Revenues of the world’s largest arms manufacturers set a new record
1 December 2025 09:32
By the end of 2024, the revenue of the world’s 100 largest defense companies from arms sales and military services increased by 5.9%, reaching a record $679 billion, according to a new report by the Stockholm International Peace Research Institute (SIPRI), published on Monday, December 1, "Komersant Ukrainian" reports citing DW.
In total, since 2015, military revenues of SIPRI-rated companies have increased by 26%. The authors of the study attribute the growth to the wars of Russia against Ukraine and Israel against the Palestinian radical Islamist movement Hamas, which is recognized as a terrorist organization in the European Union, the United Kingdom, and the United States.
Although the main contribution to global growth came from manufacturers in Europe and the United States, the trend was recorded in all regions, and the revenue of Russian companies in the ranking grew at double-digit rates despite the sanctions.
“Last year, global arms revenues reached the highest level in the history of SIPRI’s observations: manufacturers were in high demand,” says Lorenzo Scarazzato, a researcher at the Military Expenditures and Arms Production Program.
Russia offset exports with domestic demand
Only two Russian arms manufacturers have been included in the SIPRI rankings for the last three years due to lack of data: Rostec State Corporation is ranked seventh, and the United Shipbuilding Corporation (USC) is ranked 41st. At the same time, SIPRI analysts now include seven companies in Rostec, which were previously taken into account separately: “High-Precision Complexes, Concern Radioelectronic Technologies, Rosel, Russian Helicopters, United Aircraft Corporation, United Engine Corporation, and Ural.
In 2024, Rostec and UIC’s losses from declining exports were fully offset by domestic demand, SIPRI writes. Their total revenue grew by 23% to $31.2 billion: Rostec’s by 26% to $27.1 billion, and UOP’s by 6.5% to $4.1 billion.
Since the beginning of the invasion of Ukraine in 2022, Russian arms production has remained high, especially in the segments of ammunition, armored vehicles, artillery systems, missiles, and unmanned aerial vehicles (UAVs), analysts say. For example, the production of 152-mm artillery shells more than quadrupled from 250,000 in 2022 to 1.3 million in 2024. Production of Iskander missiles increased from 250 in 2023 to 700 in 2024.
Russian production is more resilient than expected
Despite this growth, SIPRI analysts say that in sectors such as aircraft construction, Russia has faced supply shortages due to sanctions, as production continues to be heavily dependent on foreign components. Another challenge, the authors of the report said, is the personnel shortage that persists despite large-scale recruitment campaigns.
“The Russian military industry does not have a sufficient number of skilled workers to support the projected production rates required to achieve Russia’s military goals,” the report’s authors state.
However, the expectations that the Russian economy would not cope because of the war and sanctions have not been realized, Nan Tian, one of the authors of the SIPRI report, tells DW.
“Russia is in a worse position than it would have been without the invasion, but it has proved to be more resilient than many thought,” he explains.
“Industry does not have enough skilled labor to maintain the projected production rates needed to meet Russia’s military goals,” the report’s authors state.
According to the report, Moscow has completely restructured its priorities, and over the past three years, Russia’s economy has become a military economy. The scale of militarization is so great that even in the event of a lasting peace, it will be extremely difficult for the Kremlin to return the economy to a non-military state, the analyst predicts.
The only Ukrainian company in the top 100 was the state-owned Ukrainian Defense Industry (52nd place), which increased its arms sales revenue by 41% to $3 billion.
German companies among the world’s leaders
German arms manufacturers showed one of the most significant revenue growths in 2024, up 36%. This figure grew faster only in Japan (40%). Four German companies entered the world’s top 100, with Rheinmetall leading the way – with revenue from military sales of €8.2 billion (plus 47% over the year), it ranked 20th in the overall list. The concern also became one of the world’s leaders in terms of revenue growth, second only to the Czech Czechoslovak Group (plus 193%) and the American SpaceX (103%) outside Germany.
