As global tensions intensify, the world's arms industry quietly soared to nearly $600 billion in revenue last year, marking a staggering 19% surge that signals a new and profoundly profitable era of conflict-driven commerce.
Key Takeaways
- The global arms industry revenue reached $592 billion in 2021
- Top 100 arms companies' arms sales totaled $592 billion in 2021, up 19% from 2020
- US arms industry sales accounted for 51% of global top 100 in 2021
- Lockheed Martin is the world's largest arms producer with $60.8B revenue in 2022
- RTX ranked 2nd with $40.6B defense revenue in 2022
- Northrop Grumman 3rd at $32.3B in 2022
- Global arms exports grew 14% 2018-2022 vs prior period
- US share of global arms exports 40% in 2018-2022
- France arms exports share 11% 2018-2022
- US defense industry employs 1.14 million directly in 2022
- Aerospace sector supports 2.2 million total jobs in US 2022
- Lockheed Martin employs 114,000 people worldwide 2023
- Global military spending $2.24 trillion in 2023
- US military budget $916B in 2023, 40% of global
- China defense spending $292B in 2023
The global arms industry grew significantly to $592 billion in 2021, led by the United States.
Arms Exports
- Global arms exports grew 14% 2018-2022 vs prior period
- US share of global arms exports 40% in 2018-2022
- France arms exports share 11% 2018-2022
- Russia exports dropped to 10% share 2018-2022
- China arms exports 5.2% share 2018-2022
- Germany 5.6% global arms exports 2018-2022
- India 2.0% share of arms exports 2018-2022
- Top 5 exporters 76% of global arms trade 2018-2022
- Saudi Arabia largest arms importer 9.8% 2018-2022
- India 9.2% of global arms imports 2018-2022
- Qatar imports surged 431% 2018-2022
- Ukraine imports up 96% 2018-2022
- US exported $238B in arms 2018-2022
- France arms exports $48B TIV 2018-2022
- Russia arms exports $31B TIV 2018-2022 down 48%
- Aircraft 28% of arms trade volume 2018-2022
- Armoured vehicles 21% of transfers 2018-2022
- Artillery 14% of global arms exports 2018-2022
- US F-35 exports to 19 countries by 2023
- Middle East 31% of global arms imports 2018-2022
- Asia-Oceania 42% arms imports 2018-2022
- Europe 14% arms imports 2018-2022
- US arms export approvals $238B FY2020-2024
Arms Exports Interpretation
While the U.S. plays the generous host at the global arms bazaar, pouring 40% of the drinks, the Middle East remains the thirstiest customer, proving that business is booming in the art of selling security by the barrel.
Employment
- US defense industry employs 1.14 million directly in 2022
- Aerospace sector supports 2.2 million total jobs in US 2022
- Lockheed Martin employs 114,000 people worldwide 2023
- RTX workforce 185,000 employees 2023
- Northrop Grumman 95,000 employees 2023
- Boeing 171,000 employees with 35% in defense 2023
- General Dynamics 106,000 workers 2023
- BAE Systems 90,500 employees globally 2022
- Defense industry multiplier effect creates 1 additional job per direct job in US
- UK defense sector employs 138,000 directly 2023
- French arms industry 165,000 jobs 2022
- German defense firms employ 80,000 2022
- Israel's defense sector 50,000 high-tech jobs 2023
- India's defense PSUs employ 400,000 2023
- Top 100 arms firms employ 3.3 million people 2021
- US DoD civilian workforce 800,000 in 2023
- Defense primes outsourcing 70% of work to SMEs US
- Women comprise 20% of US defense workforce 2022
- Veterans make up 30% of defense contractor hires US
- Global arms industry supports 10 million indirect jobs
- Lockheed Martin added 5,600 jobs in 2022
- RTX hired 12,000 amid Ukraine war 2022
- Defense R&D employs 300,000 specialists US
- Supply chain for arms adds 1.5M jobs US 2023
Employment Interpretation
The arms industry presents itself as an engine of economic stability, employing millions worldwide, yet this prosperity is fundamentally tethered to a perpetual state of global conflict and insecurity.
