Elon Musk's SpaceX appears for the first time among the highest-earning arms manufacturers

BarcelonaWhile The wars in Gaza and Ukraine dragged the world to the historic peak of armed conflicts since World War IIMeanwhile, someone on the other side of the planet was rubbing their hands together: arms manufacturers. In 2024, the top 100 arms-producing companies achieved record revenues of $679 billion; an unprecedented figure that is almost 6% higher than the previous year, according to data published this Monday by the Stockholm International Peace Research Institute (SIPRI).

"Last year, global arms revenues reached the highest level ever recorded by SIPRI, as producers capitalized on very high demand," says Lorenzo Scarazzato, a researcher with SIPRI's Military Expenditure and Arms Production Programme. The bulk of the increase has been concentrated in companies based in Europe and the United States, but revenues have risen on every continent except Asia and Oceania, where problems in the Chinese arms industry have caused a slight decline. Of the top five companies—all of which have increased their revenue for the first time since 2018—four are American. And, for the first time, SpaceX, the American company owned by Elon Musk, has entered the top 100, having doubled its arms revenue compared to 2013, reaching $1.8 billion. The company's entry is further evidence of the growing importance of telecommunications in this sector. The rise of Donald Trump on the international stage and the shift in European defense policy have played a significant role: 30 of the 39 American companies in the top 100 registered increases, while 23 of the 26 European arms companies listed have seen profit growth. Their combined revenue increased by 13% to $151 billion, driven by demand stemming from the war in Ukraine and the perceived threat from Russia. The Czechoslovak Group saw the largest percentage increase in arms revenue of any company in the top 100 in 2024: a 193% jump to $3.6 billion. The company attributes most of its revenue to Ukraine, having benefited from the Czech Munitions Initiative, a Czech government-led project to supply Ukraine with artillery shells.

Supply problems

European states' investment in armaments has swelled the gears of the arms industry, but it hasn't prevented structural problems stemming from supply chains, which have been complicated by geopolitical frictions with Russia and China. "Access to materials could become an increasing challenge. In particular, dependence on critical minerals will likely complicate European rearmament plans," warned Jade Guiberteau Ricard, a researcher with SIPRI's Military Expenditure and Arms Production Programme, in a statement. For example, the trans-European company Airbus and the French firm Safran, which obtained half of their titanium supply from Russia until 2022, have had to find new suppliers; while the French company Thales and the German company Rheinmetall have had to restructure their supply chains following Chinese restrictions on the export of critical minerals.

Despite sanctions imposed by the European bloc, the two Russian companies on the list, Rostec and United Shipbuilding Corporation, increased their revenue by 23%, to a total of $31.2 billion. According to SIPRI, domestic demand was more than enough to offset the drop in arms exports, although Vladimir Putin's regime faces a severe shortage of skilled labor.

As for the Middle East, the boycott of Israel for the massacre of civilians in Gaza "appears to have had little impact on interest in Israeli weapons," according to SIPRI researcher Zubaida Karim. In fact, the three Israeli companies on the ranking grew by 16% and generated $16.2 billion in revenue.