Leading companies in the arms industry saw their overall revenues increase by 4.2% in 2023, with big increases for producers based in Russia and the Middle East, according to a new report released Monday.
The report from the Stockholm International Peace Research Institute (SIPRI) reveals that the revenues of the 100 largest arms companies amounted to US$632 billion last year, due to the increase in demand linked to the wars in Ukraine and Gaza.
The institute reported that “smaller producers have been more effective in meeting new demand.”
On the other hand, some large companies such as Lockheed Martin and RTX, based in the United States and involved in complex and long-term contacts, recorded a decline in profits.
The 41 US-based arms companies among the world’s top 100 recorded revenues of US$317 billion, an increase of 2.5% from 2022, according to the report.
As of 2018, the top five global companies in the sector are Lockheed Martin, RTX, Northrop Grumman Corp, Boeing and General Dynamics Corp.
Six Middle East-based arms companies in the world’s top 100 saw their combined revenues increase by 18%, reaching a total of US$19.6 billion.
“With the outbreak of war in Gaza, arms revenues of the three Israel-based companies in the top 100 reached US$13.6 billion, the highest figure ever recorded by Israeli companies in reports of SIPRI,” indicated the Institute.
Revenue growth was slowest in the European arms industry, excluding Russia, in 2023. Revenues totaled US$133 billion, up 0.2%. than in 2022, as most producers were working on older, long-term contracts.
But small European businesses were able to quickly tap into demand linked to Russia’s war against Ukraine.
Russia’s two main arms companies saw their combined revenues increase by 40%, to an estimated US$25.5 billion.
“This increase is almost entirely due to the 49% increase in arms revenues recorded by Rostec, a state holding company that controls many arms producers,” the SIPRI report said.
