Global arms demand grows, SIPRI reports: are manufacturers ready?

This is stated in a report by the Stockholm International Peace Research Institute (SIPRI), according to Babel.

Increased demand for weapons

In 2022, revenue from arms sales and military services of the 100 largest companies in the industry amounted to $597 billion, down 3.5% from 2021, despite a sharp increase in demand.

"Many arms companies faced obstacles in adjusting to production for high-intensity warfare. However, new contracts were signed, notably for ammunition, which could be expected to translate into higher revenue in 2023 and beyond," said Dr Lucie Béraud-Sudreau, Director of SIPRI’s Military Expenditure and Arms Production Programme.

Revenue from arms sales

The 40 US companies accounted for 51% of total arms sales revenues in the top 100, and their revenues fell by 7.9% to $302 billion in 2022.

The arms revenues of the 22 companies from Asia and Oceania included in the rating grew by 3.1% to reach $134 billion in 2022. This is the second year in a row that the top 100 countries in Asia and Oceania have seen their arms sales exceed those in Europe.

Revenues from arms sales of the 26 companies in the top 100 based in Europe grew by 0.9% to reach $121 billion in 2022.

"The war in Ukraine created a demand for materiel suited to a war of attrition, like ammunition and armoured vehicles. Many European producers of these items saw their revenues grow. They included companies based in Germany, Norway and Poland," said Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production Programme.

The Middle East saw the largest percentage increase in arms sales revenue of any region in 2022, as all seven Middle Eastern companies in the top 100 recorded significant growth. Their total arms revenue of $17.9 billion increased by 11% year-on-year.

Ukroboronprom was also included in the ranking, but its arms revenues fell by 10% in real terms, to $1.3 billion.