GNV News　2024/12/6

On 12/2, 2024, the Stockholm International Peace Research Institute (SIPRI) released data on global arms production in 2023. In 2023, revenues of the world’s top 100 arms-producing and military services companies exceeded 600 billion US dollars, up 4.2% from the previous year.

Revenue growth was seen across all regions, with especially sharp increases among companies based in Russia and the Middle East. In Russia, the state-owned holding company Rostec and others posted large revenue gains, attributed to increased production of combat aircraft and other equipment following the invasion of Ukraine, cited as the reason. In the Middle East, 3 companies in Turkey recorded substantial sales growth, associated with increased exports related to the invasion of Ukraine. In addition, 3 companies in Israel boosted sales amid higher demand due to the conflict in Gaza.

In Asia, 4 firms based in South Korea, including Hanwha Group, and 5 based in Japan, including NEC Corporation (NEC), saw significant sales increases. For South Korean companies, this appears to be driven by expanding global market share, while for Japanese companies, increased domestic demand due to military build-up policies is seen as the reason.

Of the 100 companies, 41 are based in the United States, accounting for half of total revenue. By contrast, at Lockheed Martin, the world’s largest weapons manufacturer, and others, revenue declined year on year, reportedly due to supply chain issues.

Companies based in Europe showed little growth. These companies produce complex weapons that take time to manufacture and are considered slower to respond to changes in demand, which is thought to be the reason .

Behind the revenue growth of the arms industry are strong ties with governments and the military. Arms manufacturers and the military lobby the governments that set military budgets. This close relationship is known as the military-industrial complex.

Learn more about the military-industrial complex→「Military-Industrial Complex: The enormous power not visible in news coverage」　

The British main battle tank “Challenger 2,” manufactured by BAE Systems (Photo: Defence Imagery / Flickr [CC BY-NC 2.0])