15 Largest Defense Contractors in the World in 2022

In this article, we will be taking a look at the largest defense contractors in the world in 2022.

The world seems to be heading towards a recession, despite being able to seemingly get over a global pandemic due to the early development of a vaccine which saved millions of lives. Inflation has reached recorded highs, and while you may think that most countries would be focused on their own economies and trying to ease the lives of the people living in them, geopolitical upheaval has made a mockery of this belief. In February 2022, Russia initiated an unprovoked invasion of Ukraine, which eight months later, is still no closer to an end with heavy losses to both sides, though the latter has definitely suffered the worst of it, with thousands of civilians dying and major infrastructure being destroyed by Russia. The West, to counter growing Russian threat, has united against it despite some disagreements, and supplied weapons and aid to Ukraine to be able to defend its territory. Regardless of who emerges victorious, the current geopolitical scenario bodes quite well for the defense contractor industry.

The defense industry is one of the few industries to have emerged largely unscathed from the pandemic and has continued to maintain modest growth in the US, while delivering significant growth in Europe, according to a report by PwC. According to the Stockholm International Peace Research Institute, global military spending set a new record of $2.1 trillion in 2021, and remember, this was before a major war which has led to significantly higher military spending in 2022 by most of the Western countries. While the industry wasn’t majorly affected by the pandemic, it did face some issues especially due to worker absenteeism and supply chain shortages, after the global supply chain faced considerable challenges.

Before the Russian invasion, most military spending was to counter terrorism, especially in the United States and Europe. For other countries such as India and Pakistan, military spending is to ensure preparedness amidst rising tensions between the two countries, especially after India’s Air Force transgressed Pakistani territory and was shot down by the Pakistan Army. Meanwhile, China has also continued to spend massively on its military, to establish its might even as relations with the West continue to deteriorate and skirmished with India, its neighbor, have taken place as well. China, along with the United States, dominates the list of the biggest defense contractors in the world.

Photo by Somchai Kongkamsri from Pexels

After Russia’s invasion, priorities of Western nations have changed significantly, reverting more to Cold War style priorities; as an example, both Finland and Sweden have applied for NATO membership after the invasion despite threats by Russia. Meanwhile, the United States, realizing the importance of countering Russian aggression, has pledged at least $16.9 billion to Ukraine since January 2021, of which $16.2 billion have been provided after the invasion in February. The European Union member countries have also not held back, providing important weapons and aid to Ukraine, which is a major reason why it has been able to resist Russia’s invasion to this extent so far, and this increase in defense spending is beneficial to the biggest defense contractors in the world in 2022.

According to the Business Research Company, the global defense market grew from $475 billion in 2021 to $514 billion in 2022, at a CAGR of 8.2%, aided by the Russia Ukraine war, and is expected to increase at a CAGR of 3.2% to $581 billion by 2026. To determine the biggest defense contractors in the world in 2022, we referred the Fortune 500 global list and the Fortune 500 list. We then ranked each defense company based on its revenues, profits, assets and number of employees, with 40% weightage being assigned to the first two criteria and 20% weightage being assigned to the last two. So, let’s take a look at the companies most likely to benefit from the Russian invasion of Ukraine, starting with number 15:

15. Huntington Ingalls Industries, Inc. (NYSE:HII)

Total revenue (in millions of dollars): 9,524

Total profits (in millions of dollars): 544

Total assets (in millions of dollars):  10,627

Total number of employees: 44,000

Huntington Ingalls Industries, Inc. (NYSE:HII) is the biggest military shipbuilder company operating in the United States and also provides additional professional services in the defense sector. Responsible for more ships than any other shipbuilder in U.S. naval history, Huntington Ingalls Industries, Inc. (NYSE:HII) was launched in 2011 as a spin-off of another company in our list, Northrop Grumman.

14. Textron Inc. (NYSE:TXT)

Total revenue (in millions of dollars): 12,382

Total profits (in millions of dollars): 746

Total assets (in millions of dollars):  15,827

Total number of employees: 33,000

Textron Inc. (NYSE:TXT) was initially established as a textile company around a century ago but is now a major defense company in the United Staes. Textron Inc. (NYSE:TXT) has operations in at least 25 countries. Textron Inc.

13. L3Harris Technologies, Inc. (NYSE:LHX)

Total revenue (in millions of dollars): 17,814

Total profits (in millions of dollars): 1,846

Total assets (in millions of dollars):  34,709

Total number of employees: 47,000

L3Harris Technologies, Inc. (NYSE:LHX) was formed in 2019 through the merger of L3 Technologies and Harris Corporation. Among the products offered by L3Harris Technologies, Inc. (NYSE:LHX) are night vision equipment, wireless equipment, C6ISR systems and products, and surveillance solutions. While its revenues decline in 2021, L3Harris Technologies, Inc. (NYSE:LHX) has still managed to improve its operating income.

12. China South Industries Group

Total revenue (in millions of dollars): 44,374

Total profits (in millions of dollars): 737

Total assets (in millions of dollars):  61,762

Total number of employees: 162,498

China South Industries Group is the first of several state-owned Chinese defense companies. It is among the Chinese companies which were sanctioned by Donald Trump in November 2020.

11. General Dynamics Corporation (NYS:GD)

Total revenue (in millions of dollars): 38,469

Total profits (in millions of dollars): 3,257

Total assets (in millions of dollars):  50,073

Total number of employees: 103,100

According to the Stockholm International Peace Research Institute, General Dynamics Corporation (NYS:GD) was the fifth largest defense contractor in the world in 2020 by arm sales alone. While maintain operations in over 45 countries, General Dynamics Corporation (NYS:GD) currently has ten subsidiaries. General Dynamics Corporation (NYS:GD) is the supplier of several products in the defense segment including but not limited to combat vehicles, communication systems, nuclear-powered submarines, tanks and weapon systems.

