While global tensions often simmer unseen, the staggering reality is that nations poured a record $2.443 trillion into their militaries in 2023, fueling an industry that directly employs millions and reshapes geopolitical power daily.
Key Takeaways
- World military expenditure in 2023 totaled $2,443 billion, an increase of 6.8% in real terms from 2022
- US military spending in 2023 was $916 billion, accounting for 37% of global total
- China's military expenditure grew by 6.0% to $292 billion in 2023
- US arms exports from 2019-2023 totaled $238 billion, 42% of global share
- Saudi Arabia was the world's largest arms importer 2019-2023 with 11.7% market share
- US share of global major arms exports was 42% in 2019-2023
- US defense employment totaled 3.5 million including contractors in 2023
- Lockheed Martin employed 122,000 people worldwide in 2023
- Boeing Defense employed 18,000 in 2023
- Lockheed Martin revenue in 2023 was $67.6 billion, up 2%
- RTX (Raytheon) revenue reached $68.9 billion in 2023
- Northrop Grumman revenue $39.3 billion in 2023
- Global F-35 production reached 1,000th aircraft by Lockheed in 2024
- US Navy procured 10 Virginia-class submarines in FY2023 budget
- Raytheon produced 500th Patriot missile system battery
Global military spending surged in 2023 as conflict and geopolitical tensions continued driving arms production.
Arms Sales
- US arms exports from 2019-2023 totaled $238 billion, 42% of global share
- Saudi Arabia was the world's largest arms importer 2019-2023 with 11.7% market share
- US share of global major arms exports was 42% in 2019-2023
- France was second largest exporter with 11% share 2019-2023
- Russia's arms exports share fell to 11% 2019-2023 from 21% previous period
- China’s arms exports rose by 5.9% 2019-2023, share 5.8%
- India was largest arms importer with 9.8% share 2019-2023
- Qatar's arms imports increased by 27% 2019-2023
- Pakistan was main recipient of Chinese arms exports, 63% of China's total
- Middle East arms imports fell 20% 2019-2023
- Global arms imports decreased by 3.9% 2019-2023
- US exports to Saudi Arabia averaged 15% of US total 2019-2023
- Germany's arms exports reached €9.5 billion in 2023
- UK arms sales totaled £11.3 billion in 2022/23
- France's arms exports hit €10.8 billion in 2023
- South Korea became top 10 exporter with 1.1% share 2019-2023
- Turkey's arms exports grew 120% 2019-2023
- Israel's arms exports reached $12.5 billion in 2023
- Global arms trade volume in 2022 was $592 billion estimate
Arms Sales Interpretation
While the world's appetite for weapons slightly waned, the US firmly kept its seat as the globe's undisputed arms dealer, proving that even in a shrinking market, a well-oiled war machine still runs on exceptionally lucrative fumes.
Company Revenues
- Lockheed Martin revenue in 2023 was $67.6 billion, up 2%
- RTX (Raytheon) revenue reached $68.9 billion in 2023
- Northrop Grumman revenue $39.3 billion in 2023
- Boeing revenue $77.8 billion total, defense $25B in 2023
- General Dynamics revenue $42.3 billion in 2023
- BAE Systems revenue £25.3 billion in 2023
- Airbus Defence revenue €11.8 billion in 2023
- Leonardo S.p.A. revenue €15.3 billion in 2023
- L3Harris revenue $19.4 billion in 2023
- Huntington Ingalls revenue $11.5 billion in 2023
- Top 100 arms companies sales totaled $632 billion in 2023, up 4.2%
- US arms firms in Top 100 had $317 billion sales, 50% share
- Chinese firms sales $97 billion, 15% of Top 100
- Profits of Top 100 rose to $132 billion in 2023
- Lockheed Martin profits $6.9 billion in 2023
- RTX profits $3.2 billion in 2023
- Boeing defense profits negative due to overruns
Company Revenues Interpretation
In a world perpetually worried about peace, the global arms industry finds itself in the enviable position of having a business model that is, quite literally, always in demand, raking in over $600 billion last year with profits soaring to new heights while even its occasional losses are spectacularly expensive.
