Global Arms Industry Booms Amid Rising Conflicts and Military Spending

A SIPRI report reveals a 5.9% revenue rise for top arms producers, driven by conflicts in Ukraine and Gaza. Companies in Europe and the U.S. led the growth, while challenges like supply chain issues and budget overruns persist. Conversely, Asia saw a decline due to Chinese industry setbacks.

The world's largest weapons manufacturers experienced a 5.9% boost in revenue from arms and military services sales last year, driven mainly by ongoing conflicts in Ukraine and Gaza, as well as increasing military expenditures, a SIPRI report has disclosed.

The revenues from the 100 leading arms makers soared to $679 billion in 2024, marking the highest level recorded by SIPRI. While European and U.S. firms mostly contributed to this uplift, there was a slight dip in Asia and Oceania due to issues in China's arms industry.

European arms revenues rose by 13% to $151 billion, paralleling heightened military spending linked to the Ukraine conflict. However, China faced a 1.2% revenue drop attributed to corruption allegations. Meanwhile, Israeli companies saw a 16% revenue surge, unaffected by Gaza conflict backlash.

(With inputs from agencies.)