms revenues in the region grew by 14 per cent (see ‘For editors’ below). The three Israeli arms companies in the ranking increased their combined arms revenues by 16 per cent to $16.2 billion.
