global Arms Sales Surge to $679 Billion in 2024,Driven by ukraine War
Jakarta – Weapons manufacturers have achieved record profits in 2024,with global arms sales and military services reaching $679 billion (approximately Rp. 11,313 trillion), according to a report by the Stockholm International Peace Research Institute (SIPRI).
This figure represents a 5.9% increase (inflation-adjusted) compared to 2023.Rising geopolitical tensions, notably the war in Ukraine, fueled a surge in demand for weapons, a trend that has continued to strengthen.
So, does RussiaS war in Ukraine benefit othre parties?
“For the defense sector, definitely,” says nan Tian, one of the report’s authors at SIPRI, in an interview with DW.
“In the last two years, the revenues of arms companies have increased significantly,” she added. This growth encompasses the advancement of new military equipment, replenishment of existing stocks, and the replacement of equipment lost in conflict.
German Companies recorded the Biggest Jump
The united states remains the dominant force in the arms industry, with 39 of the top 100 companies based there, accounting for nearly half of global revenue.However, their growth rate was relatively moderate at 3.8%.
European companies (excluding Russia) collectively experienced a more substantial increase of 13% in revenue.
German companies saw the most important growth, with a remarkable 36% increase.
“Almost everything is related to Russia’s invasion of Ukraine,” explained Nan Tian. “There is increasing demand from the German armed forces. both Rheinmetall and Diehl are producing tanks, armored vehicles, and ammunition for the German armed forces to replace equipment sent to Ukraine as military aid, while also expanding the number of tanks and infantry fighting vehicles.”
Russia’s War Economy Remains Strong Despite sanctions
Russia is listed separately in the SIPRI ranking. Despite international sanctions, Russian weapons manufacturers experienced significant growth, driven by a sharp increase in domestic demand.
“the country has fully changed its priorities.Production over the past three years has been directed towards a war economy,” says Nan tian. All resources have been diverted to the war effort. According to the SIPRI report,Russia increased production of 152mm artillery shells by 420% between 2022 and 2024 – from 250,000 to 1.3 million.
Due to international sanctions and export restrictions, Russia’s arms exports have declined, but the surge in domestic demand has more than compensated for these losses.