Global arms sales surged to a record €585 billion in 2023, driven by escalating conflicts and geopolitical tensions, according to a new report from the Stockholm International Peace Research Institute (SIPRI). The analysis reveals unprecedented revenue growth for the world’s largest defense companies, signaling a sustained increase in military expenditure.
The SIPRI report underscores a critical shift in the global security landscape, with implications for international relations, economic stability, and the trajectory of ongoing conflicts.The ample rise in arms sales-a 6.8% increase-highlights the growing demand for military equipment fueled by the war in ukraine and broader global instability. This trend is expected to continue impacting defense industry strategies and geopolitical power dynamics for years to come.
Three American companies – Lockheed Martin, RTX, and Northrop Grumman – led the growth, alongside British firm BAE Systems.Collectively, these five giants experienced revenue increases across the board for the first time sence 2018. the top 100 arms-producing companies worldwide saw their arms sales increase.
German companies also demonstrated notable gains. Thyssen-Krupp’s sales rose by 12.3 percent, while Hensoldt saw a 17.9 percent increase.Even Russian firms, Rostec and United Shipbuilding, managed to boost revenues despite international sanctions, indicating a heightened demand to support Russia’s military operations in Ukraine. However, SIPRI researcher Diego Lopes da Silva cautioned that the Russian industry faces a growing shortage of skilled labor, potentially hindering future production and innovation. “That could slow down production and limit innovation,” da Silva stated. “Still, caution is still advised when making predictions about the Russian arms industry, which has proven to be very resilient during the war in ukraine, contrary to expectations.”
Worldwide, companies are increasingly reporting difficulties in securing necessary raw materials. SIPRI has been tracking arms industry revenues since 1989, publishing annual reports alongside analyses of global arms transfers and military expenditure.