Global arms sales by top 25 companies up by 8.5 percent in 2019

Sales of arms and military services by the sector’s largest 25 companies totalled $361 billion in 2019, 8.5 percent more than in 2018, said a report by SIPRI.

According to Sweden-based Stockholm International Peace Research Institute (SIPRI) the world’s 25 largest arms-producing and military services companies (arms companies) topped $361 billion in 2019. This represents an 8.5 percent increase in real terms over the arms sales of the top 25 arms companies in 2018.

Top five companies – Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics – are all US- based. They jointly registered $166 billion in annual arms sales. Total 12 US companies appeared in top 25 for 2019 and they combine share 61 percent of the total arms sales of the top 25.

For the first time, a Middle Eastern firm, ‘EDGE’, made it to the top 25. The company is based in the United Arab Emirates (UAE), was created in 2019 from the merger of over 25 smaller companies. It ranked at number 22 and accounted for 1.3 percent of total arms sales of the top 25.

L3Harris Technologies (ranked 10th) was also making its first appearance in the top 25. It was formed after the merger of two US companies that were both in the top 25 in 2018: Harris Corporation and L3 Technologies.

Meanwhile, four companies in top 25 are based in China, which continues to grow in arms sales. Three companies – Aviation Industry Corporation of China (AVIC; ranked 6th), China Electronics Technology Group Corporation (CETC; ranked 8th) and China North Industries Group Corporation (NORINCO; ranked 9th) – are in top 10 while China South Industries Group Corporation (CSGC; ranked 24th).

Nan Tian, Senior Researcher at SIPRI commenting on arms sales by Chinese companies, said “Chinese arms companies are benefiting from military modernisation programmes for the People’s Liberation Army.”

After the US, China accounted for the second largest share of 2019 arms sales by the top 25 arms companies, at 16 percent.

The revenues of the two Russian companies— Almaz-Antey and United Shipbuilding – in the top 25 decreased between 2018 and 2019, by a combined $634 million.

A third Russian company, United Aircraft, lost $1.3 billion in sales and dropped out of the top 25 in 2019.

The two Russian companies in the ranking accounted for 3.9 percent, while, the six West European companies together accounted for 18 percent.

Lockheed Martin registered the largest increase in arms revenue which was $5.1 billion or equivalent to 11 percent in real terms.

The largest percentage increase in annual arms sales—105—was reported by French producer Dassault Aviation Group.

The report also reviewed the international presence of the 15 largest arms companies in 2019. These companies were present in 49 countries, through majority-owned subsidiaries, joint ventures and research facilities.