The world’s nations poured a record-breaking $2.4 trillion into their militaries last year, but this staggering figure only begins to tell the story of a global defense sector undergoing rapid and profound transformation.
Key Takeaways
- World military expenditure reached $2,443 billion in 2023, marking a 6.8% increase in real terms from 2022
- US military spending in 2023 totaled $916 billion, accounting for 37% of global military expenditure
- China's military expenditure grew by 6.0% to $296 billion in 2023, the second-largest spender worldwide
- Lockheed Martin net sales reached $67.6 billion in 2023, up 2% from 2022
- RTX (Raytheon) reported 2023 revenues of $68.9 billion, a 3% increase YoY
- Northrop Grumman 2023 sales were $39.3 billion, up 7.5%
- Global arms sales by top 100 companies reached $592 billion in 2022, up 3.7%
- US companies' arms sales totaled $317 billion in 2022, 54% of top 100 total
- Lockheed Martin topped SIPRI Top 100 with $59.4 billion arms sales in 2022
- Defense industry employed 3.5 million people globally in 2022 per SIPRI Top 100
- US defense sector supported 2.1 million jobs in 2023
- Lockheed Martin employed 122,000 people worldwide as of 2023
- RTX R&D spend $2.8 billion in 2023, representing 4% of revenue
- Northrop Grumman R&D investment $1.9 billion in 2023
- Boeing defense R&D $3.2 billion in 2023
Global military spending continues to rise significantly, driven by geopolitical tensions and major powers.
Arms Production and Sales
- Global arms sales by top 100 companies reached $592 billion in 2022, up 3.7%
- US companies' arms sales totaled $317 billion in 2022, 54% of top 100 total
- Lockheed Martin topped SIPRI Top 100 with $59.4 billion arms sales in 2022
- RTX arms revenues $24.0 billion in 2022, second in Top 100
- Northrop Grumman arms sales $16.8 billion in 2022
- Boeing arms sales $16.6 billion in 2022 despite commercial decline
- Chinese companies' combined arms sales $27.0 billion in 2022, up 5.9%
- Aviation Industry Corporation of China (AVIC) arms sales $8.6 billion in 2022
- BAE Systems arms revenues £7.7 billion equivalent in 2022
- Global arms production profit margins averaged 10.2% for Top 100 in 2022
- US firms dominated Top 100 with 41 entries and 51% of sales in 2022
- European companies' arms sales fell 1.5% to $109 billion in 2022
- Leonardo S.p.A. arms sales €15.3 billion in 2022
- Top 100 arms companies employed 2.47 million people in 2022
- Arms sales as share of total sales for Top 100 averaged 42% in 2022
- General Dynamics arms revenues $12.9 billion in 2022
- L3Harris arms sales $7.7 billion in 2022
- US DoD awarded $150 billion in contracts to top contractors in FY2023
- F-35 Lightning II program cumulative sales exceeded 1,000 aircraft by 2023
- Global missile market size projected to reach $72.8 billion by 2028 from $52.6 billion in 2023
- Unmanned aerial vehicles (UAV) market valued at $30.2 billion in 2023
- Global military aircraft market size $105.4 billion in 2023
- Armored vehicles production reached 4,500 units globally in 2023
- Naval vessels deliveries totaled 120 warships worldwide in 2023
- Artillery systems market $25.6 billion in 2023
- Radar systems sales $14.8 billion for defense in 2023
- Electronic warfare market $20.1 billion in 2023
- Cybersecurity defense spending $15.7 billion globally in 2023
- Satellite defense market $14.2 billion in 2023
- Global defense IT spending $128 billion in 2023
- US arms exports notifications totaled $238 billion from 2018-2023
- Global defense electronics market $220 billion in 2023
- US aerospace and defense industry generated $400 billion in exports 2018-2022
- Top 5 arms exporters supplied 75% of major weapons 2018-2022
Arms Production and Sales Interpretation
As a record $592 billion flowed into the world's top arms firms last year, one can't help but note that while the business of war is booming with remarkably steady profits, the global market for new fighter jets and missiles appears far more robust than the one for lasting peace.