Government Spending
- Global military spending $2.24 trillion in 2023
- US military budget $916B in 2023, 40% of global
- China defense spending $292B in 2023
- Russia military expenditure $109B 2023 up 24%
- India $81.4B defense budget 2023
- Saudi Arabia $75.8B military spend 2023
- UK defense budget $74.7B in 2023
- Germany $66.8B up 51% in 2023
- France $61.3B military spending 2023
- Japan $50.2B defense outlay 2023 up 11%
- Ukraine spending 37% of GDP on military 2023
- Global military burden 2.3% GDP in 2023
- NATO spending $1.34T total 2023
- US DoD procurement $170B in FY2023
- R&D funding $145B globally 2023 est.
- Personnel costs 24% of global spending 2022
- Equipment spending up 6.8% 2023
- Middle East spending rose 9.0% 2023
- Europe military spend up 16% 2023
- US F-35 program cost $428B lifetime
Government Spending Interpretation
While the world spends a staggering $2.24 trillion annually preparing for its worst-case scenarios, one can't help but wonder if that level of investment in our better angels might have rendered the arsenals obsolete.
Market Size
- The global arms industry revenue reached $592 billion in 2021
- Top 100 arms companies' arms sales totaled $592 billion in 2021, up 19% from 2020
- US arms industry sales accounted for 51% of global top 100 in 2021
- Lockheed Martin reported $67 billion in arms sales in 2021
- RTX (Raytheon) arms sales were $42.9 billion in 2021
- Northrop Grumman arms revenue hit $32.5 billion in 2021
- Boeing defense sales reached $26.5 billion in 2021
- General Dynamics arms sales were $25.7 billion in 2021
- Global military services market grew to $148 billion in 2021
- Arms sales of top 100 companies rose 19% from 2016-2021 average
- BAE Systems arms revenue was $24.5 billion in 2021
- Chinese arms firms sales estimated at $79 billion in 2021
- Aviation industry arms sales totaled $195 billion in 2021
- Electronics & optronics arms sales reached $173 billion in 2021
- Vehicles & equipment arms revenue was $92 billion in 2021
- Other arms sales category hit $132 billion in 2021
- US firms dominated with 41 of top 100 slots in 2021
- European arms sales totaled $121 billion in 2021
- Global arms market projected to grow to $700 billion by 2027
- Defense market size was $531.18 billion in 2023
Market Size Interpretation
The global arms industry, a nearly six-hundred-billion-dollar symphony of aviation, electronics, and grim necessity, plays a crescendo where the United States conducts the majority of the orchestra, proving that while peace may be the goal, preparing for its opposite remains a spectacularly lucrative business.
Top Companies
- Lockheed Martin is the world's largest arms producer with $60.8B revenue in 2022
- RTX ranked 2nd with $40.6B defense revenue in 2022
- Northrop Grumman 3rd at $32.3B in 2022
- Boeing 4th with $26.0B defense sales 2022
- General Dynamics 5th at $23.3B in 2022
- BAE Systems 6th with $23.0B revenue 2022
- China North Industries (NORINCO) 7th est. $21.8B
- China Aviation Industry Corp (AVIC) 8th $20.7B
- L3Harris Technologies 9th at $15.6B in 2022
- Huntington Ingalls Industries 10th $10.7B 2022
- Leonardo S.p.A. arms sales $15.3B in 2021 SIPRI
- Airbus defense revenue $12.5B in 2021
- Honeywell aerospace defense $9.8B 2021
- Thales Group $9.2B arms sales 2021
- Leidos Holdings $10.2B military services 2021
- Booz Allen Hamilton $6.8B services 2021
- SAIC $7.0B military services 2021
- Israel's Elbit Systems $5.0B arms 2021
- India's Hindustan Aeronautics $3.5B 2021
- South Korea's Hanwha $3.8B arms 2021
- Turkey's Aselsan $2.1B 2021
- Poland's PGZ Group $2.4B 2021
- US DoD awarded $439B in contracts in FY2022
- Lockheed Martin backlog $156B as of 2023
- RTX backlog $196B end 2023
- World's top 5 arms firms are all American
- SIPRI ranks 100th firm sales at $661M in 2021
Top Companies Interpretation
The global arms industry is a remarkably exclusive club where the top five members are all American, the membership fee starts at tens of billions, and the hundredth richest member is still a billionaire in waiting.
Sources & References
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