Global arms sales have surged to unprecedented levels, with the world’s 100 largest weapons and military services companies generating $679 billion in 2024, the Stockholm International Peace Research Institute (SIPRI) reported on Monday.

The record-breaking figure comes amid conflicts in Gaza and Ukraine, simmering tensions across East Asia, and historically high defense budgets worldwide.

The growth highlights the increasing influence of private arms manufacturers on modern warfare and the scale at which geopolitical crises are fueling demand for advanced military equipment.

The report illustrates the role of corporate defense suppliers in shaping outcomes on the battlefield. Rising arms revenues suggest that wars are becoming increasingly commodified, with private companies profiting from both domestic defense budgets and international contracts.

Also, the Middle East is emerging as a significant arms-producing region, signaling a diversification of global military production.

The 100 largest arms companies worldwide collectively saw revenues rise 5.9 percent in 2024, reflecting the impact of ongoing conflicts and heightened global military spending. In the U.S., Lockheed Martin, Northrop Grumman, and General Dynamics led the list, driving a 3.8 percent increase in American arms revenues to $334 billion.

Across Europe, 23 of the 26 top firms reported gains, with total revenues climbing 13 percent to $151 billion. Much of this growth is tied to the war in Ukraine. Czech manufacturer Czechoslovak Group surged 193 percent to $3.6 billion through artillery shell sales, while Ukraine’s JSC Ukrainian Defense Industry increased revenues by 41 percent to $3 billion as the country faces relentless Russian offensives.

European firms have ramped up production to support Kyiv, though securing critical materials remains a challenge amid China’s tightening export controls. On the other side, Russian firms Rostec and United Shipbuilding Corporation also boosted revenues by 23 percent to $31.2 billion despite Western sanctions, highlighting how the conflict in Ukraine is driving arms spending on both sides of the battlefield.

Asia-Pacific revenues totaled $130 billion despite a 1.2 percent regional decline. China’s eight top firms saw combined revenue drops, notably a 31 percent fall for NORINCO because of postponed or canceled contracts amid corruption allegations.

Japanese and South Korean companies benefited from rising European and domestic demand. Japanese companies increased revenues by 40 percent to $13.3 billion, and South Korean producers saw a 31 percent jump to $14.1 billion. Hanwha Group, South Korea’s largest defense company, reported a 42 percent increase, over half from exports.

Nine Middle Eastern companies appeared in the top 100, collectively generating $31 billion in revenues, a 14 percent increase. Israeli firms saw a 16 percent rise to $16.2 billion amid the ongoing conflict in Gaza, with Rafael Advanced Defense Systems benefiting from higher demand for air defense systems following Iranian missile and drone attacks. Turkey recorded a record five companies, with Baykar earning $1.9 billion, 95 percent from exports.

Billionaire Elon Musk’s SpaceX also appeared in the list for the first time, with its arms revenues more than doubling from 2023 to reach $1.8 billion, reflecting its growing role as a military supplier through satellite launches and related services.

Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme: “A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or canceled in 2024. This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialize.”

Zubaida Karim, Researcher with the SIPRI Military Expenditure and Arms Production Programme: “The growing backlash over Israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons.”

Global arms revenues are expected to remain elevated in 2025 as the conflicts in Ukraine and Gaza continue to rumble on and tensions persist across East Asia. Firms are likely to expand investments in drones, air defense systems, and other high-tech weaponry, while supply chain disruptions, corruption investigations, and sanctions continue to shape competition. Emerging Middle Eastern producers could play an increasingly significant role, particularly in unmanned aerial systems and counter-drone technologies.