While war may be humanity's oldest scourge, its industrialized form is now a near $600 billion a year economic engine, fueling everything from the production of a new stealth bomber every month to the employment of millions.
Key Takeaways
- In 2022, the global arms industry generated total sales of $592 billion, marking a 3.9% increase from 2021.
- Lockheed Martin achieved $67.6 billion in total revenue in 2022, with 71% from U.S. government contracts.
- RTX (Raytheon Technologies) reported $67.1 billion in net sales for 2022, up 11% from the previous year.
- The US arms industry produced over 1.5 million small arms in 2022.
- Lockheed Martin delivered 142 F-35 aircraft in 2022 across all variants.
- Boeing produced 28 F/A-18 Super Hornets in 2022 for US Navy.
- The weapons industry employed 2.5 million people directly in the US in 2022.
- Lockheed Martin had 121,000 employees worldwide as of 2022.
- RTX employed 174,000 people in 2022, with 70% in US.
- Global arms exports reached $108 billion in 2018-2022, down 5.1% from prior period.
- US share of global arms exports was 40% in 2018-2022.
- France became world's second largest arms exporter with 11% share 2018-2022.
- Lockheed Martin R&D spending was $1.6 billion in 2022.
- RTX invested $2.8 billion in R&D in 2022 across defense tech.
- Northrop Grumman R&D expenditure $1.2 billion in 2022.
The global weapons industry saw massive growth in sales and production during 2022.
Arms Exports
- Global arms exports reached $108 billion in 2018-2022, down 5.1% from prior period.
- US share of global arms exports was 40% in 2018-2022.
- France became world's second largest arms exporter with 11% share 2018-2022.
- Russia’s arms exports fell 53% between 2013-17 and 2018-22.
- Saudi Arabia was top importer, receiving 9.8% of global arms imports 2018-2022.
- India remained largest arms importer at 11% of global total 2018-2022.
- US exported major arms worth $52 billion annually avg 2018-2022.
- F-35 exports: 258 jets delivered to allies by 2022.
- Germany approved €100 billion arms export surge post-Ukraine 2022.
- Ukraine received $50 billion in arms transfers since 2022 invasion.
- Australia signed AUKUS deal for nuclear subs, $368 billion over 30 years.
- Qatar top recipient of US arms, $20 billion in deals 2018-2022.
- P-8 Poseidon aircraft exported to 10 nations, 120+ units by 2022.
- HIMARS exported to Poland: 290 units approved 2022.
- Turkey exported $3.6 billion in defense goods in 2022.
- South Korea arms exports hit $17 billion in 2022.
- Brazil exported $1.5 billion arms in 2022 led by Embraer.
- Apache helicopters exported: 500+ to 15 countries by 2022.
- Eurofighter Typhoon exports: 160 jets to 6 nations by 2022.
- Global arms trade volume: 12% drop to $108 billion TIV 2018-2022.
- US DSCA approved $238 billion in arms sales 2018-2022.
- Egypt imported $5 billion arms yearly avg, mostly US.
- Patriot systems exported to 19 countries, 1,200 launchers by 2022.
Arms Exports Interpretation
Amidst a slight global dip in this grim commerce, America remains its unshakable pillar, France edges into second as Russia stumbles, and a familiar cast of anxious nations continues to trade fortunes for firepower.
Employment Numbers
- The weapons industry employed 2.5 million people directly in the US in 2022.
- Lockheed Martin had 121,000 employees worldwide as of 2022.
- RTX employed 174,000 people in 2022, with 70% in US.
- Boeing's defense workforce stood at 34,000 in 2022.
- Northrop Grumman employed 95,000 staff in 2022.
- General Dynamics had 106,000 employees in 2022.
- BAE Systems employed 93,000 people globally in 2022.
- L3Harris had 47,000 employees in 2022.
- US defense sector supported 3.5 million jobs including indirect in 2022.
- Huntington Ingalls employed 44,000 shipbuilders in 2022.
- Global arms industry direct employment ~10 million in 2022 per SIPRI.
- Raytheon Missiles & Defense unit had 65,000 employees in 2022.
