People continue to die in wars and conflicts, while arms manufacturing companies make huge profits; SIPRI’s shocking report

For the first time, nine of the top 100 arms companies are from the Middle East.

New Delhi: The world’s 100 largest arms-producing companies have become rich. Revenue from arms and military equipment sales increased by 5.9 percent last year. This data was provided by a report released on Monday, December 1, by the Stockholm International Peace Research Institute (SIPRI). It stated that this surge was driven by the wars in Ukraine and Gaza, as well as global and regional geopolitical tensions.

Indian companies

The report stated that the total revenue from military equipment for the three Indian companies on the list increased by 8.2 percent to US$7.5 billion, driven by domestic demand. SIPRI, a Sweden-based global think tank, also shared a web link listing the world’s top 100 arms and military equipment manufacturers in 2024. The Indian companies included in this list are Hindustan Aeronautics (ranked 44th), Bharat Electronics (ranked 58th), and Mazagon Dock Shipbuilders (ranked 91st).

Top 5 companies

According to SIPRI data, revenue from arms and military equipment sales by the 100 largest arms producing companies is expected to rise 5.9 percent to a record US$679 billion in 2024. The wars in Ukraine and Gaza, global and regional geopolitical tensions, and steadily rising military spending fueled demand. This led to a sharp increase in global arms sales revenue last year. According to the SIPRI report, all five largest arms companies reported increases in their arms revenue for the first time since 2018. The top five companies on the list are Lockheed Martin Corp. (US), RTX (US), Northrop Grumman Corp. (US), BAE Systems (UK), and General Dynamics Corp. (US).

Slight Decline in Chinese Arms Industry

The bulk of global growth was driven by companies based in Europe and the United States, but all regions in the top 100 recorded year-on-year increases. The only exception was Asia and Oceania, where problems in the Chinese arms industry led to a slight decline. Of the 39 US companies in the top 100, 30 recorded growth. These include Lockheed Martin, Northrop Grumman, and General Dynamics. Their total revenue increased by 3.8 percent to US$334 billion. SIPRI noted that delays and budget overruns in the production of key US-led military equipment, including the F-35 fighter aircraft, are impacting development and production.

Three Israeli arms companies in the ranking

For the first time, nine of the top 100 arms companies are from the Middle East, with a total revenue of US$31 billion. Arms revenue in this region increased by 14 percent. The statement said that the combined arms revenue of the three Israeli arms companies included in the ranking increased 16 percent to US$16.2 billion. Additionally, US company SpaceX has entered SIPRI’s top 100 for the first time, as its revenue from weapons sales more than doubled to US$1.8 billion by 2023.