Revenues from sales of arms and military services by the 100 largest weapons-producing companies worldwide rose by 5.9 per cent last year, with demand boosted by the wars in Ukraine and Gaza, and global and regional geopolitical tensions, according to a global report released on Monday.
The combined arms revenues of the three Indian companies in this list increased by 8.2 per cent to USD 7.5 billion on the back of domestic orders, says the report by the Stockholm International Peace Research Institute (SIPRI).
The Sweden-based global think-tank, in a statement, also shared a link that carried the list of "top 100 arms-producing and military services companies" in the world in 2024.
The Indian firms which figure in it are- Hindustan Aeronautics (at 44th spot), Bharat Electronics (58th), Mazagon Dock Shipbuilders (91st).
"Revenues from sales of arms and military services by the 100 largest arms-producing companies rose by 5.9 per cent in 2024, reaching a record USD 679 billion, according to new data released today by the Stockholm International Peace Research Institute (SIPRI)," the statement said.
Global arms revenues rose sharply last year, as demand was "boosted by the wars in Ukraine and Gaza, global and regional geopolitical tensions, and ever-higher military expenditure".
For the first time since 2018, all five of the largest arms companies increased their arms revenues, SIPRI reported.
The top five companies in the list in that order are Lockheed Martin Corp. (the US), RTX (the US), Northrop Grumman Corp. (the US), BAE Systems (the UK) and General Dynamics Corp. (the US).
"Although the bulk of the global rise was due to companies based in Europe and the United States, there were year-on-year increases in all of the world regions featured in the top 100. The only exception was Asia and Oceania, where issues within the Chinese arms industry drove down the regional total," it said.
In 2024, the combined arms revenues of US arms companies in the top 100 grew by 3.8 per cent to reach USD 334 billion, with 30 out of the 39 US companies in the ranking increasing their arms revenues. These included major arms producers such as Lockheed Martin, Northrop Grumman and General Dynamics, the statement said.
"However, widespread delays and budget overruns continue to plague development and production in key US-led programmes such as the F-35 combat aircraft, the Columbia-class submarine and the Sentinel intercontinental ballistic missile (ICBM). Several of the USA's largest arms producers are affected by overruns, raising uncertainty about when major new weapon systems and upgrades to existing ones can be delivered and deployed," it added.
The surge in revenues and new orders prompted many arms companies to expand production lines, enlarge facilities, establish new subsidiaries or conduct acquisitions, the think-tank said.
"Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalised on high demand," Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Programme, was quoted as saying in the statement.
"Although companies have been building their production capacity, they still face a range of challenges that could affect costs and delivery schedules," Scarazzato said.
Of the 26 arms companies in the top 100 based in Europe (excluding Russia), 23 recorded increasing arms revenues.
"Their aggregate arms revenues grew by 13 per cent to USD 151 billion. This increase was tied to demand stemming from the war in Ukraine and the perceived threat from Russia," it said.
Besides, two Russian arms companies in the list, Rostec and United Shipbuilding Corporation, increased their combined arms revenues by 23 per cent to USD 31.2 billion, despite international sanctions that led to a shortage of components. Domestic demand was enough to more than offset the revenues lost due to falling arms exports, SIPRI said.
For the first time, nine of the top 100 arms companies were based in the Middle East, with combined arms revenues of USD 31.0 billion. Arms revenues in the region grew by 14 per cent. The three Israeli arms companies in the ranking increased their combined arms revenues by 16 per cent to USD 16.2 billion, the statement said.
Also, US company SpaceX appeared in the SIPRI top 100 for the first time, after its arms revenues more than doubled compared with 2023, to reach USD 1.8 billion, it said.
SIPRI said, in its statement, 'arms revenues' refer to revenues generated from the sales of military goods and services to military customers domestically and abroad.
"This is the first of three major data launches in the lead-up to the release of SIPRI's flagship publication in mid-2026, the annual SIPRI Yearbook. Ahead of this, SIPRI will release its international arms transfers data (details of all international transfers of major arms in 2025) as well as its world military expenditure data (comprehensive information on global, regional and national trends in military spending in 2025)," it said.
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