Global arms sales hit record high as nations boost military modernization: Study

Global arms sales reached a new peak in 2024 as governments accelerated military modernization and expanded weapons procurement amid ongoing conflicts and rising geopolitical tensions, according to a Stockholm International Peace Research Institute (SIPRI) study published Monday.

Revenues generated by the world's 100 largest defense companies rose by 5.9% last year to a record $679 billion, marking the strongest collective increase since 2018. SIPRI links the surge primarily to the wars in Ukraine and Gaza, as well as heightened regional security concerns and higher defense spending among major powers.

The US and Europe accounted for most of the growth. US manufacturers posted $334 billion in combined sales, despite continued delays and cost overruns in major programs such as the F-35 fighter jet and the Columbia-class submarine.

In Europe, 23 of 26 companies increased revenue, with overall regional sales climbing 13% to $151 billion. Czech firm Czechoslovak Group recorded the steepest rise globally-up 193%-largely due to supply contracts for Ukraine.

Türkiye added a fifth company to the ranking, with MKE joining ASELSAN, TAI, Baykar and Roketsan. The country recorded an 11% year-on-year increase in annual arms sales, reaching a combined $10.1 billion in revenues.

Russian firms also expanded earnings despite sanctions and labor shortages, with revenues up 23% to $31.2 billion, driven by strong domestic demand.

In contrast, total sales in Asia-Oceania fell 1.2%, pulled down by a sharp decline in Chinese procurement amid corruption investigations. However, Japanese and South Korean companies reported strong double-digit growth, fueled by export demand and regional rearmament.

The Middle East recorded its highest-ever presence in the Top 100, with nine companies generating $31 billion. Israeli manufacturers increased sales despite global criticism of the Gaza war.

The United Arab Emirates' state-owned EDGE Group ranked 37th with $4.7 billion in revenues.