6. Arms production and military services

The SIPRI Top 100

The combined arms revenues of the 100 largest arms-producing and military services companies (the SIPRI Top 100) totalled US$679 billion in 2024 (the most recent year for which data is available). This was 5.9 per cent higher than in 2023. The increase reflects the demand for military equipment and services driven by heightened global security concerns, ongoing conflicts and rising military budgets. Seventy-seven of the companies in the Top 100 increased their arms revenues in 2024, including 42 that reported at least double-digit percentage growth. Given the persistence of demand and the size of companies’ backlogs, there are likely to be further increases in global arms revenues in the coming years.

The United States continued to dominate the ranking with 39 companies in the Top 100 for 2024, with total arms revenues of $334 billion (3.8 per cent more than in 2023). China was second with 8 companies in the ranking, with combined arms revenues of $88.3 billion (10 per cent less than in 2023). Due to a lack of available data, only 2 Russian companies were included in the Top 100 for 2024. Their combined arms revenues of $31.2 billion were 23 per cent higher than in 2023.

Supply chain weaponization

The industrial capacity to meet the increased demand for advanced weapon systems is being hampered by the same geopolitical tensions driving the demand. Globalization brought with it complex, international supply chains and cheaper critical materials and components. While concentrated global supply chains can maximize cost-effectiveness, they can also create chokepoint vulnerabilities. Since 2020, for example, China has steadily tightened exports of critical materials and several of the world’s largest arms companies have cited such restrictions as a major risk to their operations.

To minimize their reliance on current sources, states and companies have opted to diversify their suppliers, focusing on strategies to reconfigure global supply chains to increase resilience, reduce risks and align with political or economic allies. But shifting towards greater autarky is a long-term endeavour and not being able to leverage economies of scale means more expensive weapons and reduced purchasing power for military procurement budgets.