STOCKHOLM, Sweden — In a recent report, it was highlighted that the major players in the arms manufacturing sector experienced a revenue growth of 4.2% in 2023. This increase was particularly significant for companies located in Russia and the Middle East amidst rising demands arising from the ongoing conflicts in Ukraine and Gaza.

According to the findings released by the Stockholm International Peace Research Institute (SIPRI), the total revenue generated by the top 100 arms manufacturers reached an impressive $632 billion last year. The report noted that smaller firms proved to be more agile in meeting the new demands compared to some larger corporations.

In contrast, a few major firms, including prominent U.S. manufacturers such as Lockheed Martin and RTX, faced declines in their earnings due to their engagement in complex, long-term contracts. Nonetheless, the 41 U.S.-based arms manufacturers among the top 100 reported revenues of $317 billion, marking a 2.5% increase from the previous year.

Since 2018, the leading companies within the arms industry have consistently included Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics. The report also noted that six companies operating in the Middle East, which are part of the top 100, experienced a substantial revenue growth of 18%, totaling $19.6 billion.

Particularly noteworthy was the revenue surge for three Israeli companies in the top 100, which collectively reached $13.6 billion, the highest figure ever recorded for Israeli manufacturers in the SIPRI reports, attributed to the conflict outbreak in Gaza.

On the other hand, the European arms sector, excluding Russia, exhibited the slowest revenue growth, totaling $133 billion, which is just a 0.2% increase compared to 2022. This stagnation can largely be traced back to producers continuing with older, long-term contracts. However, smaller European companies managed to swiftly respond to the heightened demand stemming from Russia’s ongoing war with Ukraine.

Additionally, it was observed that the two largest arms firms in Russia saw a staggering 40% increase in their combined revenues, amounting to an estimated $25.5 billion. The report attributes this significant growth primarily to Rostec, a state-owned holding company that oversees many arms producers and experienced a remarkable 49% rise in its arms revenues.