On December 3, 2024, a report from the Stockholm International Peace Research Institute (SIPRI) revealed that the total revenue of the world's top 100 arms producers reached $632 billion in 2023, marking a 4.2% increase from the previous year. This growth is largely attributed to ongoing conflicts in Ukraine and Gaza.
The Russian arms industry experienced the most significant growth, with revenues increasing by 40%. Following initial expectations of a quick victory in Ukraine, the Kremlin ramped up production of missiles, tactical aircraft, and drones to compensate for battlefield losses.
In contrast, some European nations, such as France and Italy, reported declines in arms revenue. However, German arms manufacturers collectively saw a 7.5% increase, with Rheinmetall and Diehl among the top performers.
In Asia, South Korean and Japanese arms manufacturers also reported substantial revenue increases, responding to rising tensions in the region. Japan has notably expanded its defense arsenal to levels not seen since World War II.
Conversely, China's arms industry saw only a 0.7% increase in revenue, the lowest since 2019, despite ongoing military modernization efforts by the Chinese government.
The Middle East saw a significant rise in arms sales, with Israeli manufacturers achieving record revenues following the escalation of conflict in Gaza, totaling $13.6 billion.