Global arms sales soar as wars escalate in Ukraine and Gaza
- Sales by the world’s top 100 arms companies reached $632 billion in 2023.
- US companies accounted for half of this revenue, despite facing challenges.
- This trend of increasing demand for arms is expected to continue into 2024.
In 2023, global arms sales reached a staggering $632 billion, marking a 4.2 percent increase from the previous year. This surge is attributed to ongoing conflicts in Ukraine and Gaza, along with rising tensions in East Asia. Major arms manufacturers like Lockheed Martin and RTX experienced slight revenue declines, impacted by ongoing supply chain challenges, while smaller companies capitalized on the increased demand linked to these conflicts. The report from the Stockholm International Peace Research Institute (SIPRI) highlighted that for the first time, all companies tracked surpassed $1 billion in sales, reflecting the growing global demand for military equipment and services. The report indicated that US companies, which account for half of global arms revenues, reported an increase in sales by 2.5 percent despite some larger firms struggling. Conversely, Russian arms manufacturers showed substantial growth, with Rostec's sales rising by 49 percent amid an economy increasingly geared towards military production. European arms makers, while seeing only a minor overall increase in sales, are expected to see further growth as they address increased demand from the war in Ukraine. In the Middle East, arms manufacturers recorded an 18 percent boost in sales, benefiting from both the war in Ukraine and the Israel-Hamas conflict that intensified in October 2023. Israeli firms specifically recorded record sales, while Turkish arms producers noted significant growth fueled by domestic defence initiatives and conflicts in adjacent regions. The situation in Asia was marked by pronounced rearmament, notably among South Korean and Japanese manufacturers, reflecting a regional trend towards strengthening military capabilities. Overall, this report not only reflects the present state of global military production but also indicates that the demand for arms and military services is expected to persist into 2024 as tensions continue in various regions. Analysts, including Lorenzo Scarazzato from SIPRI, suggest that the increase in recruitment efforts among arms manufacturers signals optimism for future sales amidst ongoing global conflicts.