After a decline in 2022, arms sales figures increased significantly in 2023 and are expected to continue to rise due to the global geopolitical situation, marked by conflicts and tensions.
Published on 02/12/2024 12:39
Reading time: 3min
Sales by major arms suppliers were boosted last year by the wars in Ukraine and Gaza and tensions in Asia, with marked increases for manufacturers based in Russia and the Middle East, according to a Sipri report published Monday December 2. Sales of arms and military services by the world's 100 largest arms companies totaled $632 billion last year, up 4.2 percent, reports the International Research Institute for Defense. peace of Stockholm (Sipri).
They had declined in 2022 due to the inability of these global giants to meet the increase in demand but many of them managed to restart their production in 2023, according to the report. A sign of this strong surge in demand, these 100 companies, for the first time, all individually achieved a turnover of more than a billion dollars last year. “There has been a marked increase in gun sales in 2023, and this trend is expected to continue in 2024”declared Lorenzo Scarazzato, researcher at the Sipri program on military spending and arms production, quoted in a press release.
Sales of the top 100 global groups “do not yet fully reflect the scale of demand and many companies have launched recruitment campaigns, showing optimism for the future”he adds. Smaller producers have been more effective in meeting this new demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programs in other regions, underlines Sipri. “Many of them specialize in one component or build systems that require a single supply chain”allowing them to react more quickly, Nan Tian, director of the military spending program, explains to AFP.
The world's leading producers, American groups recorded an increase of 2.5% in their sales in 2023 and still represent half of global arms revenues, with 41 American companies appearing among the top 100 in the world. Europe, with 27 groups, only posted an increase of 0.2% in sales last year, which masks a dual reality. Other groups, however, have “saw their turnover increase substantially, driven by demand linked to the war in Ukraine”particularly for munitions, artillery and air defense systems and land systems, writes Sipri.
The figures for Russia, although incomplete, show the effects of an economy largely geared towards war. Sales of the two Russian groups present in the ranking show an increase of 40%, mainly due to the 49% increase in sales of the public conglomerate Rostec, according to Sipri.
