Global Record Revenues in the Defense Sector Reach Record Levels

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The threat situation and global conflicts are allowing internationally operating defense companies to enjoy true revenue records ...

The world's 100 largest weapons producers were able to increase their revenue from the sale of arms and military services by a currency-adjusted 5.9 percent last year due to the geopolitical situation, as reported by the Stockholm International Peace Research Institute (Sipri). This development ultimately led to a combined revenue of around 679 billion dollars (approximately 586 billion euros), which is emphasized as the highest value ever recorded. In light of this trend, defense players have also significantly expanded their production capacities, invested in new facilities, and/or established subsidiaries, according to the report. The war in Ukraine and the situation in the Gaza Strip are particularly noted as key drivers of this revenue increase. Let's take a closer look at how this all breaks down in terms of individual countries ...

The USA Remains the Number One Arms Manufacturer

A total of 39 of the world's 100 largest arms companies are based in the United States! Among them are the undisputed leader Lockheed Martin, as well as RTX and Northrop Grumman, ranked second and third respectively on the Sipri list. Together, these 39 US corporations achieved arms sales of $334 billion after a 3.8 percent increase, accounting for almost half of the global total. For the first time, the US space company SpaceX (ranked 77th) of billionaire Elon Musk also appeared in the Top 100. According to Sipri, the company's arms revenues more than doubled within a year, reaching $1.8 billion. However, arms production in the United States is not without issues, as Sipri notes. In the development and production of key US defense products such as the new F-35 fighter jet, Columbia-class submarines, and the Sentinel intercontinental missile, the Swedes observed delays and budget overruns. These have created uncertainties about when crucial new US weapons systems and upgrades for existing systems could be delivered and deployed.

German Defense Companies Are Playing At the Top

The 26 listed arms companies in Europe (excluding Russia) recorded significant growth, as noted further. Their combined revenues grew by 13 percent to $151 billion. This increase was associated with demand driven by the war in Ukraine and the perceived threat from Russia, according to the peace research institute. The four listed companies from Germany achieved a combined revenue jump of 36 percent to $14.9 billion. According to Sipri, a key reason for this was increased demand for ground-based air defense systems, ammunition, and armored vehicles. Germany's largest defense company, Rheinmetall, saw particularly strong growth of 47 percent to approximately $8.2 billion. As a result, the company climbed six spots in the ranking and now occupies 20th place. Thyssenkrupp (ranked 61), Hensoldt (62), and Diehl (67) also reported double-digit revenue increases, moving them up several spots as well. Airbus (ranked 13), MBDA (30), and KNDS (42) are classified by Sipri as trans-European corporations.