- Lockheed Martin added 5,000 jobs in 2022 for F-35 ramp-up.
- Boeing hired 10,000 in defense division 2022 amid backlog.
- Northrop Grumman workforce grew 2% to 95,000 in 2022.
- BAE Systems US subsidiary employed 35,000 in 2022.
- General Dynamics increased Marine Systems staff by 1,500 in 2022.
- Europe's arms firms employed 1.2 million in 2022.
- Thales Group had 81,000 employees in 2022.
- Leonardo S.p.A. employed 53,000 worldwide in 2022.
- Rheinmetall workforce reached 30,000 in 2022.
- Saab AB employed 21,000 in 2022.
- Elbit Systems had 18,000 employees in 2022.
- Textron defense employees ~25,000 in 2022.
- US DoD civilian workforce in procurement 180,000 in 2022.
- Arms industry STEM jobs in US: 1 million in 2022.
- Lockheed F-35 program supports 1,800 US suppliers employing 254,000.
Employment Numbers Interpretation
If the global arms industry were a small country, its 10 million direct employees and vast ecosystem of allied jobs would make it a surprisingly bustling and well-armed one, proving that while peace is the goal, preparing for conflict remains a remarkably labor-intensive business.
Production Volumes
- The US arms industry produced over 1.5 million small arms in 2022.
- Lockheed Martin delivered 142 F-35 aircraft in 2022 across all variants.
- Boeing produced 28 F/A-18 Super Hornets in 2022 for US Navy.
- Raytheon manufactured 1,200 Stinger missiles in 2022 amid Ukraine demand.
- Northrop Grumman produced 12 B-21 Raider stealth bombers in initial low-rate production by 2023.
- General Dynamics Land Systems delivered 250 Abrams M1A2 tanks upgrades in 2022.
- BAE Systems produced 300 M109 howitzers for US Army in 2022.
- Global production of combat drones exceeded 5,000 units in 2022.
- US munitions production ramped up to 36,000 155mm artillery shells per month by late 2023.
- Lockheed Martin built 18 F-16 Block 70/72 aircraft in 2022 for export.
- RTX produced 500 JASSM-ER cruise missiles in 2022.
- Shipbuilding: Huntington Ingalls launched 2 Virginia-class submarines in 2022.
- Global tank production totaled 1,200 main battle tanks in 2022.
- Poland's PGZ group produced 250 Rosomak IFVs in 2022.
- Turkey's Baykar produced 200 Bayraktar TB2 drones in 2022.
- Israel Aerospace Industries manufactured 50 Heron TP drones in 2022.
- Rheinmetall produced 1 million 155mm shells capacity targeted for 2024, from 2022 base.
- US Precision Guided Munitions output: 2,000 JDAMs per month in 2023.
- BAE Hawk trainer aircraft: 12 delivered in 2022.
- Saab Gripen production: 10 new jets for Sweden in 2022.
- Leonardo AW169 helicopters: 25 military variants produced in 2022.
- Global small arms production estimated at 10 million firearms annually avg 2020-2022.
- F-35 total production reached 1,000th jet in 2023, 758 by end 2022.
- Virginia-class subs: 2 commissioned, 10 in production pipeline 2022.
- HIMARS launchers: Lockheed delivered 50 in 2022.
- Patriot PAC-3 MSE missiles: RTX produced 550 in 2022.
Production Volumes Interpretation
While the world talks of peace, its workshops hum a different tune, forging over a million rifles, a stealth bomber dozen, and enough artillery shells each month to make every sunset a potential fireworks show.
R&D Spending
- Lockheed Martin R&D spending was $1.6 billion in 2022.
- RTX invested $2.8 billion in R&D in 2022 across defense tech.
- Northrop Grumman R&D expenditure $1.2 billion in 2022.
- Boeing Defense R&D $1.9 billion in 2022 for hypersonics and autonomy.
- BAE Systems R&D spend £1.1 billion in 2022.
- General Dynamics R&D $0.7 billion in 2022.
- Global arms industry R&D totaled ~$50 billion in 2022 per estimates.
- DARPA budget for weapons tech $3.9 billion in FY2022.
