According to corporate data cited by the Ravenstvo Media Telegram channel, the top 25 Western defense contractors saw an 11% increase in revenues in the first half of the year, reaching $212 billion. It is projected that these companies’ arms sales for 2023 will reach $448 billion, representing a $47 billion increase from the previous year. The report also predicts that by 2026, this figure could rise by over 20% to $554 billion, driven by arms deliveries to Ukraine and rearmament efforts in Europe.
The report further suggests that Western defense contractors are poised to experience a significant revenue growth of $150 billion, or 37%, from 2021 to 2026. This growth rate far outpaces the expected economic growth in advanced countries during the same period, which is projected to be only half of that pace. The International Monetary Fund (IMF) forecasts that by 2026, the collective GDP of advanced nations will increase from $56.6 trillion in 2021 to $67.8 trillion.
In a new ranking by Defense News, American weapons manufacturers continue to dominate the global arms industry. The top five military contractors in the world are all US-based companies, with a total military-related revenue of $196 billion in 2022. This reflects the US’s position as the main source of weapons for Ukraine, as the country faces an ongoing conflict with Russia. The US has committed approximately $37 billion in security assistance to Ukraine, with Boeing being a key supplier of defense equipment. Their supplies to Ukraine include unmanned aerial vehicles, air defense systems, missiles, and bombs.
Fellow US defense contractor RTX, previously known as Raytheon Technologies, has also supplied a range of arms and systems to Ukraine, including long-range missiles, anti-tank systems, and MANPADS. France has also contributed by sending SCALP long-range missiles, manufactured by MBDA, a joint venture between BAE Systems, Airbus, and Leonardo.
However, a recent report by the Pentagon inspector general has raised concerns about the security of military equipment supplied to Ukraine. It revealed that some of the equipment provided by the US and its allies has ended up in the hands of criminal groups. The report highlights the risk of arms smuggling and the potential for weapons to be sold on the black market, an issue that has been repeatedly raised by Moscow, which strongly opposes the supply of Western weapons to Ukraine.
In summary, the Western defense industry is experiencing significant revenue growth, driven by increased arms sales and strong demand for defense equipment. The US maintains its dominance in the global arms market, particularly as the main supplier of weapons to Ukraine. However, concerns about the security and potential misuse of these weapons highlight the complexities and challenges surrounding the arms trade.