Analysis of the record revenues of the 100 largest arms companies in 2023, boosted by regional conflicts and tensions.
In 2023, the 100 largest arms companies generated $632 billion (around €594 billion) in revenues, up 4.2% on 2022. This growth is due to conflicts in Ukraine and Gaza, as well as tensions in Asia. American companies dominate with $317 billion in revenues, accounting for 50% of the total. Russian and Asian companies also posted significant increases. This context reflects an increase in military orders and an intensification of global production.
Global arms industry revenues in 2023
In 2023, the 100 largest arms companies recorded revenues of $632 billion (around €594 billion), a real increase of 4.2% on 2022. This increase is attributed to several factors:
- Armed conflicts in Ukraine and Gaza.
- Growing tensions in East Asia, particularly around Taiwan.
- Rearmament programs in Europe and other regions.
Medium-sized companies have responded better to this increased demand, rapidly adapting their production. For example, Rheinmetall in Germany increased its production of 155 mm-caliber ammunition and delivered Leopard 2 tanks, responding to Ukraine-related orders.
Performance of US companies
The 41 US companies on the SIPRI list generated $317 billion (€298 billion), accounting for 50% of total revenues. However, giants such as Lockheed Martin and RTX experienced revenue declines due to complex supply chain issues, particularly in the aerospace and missile sectors.
Less dominant US companies offset these declines, recording a 2.5% increase over 2022. Since 2018, the world’s top five companies have all been based in the USA, testifying to this country’s continuing dominance in the arms industry.
Europe: slow but strategic growth
European companies (excluding Russia) recorded revenues of $133 billion (€125 billion), up a modest 0.2%. There are several reasons for this stagnation:
- Ongoing contracts based on past orders.
- Longer production times for complex weapons systems.
However, some countries, such as Germany, Sweden and Poland, recorded significant increases thanks to Ukraine-related orders. Germany, for example, stepped up its exports via arms exchange programs, while at the same time increasing its production capacity.
Russia: a rise fuelled by the conflict in Ukraine
The two Russian companies in the Top 100 saw their combined revenues rise by 40%, to $25.5 billion (€24 billion). Rostec, a state-owned conglomerate, recorded a 49% increase, mainly thanks to increased production of tanks, ammunition and missiles.
However, the lack of transparency in official data limits the accuracy of analysis, although Russian military production has clearly increased.
Growth in Asia and Oceania
Asian companies recorded combined revenues of $136 billion (€128 billion), an increase of 5.7%. South Korea and Japan stand out:
- South Korea recorded a 39% increase in revenues, reaching $11 billion (€10.3 billion).
- Japan saw a 35% increase, totaling $10 billion (€9.4 billion).
These increases are mainly due to policies of military reinforcement in the face of heightened regional threats, as well as increased exports, notably to Europe.
The Middle East and its record figures
The six Middle Eastern companies in the Top 100 generated $19.6 billion (€18.4 billion), an increase of 18%. Among them:
- Israel, with record revenues of $13.6 billion (€12.8 billion).
- Turkey, with an increase of 24% to $6 billion (€5.6 billion).
The war in Gaza and exports linked to the Ukrainian conflict largely explain these figures.
Strategic and economic consequences
Rising revenues for the arms industry reflect intensifying global geopolitical tensions. These increases have several impacts:
- Strengthening global military capabilities: countries such as Poland and Japan are increasing their stockpiles of weapons to meet potential threats.
- Regional economic impact: the revenues generated promote the growth of local industries, but also increase the risk of military escalation.
- Reconfiguration of alliances: Programs such as the European Arms Exchange strengthen ties between allied countries.
War Wings Daily is an independant magazine.