Despite the slight drop in arms turnover, production volumes are still high, according to a report by the Stockholm International Peace Research Institute.
Last year, global arms turnover decreased by three and a half percent compared to the previous year. At the same time, however, the war started by Russia in Ukraine has created a greater demand for weapons than before, according to a report by the Stockholm International Peace Research Institute (Sipri).
According to Sipri, it has not been possible to increase international arms production to the required level. The reason has been, for example, a lack of labor, rising prices and disruptions in production chains.
However, according to Sipri, the large order volumes and new arms contracts show that the turnover of the arms industry could increase significantly in the coming years due to the increased demand for arms. Geopolitical tensions increase demand, and in addition, according to Sipri, many countries feel it is necessary, for example, to renew and modernize their armaments.
The United States has the most production
In 2022, the combined turnover of the world’s largest arms manufacturers and military service companies was 597 billion dollars, or about 548 billion euros, according to Sipri. It is three and a half percent less than in 2021. According to Sipri, the decrease is mostly due to the reduction of the Russian and American arms industry.
Despite the slight dip, last year’s arms turnover was still 14 percent higher than in 2015, when Sipri included Chinese arms manufacturers in its listing.
In Sipri’s listing, the five largest arms manufacturers last year were from the United States. Their share was 32 percent of the combined turnover of the world’s weapon manufacturers.
There are a total of 42 arms manufacturers in the United States, whose combined turnover in 2022 was, however, almost eight percent lower than in 2021.
The turnover of Russian arms manufacturers decreased the most of all. The combined turnover of the two Russian manufacturers listed in Sipri decreased by twelve percent in 2022 compared to 2021. According to Sipri, the reason is, for example, the international sanctions against Russia and their effect on both arms production and export.