SIPRI Report Reveals Record-Breaking Defense Sector Revenues for 2024

The Stockholm International Peace Research Institute (SIPRI) released its findings in December 2025, highlighting a substantial financial surge within the global defense industry throughout 2024. The combined revenue generated by the world's top one hundred arms manufacturers and military service providers reached an unprecedented $679 billion. This figure represents a 5.9% increase over the preceding year's performance.

This latest tally marks the highest level recorded in SIPRI's comprehensive tracking history, which dates back to 1989. The data clearly indicates a direct correlation between escalating global geopolitical tensions and the profitability of the military-industrial complex worldwide.

Several key factors fueled this robust growth. Ongoing military conflicts, notably the war in Ukraine and the heightened tensions in the Gaza sector, played a significant role. Furthermore, a general uptick in defense spending across numerous nations contributed substantially. For the first time since 2018, all five of the world's largest defense conglomerates reported simultaneous revenue increases.

The United States maintained its dominant global position, accounting for nearly half of the total worldwide volume. Thirty-nine American firms featured in the Top-100 generated revenues amounting to $334 billion, marking a 3.8% year-over-year climb. Industry leaders like Lockheed Martin, RTX, and Northrop Grumman secured the top three spots globally. Despite this success, these American titans, including Lockheed Martin, continue to grapple with delays and cost overruns affecting crucial programs, such as the F-35 fighter jet and the Columbia-class submarines.

In contrast, the European defense sector exhibited more vigorous expansion. The aggregate revenue for 26 European companies, excluding those based in Russia, jumped by 13%, reaching $151 billion. The Czech firm Czechoslovak Group experienced the most dramatic percentage leap, boosting its revenue by an astonishing 193% to hit $3.6 billion. This surge is directly attributable to fulfilling substantial artillery shell orders destined for Ukraine under the European initiative. However, experts caution that Europe risks becoming overly reliant on Chinese supplies of critical minerals necessary to sustain these elevated rates of rearmament.

The regional breakdown reveals a noticeable imbalance. While the US and Europe saw their figures climb, the Asia-Pacific region registered a slight contraction of 1.2%. This downturn was primarily driven by difficulties within China's defense industry, where revenues fell by 10%. According to SIPRI expert Nan Tian, this decline deepens the uncertainty surrounding the timeline for modernizing China's armed forces.

Russian entities, specifically Rostec and the United Shipbuilding Corporation (USC), collectively increased their revenue by 23%, totaling $31.2 billion. SIPRI assesses that this growth fully offset losses from reduced exports, thanks to a sharp rise in domestic demand. Analysts point out, however, that the Russian defense sector is currently contending with a shortage of skilled labor, a situation that could potentially impede production rates.

The inclusion of Elon Musk's SpaceX in the top one hundred list, securing the 77th position with a revenue increase of 103% to $1.8 billion, signals the growing importance of commercial space capabilities within national defense structures. SIPRI researcher Zubaida Karim also observed that international criticism directed at Israel's actions in Gaza did not significantly dampen interest in the country's defense firms, whose revenues climbed by 16%. Overall, the current state of global arms trade appears constrained primarily by the manufacturing capacities of exporters and the financial means of buyers, suggesting that the prevailing trend is set to continue.