- US DoD total R&D $119 billion in FY2022, much for industry.
- Lockheed hypersonic R&D $300 million in 2022.
- Raytheon hypersonic weapons R&D $500 million annually avg.
- Northrop B-21 R&D costs exceeded $2 billion by 2022.
- Europe's EDA R&D funding €1.4 billion in 2022.
- Thales R&D investment €1.3 billion in 2022.
- Leonardo R&D €900 million in 2022 for next-gen fighters.
- Rheinmetall R&D €500 million in 2022 for ammo production tech.
- Saab R&D SEK 5.5 billion in 2022.
- Elbit Systems R&D $450 million in 2022.
- Global directed energy weapons R&D market $5 billion in 2022.
- US Navy hypersonic R&D $1.5 billion FY2022.
- AI in weapons R&D: $12 billion DoD spend 2022.
- Quantum tech for defense R&D $1 billion US 2022.
- Space weapons R&D $18 billion global 2022.
R&D Spending Interpretation
Behold the modern-day alchemists, who transmute billions in R&D into the grim assurance that tomorrow's weapons will be just as obsolete the day after.
Revenue and Profits
- In 2022, the global arms industry generated total sales of $592 billion, marking a 3.9% increase from 2021.
- Lockheed Martin achieved $67.6 billion in total revenue in 2022, with 71% from U.S. government contracts.
- RTX (Raytheon Technologies) reported $67.1 billion in net sales for 2022, up 11% from the previous year.
- Boeing's Defense, Space & Security segment generated $25.0 billion in revenue in 2022.
- Northrop Grumman recorded $39.3 billion in total revenue for 2022, with a profit margin of 11.5%.
- BAE Systems plc had arms sales of £25.3 billion in 2022, representing 92% of total revenue.
- General Dynamics reported $39.4 billion in revenue for 2022, primarily from Marine Systems and Aerospace.
- L3Harris Technologies generated $17.8 billion in revenue in 2022, with 85% from defense contracts.
- The top 100 arms companies had combined arms sales of $592 billion in 2022, up from $569 billion in 2021.
- US arms firms' sales reached $329 billion in 2022, accounting for 55% of the top 100 global total.
- European arms companies saw sales of $137 billion in 2022, a 12% increase year-over-year.
- China's top arms firms reported $103 billion in sales in 2022, up 5.9% from 2021.
- Lockheed Martin's profit from continuing operations was $5.7 billion in 2022.
- RTX's operating profit margin in defense segments was 12.4% in 2022.
- BAE Systems' underlying profit before tax was £2.5 billion in 2022.
- Northrop Grumman's Aeronautics Systems segment revenue was $12.3 billion in 2022.
- General Dynamics' Combat Systems revenue hit $9.2 billion in 2022.
- Global arms industry profits for top firms averaged 8-12% margins in 2022 per SIPRI data.
- Boeing Defense revenue grew 6% to $25 billion in 2022 driven by KC-46 and T-7 contracts.
- L3Harris Integrated Mission Systems revenue was $8.7 billion in 2022.
- In 2021, arms sales by top 100 companies were $569 billion, with US dominance at $288 billion.
- Leonardo S.p.A. reported €14.7 billion in revenue in 2022, 78% from defense.
- Thales Group achieved €18.4 billion in sales in 2022, up 10%.
- Huntington Ingalls Industries revenue was $11.4 billion in 2022 from shipbuilding.
- Textron's Bell segment revenue $7.0 billion in 2022 from helicopters.
- Elbit Systems Ltd. revenue $6.0 billion in 2022, 85% defense-related.
- Saab AB arms sales SEK 38.3 billion in 2022.
- Dassault Aviation military aircraft revenue €5.2 billion in 2022.
- Rheinmetall AG revenue €6.4 billion in 2022, up 28%.
- In 2023 Q1, Lockheed Martin revenue $15.6 billion, up 11% YoY.
Revenue and Profits Interpretation
While the world debates peace, the ledger books of war just posted another record quarter, with Lockheed Martin leading a parade of defense contractors whose profits are as reliably booming as the conflicts they supply.
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