The Top 100 Arms Manufacturers Shows Several Interesting Trends
F-35 fighter jets are one of Lockheed Martin's main sources of revenue. Photo: US Department of Defense
The Stockholm International Peace Research Institute (SIPRI) monitors the international arms and equipment market, processes incoming information, and regularly publishes various reports and studies. On December 1, the institute released its latest ranking of the largest arms producers and sellers for 2024. The latest "Top 100" reveals several interesting trends.
General indicators
The new ranking includes companies and organizations from 23 countries. Predictably, the United States is the most heavily represented, with approximately 40 companies. However, the list also includes representatives from countries with less developed military industries. For example, the bottom ten includes one company each from Norway, Spain, and Indonesia.
According to SIPRI estimates, all Top 100 retailers earned a combined $679 billion last year. Compared to the previous year, 2023, their total revenue increased by 5,9%. Significant growth was also observed among the top retailers. For the first time since 2018, all five largest retailers saw revenue increases.
It is noted that companies from the US and Europe are making the largest contribution to the overall growth. American companies in the ranking earned $334 billion last year, a 3,8% increase compared to 2023 figures. Three-quarters of these companies showed growth. Meanwhile, the 26 European companies in the ranking earned $151 billion, a 13% increase.
The military industry is growing in the Middle East. In 2024, nine companies from the region included in the ranking earned $31 billion, a 14% increase. Israel demonstrated the highest revenue growth, up 16% to $16,2 billion. Companies in Turkey and the UAE also performed well.
The B-21 long-range bomber is one of Northrop Grumman's priority projects. Photo: Northrop Grumman
At the same time, Asia and Oceania are seeing a decline in corporate earnings. In 2024, this figure fell by 1,2% to $130 billion. This decline is attributed to the decline in key performance indicators at China's largest companies. Meanwhile, industries in Japan and South Korea have shown significant growth.
Overall, the current military and political situation is stimulating growth in military budgets and helping defense industry companies earn money from new orders. However, the industry faces objective challenges that limit production and revenue growth. For example, some programs are proving prohibitively expensive. Launching new production facilities requires significant investment and takes time. Some organizations are facing supply constraints for essential raw materials and components.
Top Ten
Lockheed Martin remained in first place in 2024, just as it did the previous year. It earned $64,65 billion in military contracts, a 3,2% increase. Interestingly, its revenue is almost one and a half times higher than its nearest competitor.
RTX once again retained second place in the ranking. Military contracts brought in $46,3 billion, a 4,1% increase over 2023 figures. However, the company doesn't rely solely on military contracts—they accounted for only 54% of its revenue.
Northrop Grumman ranked third on the list, the same as the previous year. It primarily produces military products, generating $37,85 billion in revenue, up 3,3%.
The P-8A patrol aircraft helped Boeing through difficult times, but the situation remains challenging. Photo: U.S. War Department
British company BAE Systems moved up from 6th to 4th place. Its revenue increased by 6,9% to $33,8 billion, with military contracts accounting for approximately 95% of its earnings.
American company General Dynamics retained fifth place. It earned $33,63 billion from military contracts, a growth of 8,1%. It also earned $14 billion from non-military sales, accounting for more than a third of its total revenue.
Boeing fell from fourth to sixth place. Its revenue for the year fell by 4,6% to $30,55 billion. However, military contracts account for only 46% of total revenue, and Boeing remains one of the leaders in global aircraft manufacturing.
The Russian state corporation Rostec, which includes numerous other organizations and enterprises, was again ranked 7th. Its revenue was estimated at $27,12 billion, representing a 26,4% increase. Importantly, Rostec is not solely involved in military products, and approximately 30% of its revenue comes from other areas.
Chinese corporation AVIC took 8th place, previously ranking 9th. Its revenue fell by 1,3%, but still reached $20,32 billion. However, the corporation's total earnings exceeded $80 billion—military contracts account for only a quarter of its total revenue.
Rostec companies produce various armored vehicles, including the BMP-3. Photo: Rostec
China's CETC Corporation follows in ninth place. Its revenue was estimated at $18,92 billion, a 10,4% decline from the previous year. However, the corporation's overall income remains at an acceptable level, as military products account for only 34% of its revenue.
American company L3Harris Technologies ranked 10th, earning $16,21 billion and growing by 6,6%. It managed to break into the top ten primarily due to the decline in performance of Chinese corporation NORINCO, which fell to 11th place.
Russian achievements
Only two Russian organizations made the 2024 Top 100. SIPRI's assessments of our industry's performance have a number of specific characteristics and may not reflect the actual state of affairs. Nevertheless, it's worth paying attention to how foreign experts assess Russian industry.
Swedish researchers placed the state corporation Rostec and all its subsidiaries and enterprises in 7th place. Together, they demonstrated strong revenue and record growth.
The United Shipbuilding Corporation also ranks 41st in the ranking. Its revenue was estimated at $4,11 billion, 6,5% higher than the 2023 figures. However, some foreign companies earned more, causing USC to drop from 38th to 41st place over the year.
high precision artillery The Krasnopol-M2 projectile is one of the most current domestic developments and is in demand. Photo: Rostec
It's worth noting that SIPRI compiles its reports and rankings exclusively based on open data. However, in recent years, Russia has significantly changed the procedure for publishing information on military contracts, and much of this information has become classified. As a result, foreign researchers lack a complete picture and face other restrictions.
Apparently, it was precisely due to a lack of information that SIPRI experts had to include the state corporation Rostec as a whole in the rating, rather than individual enterprises and industry holdings. A similar situation may apply to USC. Other large organizations, such as Uralvagonzavod Scientific and Production Corporation and the United Aircraft Corporation, were not included in the rating due to a complete lack of information or insufficient revenue in the publicly available data.
SIPRI notes that in just one year, Russian organizations increased their revenue by almost a third. They were not hampered by foreign sanctions or a decline in the number and share of export orders. Demand from the domestic military fully offset these difficulties. However, several factors remain that could hinder further development.
Interestingly, the Institute urges caution in forecasts for Russian industry. In recent years, despite the expectations of foreign experts, it has demonstrated resilience to various threats and growth.
A growing industry
Thus, the military and political situation in various regions remains complex, and various countries continue to increase defense spending. They place additional orders for various military products, and industry receives lucrative contracts.
Over the past several years, the global defense industry's overall revenue has been steadily growing, and this trend is expected to remain unchanged in 2024. Moreover, the list of industry leaders has remained largely unchanged. It is expected that no radical changes will occur by the end of 2025. However, the SIPRI study on this issue will not be completed anytime soon.
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