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In 2023, revenues from the sale of weapons and military services of the 100 largest companies will increase to $632 billion. In real terms, this is 4,2% more than in 2022.
This is evidenced by a study by the Stockholm International Peace Research Institute (SIPRI), reports Espresso.
An increase in revenues from the sale of weapons was recorded in all regions, but a sharp increase was observed in companies based in the Russian Federation and the Middle East.
"In general, smaller producers have been more effective in responding to new demand related to the wars in Gaza and Ukraine, rising tensions in East Asia and rearmament programs elsewhere," the report said.
It is noted that production was increased last year due to demand.
“In 2023, there was a noticeable increase in revenue from weapons, and this is likely to continue in 2024. Arms revenues of the top 100 manufacturers still did not fully reflect the scale of demand, and many companies began hiring, suggesting an optimistic mood about future sales," explained Lorenzo Scarazzato, a researcher at SIPRI's Military Spending and Arms Production Program.
Revenues of American arms manufacturers
In the list of one hundred companies, 41 of them are located in the United States - they received a total revenue of $317 billion last year, which is 2,5% more than in 2022.
Also last year, 30 of the 41 US arms manufacturers increased their revenues.
Incomes of European arms manufacturers
According to the results of the study, the revenues of companies in Europe have the lowest growth than in any other region of the world. Last year, 27 industries based in the region (excluding the Russian Federation) had $133 billion in revenue, which exceeded the result of 2022 by only 0,2%.
However, it noted that Europe's arms companies, which produce complex weapons systems, had mostly complex contracts in 2023, so revenues during the year do not reflect the influx of orders.
“At the same time, a number of other European manufacturers saw their arms revenues rise significantly, driven by demand related to the war in Ukraine, particularly for ammunition, artillery and air defense and ground systems. It is noteworthy that companies in Germany, Sweden, Ukraine, Poland, Norway and the Czech Republic were able to take advantage of this demand. For example, Germany's Rheinmetall has increased its production capacity for 155 mm ammunition, and its revenues have been boosted by the supply of its Leopard tanks,” adds SIPRI.
Incomes of Russian arms manufacturers
Two Russian companies on the SIPRI list recorded a 40% increase in revenue, reaching about $25,5 billion. It is noted that this result is mostly due to the increase in the income of the Rostec state corporation, which controls 7 arms manufacturers - they were also included in the list, but the institute could not obtain their individual data.
Revenues of arms manufacturers in the Middle East
The six such manufacturers that made it to the SIPRI list saw revenues increase by 2023% to $18 billion in 19,6.
At the same time, the revenues of Israeli arms manufacturers increased to $13,6 billion after the start of the war in Gaza. It is emphasized that this statistic is the highest for the region.
Turkey's companies increased revenues by 24% to $6 billion, "taking advantage of exports caused by the war in Ukraine and the Turkish government's continued drive for self-sufficiency in arms production."
SIPRI's Diego López da Silva added that revenue growth will continue, adding that Israeli manufacturers are booking many more orders "as the war in Gaza rages and spreads."
