In this article, we look at the largest weapon manufacturer in the world. If interested, you can also view our recently released complete list of the 15 Largest Weapon Manufacturers in the World.
Latest figures released by the Stockholm International Peace Research Institute (SIPRI) in April this year estimated the global military spending in 2023 at a record-high of $2.44 trillion, up 6.8% compared to 2022. The year witnessed the steepest rise in defense expenditure since 2009, and was the ninth successive year in which defense spending had increased worldwide.
The United States continued to remain the largest spender on military expenditure in 2023 as well, having incurred a whopping $916 billion in defense bills during the year, growing 2.3% from last year. Washington’s spending represented 37.5% of the world’s military expenditure, and accounted for 68% of all NATO spending. $588 billion was spent by countries in Europe, which was equivalent to 24% of the global share. Of this amount, an overwhelming 69% was expensed in Central and Western Europe. Both Russia and Ukraine substantially increased their military expenditure during the year, whereas other countries in the region actively racked up their defenses as well with war having returned to the continent after decades of peace.
Another report by SIPRI highlighted that arms imported by countries in Europe between 2019-2023 were 94% higher than the monetary volume in 2014-2018. The United States was the origin of an estimated 55% of all weapons received by Europe, making the country the largest exporter of arms in the world.
The spike in defense expenditure has resulted in a boom in the defense industry. Lockheed Martin Corporation (NYSE:LMT)’s stock price has surged 29% since the start of the war in Ukraine. Several countries in Europe are eying the company’s famed F-35 fifth-generation fighter, while the production of HIMARS is also in full swing to replenish stocks of allies arming Kyiv. This month, the US Army awarded a $861 million contract to Lockheed Martin Corporation (NYSE:LMT) for the supply of additional HIMARS, believed to be linked to military assistance for Ukraine. According to the Defense Post, the contract did not specify the number of launchers ordered, but is expected to be around 288 based on previous solicitation documents that were seen.
RTX Corporation (NYSE:RTX)’s numbers have also been promising, having posted $68.9 billion in revenue in 2023, with a year-on-year growth of 3%, aided by the ongoing conflict in Europe. Between February 2022, when the war started, and October 2023, the company had received orders worth $3 billion for its AMRAAM rockets alone to assist Ukraine in pushing back advancing Russian troops. Earlier last year in March, RTX Corporation (NYSE:RTX) also won a $1.2 billion contract from Germany to build Patriot air and missile defense systems for the country and boost its air defenses, while in November, Hungary received the delivery of two units of the NASAMS air defense system it had ordered from Kongsberg Defence & Aerospace and RTX Corporation (NYSE:RTX).
On the other hand, General Dynamics Corporation (NYSE:GD) too posted its highest-ever revenue in history last year, totaling $42.3 billion, up 7.7% from the previous year. The company has reported an increase in its artillery production from 14,000 rounds per month to 20,000. The company’s 155 millimeter artillery replacements have played a vital role in Kyiv’s fightback against Russia, which have been regularly provided to the country as part of military assistance by the United States.
With that said, let’s take a look at the largest weapon manufacturer in the world.
Methodology
To compile the list, we ranked the largest weapon manufacturers in the world in ascending order of their arms revenue in 2022. This is the latest year for which revenue breakdown is available for all major defense companies in the world. Data has been sourced from the Stockholm International Peace Research Institute (SIPRI).
The largest weapon manufacturer in the world is Lockheed Martin Corporation (NYSE:LMT).
1. Lockheed Martin Corporation (NYSE:LMT)
Country of Origin: United States
Total Revenue in 2022: $65.98 billion
Arms Revenue in 2022: $59.39 billion
Share of Overall Revenue: 90%
Lockheed Martin Corporation (NYSE:LMT) is the largest weapon manufacturer in the world, with over $59 billion worth of arms revenue in 2022 – three-fourths of which came from over $45 billion in DoD contracts. It is the manufacturer of the famed F-35 fifth-generation fighter jet, and the company is likely to retain its status as a cornerstone for the US Air Force as it works alongside other partners in the industry on the Next Generation Air Dominance (NGAD) program to build a sixth-generation fighter.
You can see the rest of the rankings here.
If you are looking for states where the US military spends the most funds, you can head over to our article on the Top 20 States Where the US Military Spends the Most Money.
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Disclosure: None. This article is originally published on Insider Monkey.
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