Employment and Workforce
- Defense industry employed 3.5 million people globally in 2022 per SIPRI Top 100
- US defense sector supported 2.1 million jobs in 2023
- Lockheed Martin employed 122,000 people worldwide as of 2023
- RTX workforce totaled 185,000 employees in 2023
- Boeing had 171,000 employees, with 35% in defense, approx 60,000 in 2023
- Northrop Grumman employed 95,000 people in 2023
- General Dynamics workforce 106,000 in 2023
- BAE Systems employed 93,300 people globally in 2023
- L3Harris had 50,000 employees in 2023 post-merger
- Aerospace and defense manufacturing jobs in US: 2.2 million in 2023
- STEM talent shortage in US defense: 300,000 unfilled positions projected by 2028
- Women comprise 20% of US defense industry workforce in 2023
- Veterans employed in defense industry: 700,000 in US 2023
- R&D engineers in top US contractors: over 100,000 in 2023
- Global defense supply chain workers: estimated 10 million indirect jobs 2023
- UK defense sector direct employment 135,000, indirect 200,000 in 2023
- French defense industry employs 165,000 directly in 2023
- India's defense PSUs employ 400,000 people in 2023
- China's defense industry workforce over 2 million estimated 2023
- Turnover per employee in US defense firms averaged $400,000 in 2023
- Apprenticeships in UK defense: 10,000 new starts in 2023
- Cyber skills gap in defense: 500,000 global shortage 2023
- US DoD civilian workforce 800,000 in 2023
- Diversity: 25% minorities in US defense manufacturing 2023
- Average salary in US defense engineering $120,000 in 2023
- EU defense sector employment 600,000 direct jobs 2023
- Shipbuilding yards employ 120,000 in US 2023
- AI/ML specialists needed: 50,000 more in defense by 2025 from 2023 base
- Global defense training market $12 billion spent on workforce dev 2023
- Lockheed Martin invested $1.1 billion in employee training 2023
Employment and Workforce Interpretation
Beneath the trillion-dollar budgets and geopolitical strategy, the defense industry's most powerful and precarious asset is its vast human engine—millions of engineers, veterans, and factory workers from Silicon Valley to shipyards, all urgently needed yet increasingly hard to find and keep.
Global Exports and Trade
- US SIPRI arms transfer data shows US share 40% of global major weapons 2019-2023
- Russia arms exports fell 53% 2019-2023 to 11% global share
- France increased arms exports 47% to 11% share 2019-2023
- China arms exports up 13% but 5.8% global share 2019-2023
- Germany arms exports down 4% to 5.6% share 2019-2023
- India became 4th largest arms importer with 9.8% global share 2019-2023
- Saudi Arabia largest arms importer 12% share 2019-2023
- Qatar arms imports up 127% 2019-2023
- Australia imports surged 49% led by Loyal Wingman UAVs 2019-2023
- US notified Congress of $51 billion arms sales in 2023
- Middle East received 29% of global arms imports 2019-2023
- Asia and Oceania 42% of global arms imports 2019-2023
- Europe's arms imports fell 18% 2019-2023
- F-35 exports to 19 partner nations totaled 300+ aircraft by 2023
- P-8 Poseidon aircraft exported to 9 countries, 120+ delivered by 2023
- Global defense trade volume $100 billion annually average 2020-2023
- Turkey's arms exports rose 120% to $5.5 billion in 2023
- South Korea arms exports hit $17 billion 2019-2023
- Ukraine received $50 billion in arms aid imports 2022-2023
- Global small arms trade $8.5 billion in 2023
- US DSCA approvals for Taiwan $19 billion since 2010 to 2023
- Italy arms exports €14.2 billion in 2023
- Brazil became top Latin American exporter with Bayraktar TB2 drones 2023
- Arms trade transparency improved with 110 countries reporting to UNROCA 2023
Global Exports and Trade Interpretation
The global arms market is a grim comedy where the US plays a leading role with a 40% share while Russia’s exports collapse, France struts onto its level, China quietly climbs, and everyone from Australia to Qatar is stocking up, proving that the world is investing more in its divisions than its solutions.
