The global arms industry experienced a significant revenue surge in 2023, with sales reaching $632 billion—a 4.2% increase from the previous year—according to a report by the Stockholm International Peace Research Institute (SIPRI).

The rise was largely driven by ongoing conflicts, such as the war in Ukraine and the Gaza genocide, as well as escalating geopolitical tensions in East Asia, fueling demand for military hardware worldwide.

US companies benefiting most from bloodshed 

The United States maintained its dominant position in the global arms market, with 41 companies featured in SIPRI's Top 100 arms manufacturers.

Together, these firms accounted for half of the total revenue, generating $317 billion in 2023—a 2.5% increase compared to 2022.

Of the US-based companies, 30 reported year-on-year revenue growth. The top five arms producers globally—Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics—are all American, and their combined revenues made up 31% of the total arms sales from the Top 100. However, not all companies saw equal gains.

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Northrop Grumman led the growth, with a 5.8% rise in arms revenues, reaching $35.6 billion. This was largely driven by heightened demand for ammunition for Ukraine and the US military's focus on upgrading missile defense systems and modernizing its nuclear arsenal.

Northrop Grumman's Space Systems division saw a particularly strong performance, recording a 9.2% revenue increase.

Lockheed Martin and RTX, despite their status as the largest arms producers, faced slight revenue declines in real terms due to ongoing supply chain disruptions, particularly in the production of solid-fuel rocket motors, a critical missile component.

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Staggering capabilities

The SIPRI report noted that US companies, while benefiting from high demand, faced logistical hurdles, including supply chain issues in sectors like aeronautics and missile defense.

These challenges impacted even industry leaders like Lockheed Martin and RTX. Nonetheless, the robust government focus on military modernization and strong international demand kept the US industry resilient.

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With continued conflicts and geopolitical tensions, experts predict the upward trend in arms sales will persist.

Lorenzo Scarazzato, a SIPRI researcher, stated, "The rise in arms revenues in 2023 is likely to continue in 2024," citing ongoing recruitment drives and strategic investments by leading US manufacturers.