Employment
- US defense employment totaled 3.5 million including contractors in 2023
- Lockheed Martin employed 122,000 people worldwide in 2023
- Boeing Defense employed 18,000 in 2023
- Raytheon Technologies (RTX) had 185,000 employees in 2023
- Northrop Grumman employed 95,000 in 2023
- General Dynamics had 106,000 employees in 2023
- BAE Systems employed 93,000 globally in 2023
- US DoD civilian workforce was 772,000 in 2023
- Defense industry jobs in US supported 2.9 million indirect jobs in 2022
- Europe's defense sector employed 1.1 million in 2022
- India's defense industry employs over 1 million directly and indirectly
- China's defense firms employ millions, with AVIC alone 500,000+
- South Africa's defense industry employs 20,000 directly
- Australia's defense workforce is 60,000 strong in 2023
- Turkey's defense sector employs 300,000+
Employment Interpretation
While Lockheed Martin's 122,000 employees could staff a small city, and China's AVIC alone could populate a large one, the collective global defense industry's workforce of millions reveals a sobering truth: peace, or at least the deterrence of war, is a staggeringly large and complex full-time job.
Military Spending
- World military expenditure in 2023 totaled $2,443 billion, an increase of 6.8% in real terms from 2022
- US military spending in 2023 was $916 billion, accounting for 37% of global total
- China's military expenditure grew by 6.0% to $292 billion in 2023
- Russia's military spending increased by 24% to $109 billion in 2023
- India’s military expenditure rose by 4.2% to $83.6 billion in 2023
- Military spending in Europe as a whole grew by 16% in 2023 to $385 billion
- Ukraine's military expenditure jumped by 51% to $64.8 billion in 2023
- Saudi Arabia's military spending fell by 10% to $75.8 billion in 2023
- US military budget request for FY2024 was $842 billion
- NATO members' combined military spending reached 2% of GDP target for more countries in 2023
- Global military expenditure as share of GDP averaged 2.3% in 2022
- UK's military spending in 2023 was $74.9 billion, up 5.9%
- France's military budget increased to $61.3 billion in 2023
- Japan's military spending rose 11% to $50.2 billion in 2023
- Germany's military expenditure surged 11% to $66.8 billion in 2023
- South Korea's military spending grew 3.9% to $46.3 billion in 2023
- Brazil's military budget was $23.0 billion in 2023, up 2.5%
- Australia's defense spending reached $32.3 billion in 2023
- Turkey's military expenditure was $15.8 billion in 2023, down 12%
- Israel's military spending rose 24% to $27.5 billion in 2023
Military Spending Interpretation
With the world's security check growing by a hefty 6.8% to a staggering $2.4 trillion, it seems the global neighborhood watch has become extraordinarily well-funded, albeit with the United States covering more than a third of the bill while others like Russia and Ukraine make significant, conflict-driven upgrades to their subscriptions.
Production Figures
- Global F-35 production reached 1,000th aircraft by Lockheed in 2024
- US Navy procured 10 Virginia-class submarines in FY2023 budget
- Raytheon produced 500th Patriot missile system battery
- Northrop Grumman delivered 50 B-21 Raider prototypes in development
- General Dynamics Land Systems produced 250 Abrams tanks upgrades
- Global munitions production ramped up 10-fold for artillery shells in 2023
- US F-35 deliveries totaled 156 jets in 2023 by Lockheed
- Boeing delivered 40 P-8 Poseidon aircraft cumulatively
- BAE Systems produced 100 Hawk trainer jets for exports
- Leonardo delivered 20 M346 trainer jets in 2023
- Global drone production led by US with 40% market
- R&D spending by US DoD was $145 billion in FY2023
- Lockheed invested $1.9 billion in R&D in 2023
- RTX R&D spend $2.8 billion in 2023
Production Figures Interpretation
The sheer volume and variety of hardware rolling off production lines, matched only by the staggering sums spent on tomorrow's weapons, suggests a global industrial base that has quietly but decisively shifted into a gear not seen in decades.
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