Global Military Spending
- World military expenditure reached $2,443 billion in 2023, marking a 6.8% increase in real terms from 2022
- US military spending in 2023 totaled $916 billion, accounting for 37% of global military expenditure
- China's military expenditure grew by 6.0% to $296 billion in 2023, the second-largest spender worldwide
- Russia's military spending increased by 24% to $109 billion in 2023 amid the war in Ukraine
- India ranked fourth globally with $83.6 billion in military expenditure in 2023, up 4.2%
- Global military spending as a share of GDP averaged 2.4% in 2023
- Europe's military expenditure rose 16% to $444 billion in 2023, the steepest year-on-year increase since at least 1990
- Ukraine's military spending surged 51% to $64.8 billion in 2023, 37% of GDP
- Saudi Arabia's military expenditure was $75.8 billion in 2023, sixth largest globally
- Middle East military spending increased 9.0% to $200 billion in 2023
- Global military spending grew by 19% in real terms between 2014 and 2023
- US military spending constituted 3.5% of GDP in 2023
- Poland's military expenditure rose 75% to $31.6 billion in 2023, 3.9% of GDP
- Japan's military spending increased 11% to $50.2 billion in 2023
- South Korea's military budget was $46.3 billion in 2023, up 4.4%
- Global military spending hit 2.2% of world GDP in 2023
- Algeria's military expenditure grew 76% to $18.3 billion in 2023
- Israel's military spending rose 24% to $27.5 billion in 2023
- Australia increased military spending by 4.0% to $32.3 billion in 2023
- World military expenditure in 2022 was $2,240 billion
- The top 5 military spenders accounted for 61% of global total in 2023
- NATO members' military spending reached $1,327 billion in 2023
- Iran's military expenditure was $10.3 billion in 2023, up 12%
- Global military spending per capita was about $307 in 2023
- Sub-Saharan Africa's military spending fell 7.2% to $22.2 billion in 2023
- US DoD budget request for FY2024 was $842 billion
- UK's military spending was $74.9 billion in 2023, 2.3% of GDP
- France's military expenditure totaled $61.3 billion in 2023
- Germany boosted military spending by 48% to $66.8 billion in 2023
Global Military Spending Interpretation
It seems the world is frantically upgrading to the 'Premium Global Conflict' subscription tier, with everyone from the US to Ukraine paying record fees while the fine print of geopolitical instability keeps auto-renewing.
