Global defense companies pulled in an unprecedented $679 billion in 2024, driven largely by the wars in Ukraine and Gaza, according to new data from the Stockholm International Peace Research Institute (SIPRI). Europe recorded the fastest growth in demand, US manufacturers maintained their lead, and Israeli defense exports remained strong despite political backlash.

Why Are Global Arms Revenues at an All-Time High?

The world’s top 100 defense companies generated $679 billion in 2024, the highest div SIPRI has ever recorded. The primary driver: governments scrambling to secure weapons and refill rapidly shrinking stockpiles, especially due to the conflicts in Ukraine and Gaza.

This surge pushed global arms revenue up nearly 6 percent in a single year and almost 26 percent since 2015, a striking rise for an industry that typically grows in slow, steady increments.

Lorenzo Scarazzato, a researcher with SIPRI’s Military Expenditure and Arms Production Programme, summed it up simply: manufacturers “capitalized on high demand.

Where Is the Demand Coming From?

Europe Is Driving the Spike

SIPRI researchers say the demand boom came “mostly from Europe,” a region reshaping its security posture at a pace not seen since the Cold War.

Why Europe?

• The war in Ukraine continues to drain ammunition, missiles, and armored vehicles.
• European states are responding to what SIPRI calls a heightened “threat perception of Russia.”
• Even countries not supplying Ukraine are expanding and modernizing their militaries, creating a secondary wave of demand.

This uptick isn’t just about supporting Kyiv. It’s about preparing for a future where European stockpiles must be deeper, replenished faster, and more modern than before.

Other Regions Saw Growth: Except Asia-Pacific

SIPRI notes that demand increased everywhere except Asia and Oceania, where sales dipped slightly.
China’s anticorruption campaign in military procurement played a key role in the slowdown.

That decline was offset partly by Japanese and South Korean manufacturers, which enjoyed rising orders, including from European buyers who needed quick deliveries and diversified suppliers.

Which Countries and Companies Benefited the Most?

The US Still Dominates Global Weapons Manufacturing

The United States remains the world’s defense-production powerhouse, home to 39 of the top 100 arms companies. These include:

• Lockheed Martin
• RTX
• Northrop Grumman

Together, US companies generated $334 billion in sales, or almost half of the world’s total defense revenue.

This dominance is unlikely to change soon. American manufacturers benefit from:

• long-term multibillion-dollar Pentagon contracts,
• deep R&D pipelines,
• and export relationships that span decades.

Europe Posts the Fastest Growth

Europe’s defense sector expanded 13 percent, reaching $151 billion in revenue. One standout example: Czechoslovak Group, whose artillery ammunition supplies to Ukraine triggered a nearly 200 percent jump in sales.

European governments are not just upgrading old equipment; they are rethinking their entire procurement strategy. Many are turning to diversified suppliers after witnessing how dependent some nations were on single-country procurement before 2022.

Russia’s Defense Industry Defies Sanctions

Despite sanctions and limited access to high-tech components, Russia’s defense giants—including Rostec and the United Shipbuilding Corporation—posted a 23 percent increase in revenue.

This reflects:

• Moscow’s shifting domestic priorities,
• its growing reliance on self-sufficiency,
• and wartime production that continues at a rapid pace.

Russian companies remain largely insulated from global market swings, as most output is consumed internally.

The Middle East Remains a Steady Market

Middle Eastern sales reached $31 billion, with Israel’s defense industry continuing to be a top performer.

Despite a “growing backlash over Israel’s actions in Gaza,” SIPRI researcher Zubaida Karim notes that demand for Israeli weapons remains high. Buyers appear to be prioritizing battlefield performance, which Israeli systems are widely known for, over political considerations.

What Does This Surge Mean for the Future of Global Security?

Short-Term: Persistent Demand

Even if the wars in Ukraine and Gaza de-escalate tomorrow, defense spending won’t fall quickly. Countries have learned how quickly stockpiles can be drained. Many are reevaluating:

• how much artillery ammunition they need,
• how fast manufacturers can deliver,
• and whether domestic production is sufficient.

Expect governments to ink longer-term contracts and invest in local manufacturing to avoid supply chain vulnerabilities exposed during the past two years.

Long-Term: A More Fragmented Global Defense Market

The rise of Czech, South Korean, and Turkish defense manufacturers signals a structural shift. The US remains dominant, but many countries are betting on medium-sized suppliers who can deliver faster and cheaper.

A decade from now, the global arms market may look less like a US–Russia–Europe triangle and more like a multipolar landscape with new power centers emerging.

Why This Data Matters Now

Defense spending used to rise in predictable cycles. Not anymore. The 2024 numbers show how quickly the global security environment can change—and how fast governments move when they think their borders are at risk.

For readers following geopolitical trends, this report is a must-watch indicator. It reflects:

• The real-world consequences of ongoing wars.
• The growing militarization of Europe.
• The resilience—and sometimes growth, of defense sectors facing sanctions or criticism.

SIPRI’s next annual update will be one of the most anticipated yet. And if current conflicts persist, the industry may be on track for another record.