10. The Boeing Company (NYSE:BA)

Total revenue (in millions of dollars): 62,286

Total profits (in millions of dollars): -4,202

Total assets (in millions of dollars):  138,522

Total number of employees: 142,000

One of two defense contractors more known globally for their commercial aircraft, The Boeing Company (NYSE:BA) is a major American corporation and the biggest exporter in the United States in terms of dollar value. The Boeing Company (NYSE:BA) is involved in the production of satellites, spacecraft, and military aircraft.

9. China Aerospace Science & Industry

Total revenue (in millions of dollars): 40,856

Total profits (in millions of dollars): -4,202

Total assets (in millions of dollars):  138,522

Total number of employees: 142,000

All of China’s entries in the list of the biggest contractors in the world are state-owned companies engaged in the production of strategic and tactical missiles, in addition to ground investment. It is said to be the biggest producer of missiles in China.

8. Northrop Grumman Corporation (NYSE:NOC)

Total revenue (in millions of dollars): 35,667

Total profits (in millions of dollars): 7,005

Total assets (in millions of dollars):  42,579

Total number of employees: 88,000

Northrop Grumman Corporation (NYSE:NOC) is considered to be among the biggest weapons producers in the world, in addition to being a major military technology provider as well. Northrop Grumman Corporation (NYSE:NOC) has won the Collier Trophy 8 times. Northrop Grumman Corporation (NYSE:NOC) is known for producing the world’s only known stealth bomber, which is now being replaced by the company’s latest development, the B-21 raider.

7. China Aerospace Science & Technology

Total revenue (in millions of dollars): 43,420

Total profits (in millions of dollars): 3,099

Total assets (in millions of dollars):  95,825

Total number of employees: 180,521

While its primary dominance comes from being the main contractor for the Chinese space program, it is also engaged in the production of strategic and tactical missiles, as well as ground equipment.

6. China Electronics Technology Group

Total revenue (in millions of dollars): 55,457

Total profits (in millions of dollars): 2,152

Total assets (in millions of dollars):  85,806

Total number of employees: 202,561

The China Electronics Technology Group provides technological support to the Chinese military, including communication equipment, IT infrastructure, electronic equipment and software development.

5. China North Industries Group

Total revenue (in millions of dollars): 81,785

Total profits (in millions of dollars): 1,742

Total assets (in millions of dollars):  76,538

Total number of employees: 213,957

The Chinese state-owned defense company kicks off our top five defense contractors in the world in 2022. Headquartered in Beijing, the unimaginatively named China North Industries Group was established in 1980 and has the highest number of employees of any defense company. The company has often been sanctioned by the United Staes, with the first sanctions being imposed in 1993 and is currently under sanctions imposed by President Trump, which have been continued by President Biden.

4. Airbus

Total revenue (in millions of dollars): 61,658

Total profits (in millions of dollars): 4,981

Total assets (in millions of dollars):  121,712

Total number of employees: 126,495

While its known more for the production of commercial aircraft, Airbus is also the biggest defense contractor in Europe. The multinational corporation entered the defense industry in the 90s. Airbus engages in five segments in the defense sector, namely land, air, sea, space and cyber. The company has also been engaged in the production of fighter aircraft and unmanned aerial systems.

3. Lockheed Martin Corporation (NYSE:LMT)

Total revenue (in millions of dollars): 67,044

Total profits (in millions of dollars): 6,315

Total assets (in millions of dollars):  50,873

Total number of employees: 114,000

Lockheed Martin Corporation (NYSE:LMT) has long been among the biggest defense contractors and has continued to maintain its dominance in the field, recording the highest revenues of any defense company in the United States, and tops the list of US federal government defense contractors, in 2013, it received nearly 10% of all funds disbursed by the Pentagon. Lockheed Martin Corporation (NYSE:LMT) has received the prestigious Collier trophy 6 times. Currently responsible for the development of the F-35 Lightning II, which is considered to be the cornerstone of NATO and the United States military for the next several decades over the course of the 21st century.

2. Aviation Industry Corp. of China

Total revenue (in millions of dollars): 79,322

Total profits (in millions of dollars): 855

Total assets (in millions of dollars):  194,497

Total number of employees: 380,000

The biggest defense contractor in China, the Aviation Industry Corp. of China is a state-owned company which has over a hundred subsidiaries. The company was in the news for negative reasons in 2009, when the Wall Street Journal reported that the Chinese had stolen technology regarding the Joint Strike Fighter program, and the Aviation Industry Corp. of China incorporated this technology in its fighter jets.

1. Raytheon Technologies Corporation (NYSE:RTX)

Total revenue (in millions of dollars): 64,388

Total profits (in millions of dollars): 3,864

Total assets (in millions of dollars):  161,404

Total number of employees: 174,000

While it didn’t top any individual metrics, overall, Raytheon Technologies Corporation (NYSE:RTX) tops the list of the 15 biggest defense contractors in the world. Raytheon Technologies Corporation (NYSE:RTX) is an American company which provides intelligence services in addition to various products, including air defense systems, missiles, satellites, drones, aerostructures and cybersecurity. Formed by the merger of United Technologies and Raytheon Company in 2020, Raytheon Technologies Corporation (NYSE:RTX) is a defense behemoth.

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