Major Defense Contractors
- Lockheed Martin net sales reached $67.6 billion in 2023, up 2% from 2022
- RTX (Raytheon) reported 2023 revenues of $68.9 billion, a 3% increase YoY
- Northrop Grumman 2023 sales were $39.3 billion, up 7.5%
- Boeing Defense, Space & Security segment generated $25.0 billion in revenue in 2023, down 14%
- General Dynamics 2023 revenues totaled $42.3 billion, up 8.8%
- BAE Systems reported £25.3 billion in sales for 2023, up 14%
- L3Harris Technologies 2023 revenue was $19.4 billion, up 10%
- Huntington Ingalls Industries shipbuilding revenue reached $11.5 billion in 2023, up 12%
- Lockheed Martin's F-35 program backlog stood at $137 billion as of 2023
- RTX's Collins Aerospace segment contributed $7.0 billion in Q4 2023 sales
- Northrop Grumman Aeronautics Systems sales were $12.4 billion in 2023
- Boeing delivered 44 F/A-18 Super Hornets in 2023 under defense contracts
- General Dynamics Mission Systems revenue was $9.7 billion in 2023
- BAE Systems US operations generated $13.8 billion in 2023 sales
- L3Harris Integrated Mission Systems sales reached $9.8 billion in 2023
- Lockheed Martin backlog totaled $156 billion at end-2023
- RTX Pratt & Whitney engines sales were $2.7 billion in Q4 2023
- Northrop Grumman Space Systems revenue $11.1 billion in 2023
- Boeing's T-7A Red Hawk trainer deliveries began in 2023 with DoD contract value $9.1 billion
- General Dynamics Marine Systems built 1.7 amphibious ships worth $4.5 billion in 2023
- BAE Systems Electronic Systems division sales £3.2 billion in 2023
- L3Harris Communications Systems revenue $5.2 billion in 2023
- Lockheed Martin Missiles and Fire Control net sales $11.3 billion in 2023
- RTX Missiles and Defense segment sales $10.4 billion in Q4 2023 annualized
- Northrop Grumman Mission Systems sales $9.7 billion in 2023
- Boeing Phantom Works R&D investment $1.2 billion in 2023
- General Dynamics Information Technology revenue $4.1 billion in 2023
- BAE Systems Platforms & Services US sales $5.6 billion in 2023
- L3Harris Aerojet Rocketdyne acquisition added $2.3 billion revenue potential in 2023
- Lockheed Martin Space segment sales $12.1 billion in 2023
- RTX total backlog $202 billion at end-2023
- Northrop Grumman total funded backlog $78.1 billion in 2023
- Boeing defense backlog $59 billion end-2023
- General Dynamics order backlog $93.7 billion in 2023
Major Defense Contractors Interpretation
While global tensions provide a reliably grim growth chart, the defense industry's 2023 financials show a sector profitably humming along, with Lockheed and RTX neck-and-neck for the top spot at nearly $70 billion each, trailed by a pack of others posting steady gains—all except Boeing, which took a notable $4 billion tumble while its rivals happily cashed in.
R&D and Innovation
- RTX R&D spend $2.8 billion in 2023, representing 4% of revenue
- Northrop Grumman R&D investment $1.9 billion in 2023
- Boeing defense R&D $3.2 billion in 2023
- Global defense R&D spending $100 billion annually average 2020-2023
- US DoD S&T budget $17.2 billion in FY2024 request
- Hypersonic weapons R&D global investment $10 billion in 2023
- AI in defense market $9.2 billion in 2023, projected $38.8 billion by 2028
- Directed energy weapons R&D funding $1.5 billion US alone 2023
- Quantum technology defense R&D $2.4 billion global 2023
- Lockheed Martin hypersonic tech patents 150+ filed 2018-2023
- DARPA budget $4.0 billion in FY2023 for breakthrough tech
- Space domain awareness R&D $5.8 billion US 2023
- Cyber R&D defense spending $11.2 billion global 2023
- Unmanned systems R&D $8.5 billion in 2023
- 6G military comms R&D investment $1.2 billion 2023
- Biotech defense R&D $900 million US 2023
- Stealth tech advancements: B-21 Raider program $80 billion lifecycle R&D
- Autonomous swarms R&D prototypes tested 50+ by US DoD 2023
- Additive manufacturing in defense saved $500 million in prototyping 2023
- Global defense 5G private networks R&D $3.1 billion 2023
- Exoskeleton tech R&D contracts $400 million awarded 2023
- Laser weapon systems fielded 10 prototypes by US Navy 2023
- NGAD fighter jet R&D $2.5 billion annual US investment 2023
- Defense blockchain R&D $600 million global 2023
R&D and Innovation Interpretation
While our collective human R&D budget for things like curing diseases remains tragically underwhelming, the global defense sector is investing tens of billions annually to ensure our future wars are fought with swarms of AI-driven hypersonic drones, laser weapons, and quantum-powered stealth jets—a staggering testament to our species' unparalleled commitment to perfecting the art of not getting along.
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