The Ukraine conflict has pushed global arms sales to record levels.

According to SIPRI's report on the world's top 100 arms manufacturers, total revenue from the sale of weapons and military services in 2024 reached a staggering $679 billion (equivalent to €582 billion).

This figure corresponds to a growth rate of 5.9% (adjusted for inflation) compared to 2023. While last year, geopolitical tensions began to show signs of increasing, by 2024, the global rearmament trend has truly exploded.

Speaking to DW, Nan Tian, ​​a SIPRI expert and co-author of the report, commented: "For the defense sector, Russia's war in Ukraine is certainly a business driver. Revenue for these companies has skyrocketed over the past two years due to the demand for new equipment development, replenishment of stockpiles, and replacement of equipment destroyed on the battlefield."

Germany's defense industry is experiencing "breakthrough" growth.

Although the US remains the "leader" with 39 companies on the list (accounting for nearly half of total global revenue), its growth rate is quite modest, at 3.8%.

Conversely, 26 European companies (excluding Russia) saw an average revenue increase of 13%.

Most notably, German businesses have surged with growth rates reaching 36%.

"Most of this growth is directly related to the conflict in Ukraine," Nan Tian analyzed. "Demand from the German military (Bundeswehr) has surged. Corporations like Rheinmetall and Diehl are operating at full capacity to produce tanks, armored personnel carriers, and ammunition. This is partly to compensate for the amount of weapons already supplied to Kyiv, and partly to expand the scale of the German military's own equipment."

In 2024, Germany had four representatives in the Top 100: Rheinmetall, Thyssenkrupp, Hensoldt, and Diehl, with a combined revenue of $14.9 billion. Rheinmetall recorded a 47% increase in revenue thanks to orders for tanks and artillery shells. The order for 155mm artillery shells from the German army was the largest in the company's history.

Russia: Wartime economy remains strong and thriving.

The SIPRI report separates Russia into a special section. Unsurprisingly, the country's arms manufacturers have experienced strong growth. While export revenues have declined due to international sanctions, massive domestic demand has offset all of that.

"Russia has completely changed its national priorities. Over the past three years, its production has shifted to a wartime economic mode," Tian observed.

The data shows that Russia's production capacity has surged dramatically. From 2022 to 2024, the country's production of 152mm artillery shells increased by 420%, from 250,000 to 1.3 million rounds.

Despite the shortage of high-end electronic components for aircraft due to sanctions, predictions of a collapse of the Russian economy have not materialized. Mr. Tian warned that this transformation is so profound that, if peace is established, Russia will face significant difficulties in returning to a normal civilian economy.

A contrasting picture in Asia and the Middle East.

While Europe and Russia accelerated their production, Asia (the world's third-largest arms producer) was the only region to record a revenue decline (-10%), primarily driven by China.

Conversely, the Middle East recorded a 14% growth with a record presence of 9 companies in the Top 100. Israel continues to lead the region thanks to strong demand for unmanned aerial vehicles (UAVs) and air defense systems.

Türkiye also saw revenue growth, although Baykar (the manufacturer of the Bayraktar UAV) failed to replicate its impressive export performance to Ukraine from the previous period.