As the genocide in Gaza, war in Ukraine and intensifying geopolitical tensions reshape global security priorities, arms production worldwide has entered a phase of rapid expansion reflecting a new era of competitive militarization.

Groundxero Report | Dec 2, 2025

Global arms revenues of the top 100 weapons makers in the world—led by those in the United States—surged to an all-time high of $679 billion in 2024, rising 5.9% in real terms, amid intensifying geopolitical tensions and accelerating military procurement worldwide, according to a report released by the Stockholm International Peace Research Institute (SIPRI). The growing demand for weapons systems was fueled mainly by the war in Ukraine, Israel’s genocidal war on Gaza, heightened US–China rivalry, and major military modernization and expansion programmes across Europe and parts of Asia.

“Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalized on high demand,” said Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production Programme, which has been tracking global arms sales since 1989.

The SIPRI Top 100 list of companies for 2024 shows that 77 of the world’s largest arms companies increased their revenues with 42 posting double-digit growth, underscoring a global boom in rearmament. The United States continued to dominate global arms production. Revenues of the 39 US companies on the list rose to $334 billion, accounting for nearly half of total global arms revenues.

According to the report, the five largest arms companies alone—Lockheed Martin, RTX, Northrup Grumman, BAE Systems, and General Dynamics—accounted for an estimated $215 billion of the total arms sales. Of those five, four are US companies while BAE is based in the United Kingdom. SpaceX, owned by Elon Musk landed in the Top 100 for the first time with its arms revenue more than doubled compared with figures from 2023, reaching $1.8 billion.

European arms manufacturers grew even faster than their American counterparts. Europe’s 26 companies saw 13% growth, with revenues climbing to $151 billion. Germany’s Rheinmetall topped the list with a staggering 47% increase, driven by demand for ammunition and armoured vehicles linked directly to the war in Ukraine. French firms Thales, Safran and Dassault also posted double-digit growth, driven by demand for AI-enabled systems, missile technology and combat aircraft.

17 European companies expanded production capacity in 2024 alone, through acquisitions, new production lines or fresh manufacturing plants. The rearmament push suggests that Europe is entering a prolonged era of high defence spending.

Weapons production surged in Russia also despite sanctions. The combined revenues of only two Russian companies—Rostec and United Shipbuilding Corporation—increased 23% to $31.2 billion, driven by a dramatic ramp-up in domestic wartime production. Russia reportedly produced 1.3 million 152-mm artillery shells in 2024, up from 250,000 in 2022, and tripled production of Iskander missiles.

In a rare reversal, total revenues of China’s eight listed arms manufacturers fell 10% to $88.3 billion—the largest drop for any major arms-producing nation.

India’s three companies in the list grew 8.2%, led by a 24% surge at Bharat Electronics, propelled by domestic orders for radars and electronic warfare systems.

With nine firms in the Top 100 —the region’s highest-ever number—Middle Eastern companies reached $31 billion in arms revenues in 2024.

Fuelled by the ongoing genocidal war on Gaza, Israel’s largest weapons makers also had surging revenue in 2024 as bombs, missiles, and tank shells were fired on the besieged enclave, killing at least 70,000 Palestinian civilians, including children. Revenue of Israel’s three major firms—Elbit Systems, Israel Aerospace Industries, and Rafael—expanded by 16% to $16.2 billion. Elbit Systems pocketed $6.28 billion in profits, followed by Israel Aerospace Industries with $5.19 billion and Rafael Advanced Defense Systems with $4.7 billion.

Despite record revenues, the industry faces mounting pressures from supply bottlenecks and critical-materials shortages, worsened by US-China trade tensions. China’s export controls on gallium, germanium and rare earths have “already present[ed] severe production challenges,” with European and US manufacturers warning of disruptions and rising costs. For example, prices of antimony surged 200% in late 2024 after China slashed exports by 97%.

The picture that emerges from the report is not merely one of rising military spending, but of a deepening militarisation of global political economy. As SIPRI notes, 2024’s record arms revenues  reflect the world entering a new era of competitive militarisation, where states are racing to fortify themselves for a future marked by protracted conflict, disruption of supply chains, and diminishing diplomatic restraint.

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Feature Image: Damage in Gaza Strip during the October 2023 – 02 by WAFA in contract with APAimages, used under Creative Commons Attribution-Share Alike 3.0