SIPRI reports global arms sales hit $679b in 2024, says conflicts, wars demands

By Anjali Sharma

WASHINGTON – Stockholm International Peace Research Institute in a key findings released on Sunday said that global arms manufacturers reported record sales in 2024 as conflicts in Ukraine and Gaza and rising defence spending pushed worldwide revenue to USD 679 billion.

The strongest gains came from US and European firms, while China’s slowdown pulled Asia’s numbers down, SIPRI stated.

The world’s largest arms manufacturers logged another year of growth in 2024, driven largely by the ongoing wars in Ukraine and Gaza and a broader rise in military spending.

According to media reports, SIPRI’s latest assessment showed that revenues for the top 100 arms-producing companies rose 5.9% which is 679 billion, the highest figure recorded since the institute began tracking the sector.

It noted that most of the growth came from firms in Europe and the US, reflected higher defence spending and expanded procurement cycles.

Asia and Oceania were the only regions to see a slight decline, largely because delays in China’s arms industry dragged the numbers down, the report stated.

SIPRI stressed that 30 of the 39 US firms on the list, including major suppliers such as Northrop Grumman, Lockheed Martin, and General Dynamics, reported higher arms revenue.

American companies generated USD 334 billion, up 3.8% from the previous year.

SIPRI flagged persistent structural issues in the US defence industry despite the rise, pointing to “widespread delays and budget overruns” in large programmes such as the F-35 fighter jet.

In Europe, 23 of 26 companies (excluding Russia) recorded higher sales, with total revenue climbing to 13% to USD 151 billion.

The increases reflect not higher military budgets but also urgent wartime procurement linked to the conflict in Ukraine.

The Czech Republic’s Czechoslovak Group posted one of the most dramatic jumps, a 193% surge, boosted in part by a government initiative to secure artillery shells for Kyiv.

Ukraine’s state-owned JSC Ukrainian Defense Industry saw a strong year with a 41% rise in revenue.

SIPRI researcher Jade Guiberteau Ricard cautioned that supply chains may face pressure, noted that sourcing critical minerals could become increasingly difficult as countries rework procurement networks and Chinese export controls tighten.

It indicated that 2 Russian firms listed, Rostec and United Shipbuilding Corporation, recorded a combined 23% increase to USD 31.2 billion, despite sanctions and shortages of key components.

The surge, SIPRI noted, was fuelled almost entirely by domestic demand, even as arms exports continued to fall. A shortage of skilled labor remains an obstacle for Russia’s defence sector.

Defence companies in the Middle East posted higher sales, and Israel’s 3 companies collectively recorded a 16% rise to USD 16.2 billion.

SIPRI researcher Zubaida Karim said backlash against Israel’s actions in Gaza “seems to have had little impact on interest in Israeli weapons,” with several countries placed fresh orders in 2024.

Asia and Oceania revenues slipped 1.2% to USD 130 billion, largely because of a 10% drop among China’s top eight firms.

SIPRI said that multiple corruption allegations within China’s defence procurement system led to postponed or cancelled contracts over the past year.