Sales by the world's top 100 weapons makers surged to a record $679 billion last year, according to new data

NATO partners Japan and South Korea have emerged as two of the global arms industry's fastest-growing markets, the Stockholm International Peace Research Institute (SIPRI) has reported.

Global arms revenues hit a record in 2024 amid rising geopolitical tensions and a rearmament drive across Europe, according to the study published on Monday.

Combined revenues from arms and military services at the world's top 100 producers jumped 5.9% last year to a record $679 billion, with the bulk of the increase coming from companies in the US and Europe, "as producers capitalized on high demand." 

Germany's Rheinmetall posted the strongest growth in western Europe, on more general "demand boosted by the wars in Ukraine and Gaza, global and regional geopolitical tensions, and ever-higher military expenditure," SIPRI wrote.

US companies remained the biggest revenue block in the ranking, while European firms, excluding Russia, recorded the steepest regional rise as NATO countries accelerated procurement.

Japan and South Korea, NATO's Indo-Pacific partners, were among the strongest climbers in the Top 100, the report said, as their arms producers rode surging export orders from Europe alongside growing demand at home.

Sales by Japan's leading defense firms surged 40% year on year to $13.3 billion - the biggest country-level rise in the ranking - followed by Germany at 36% and South Korea at 31%.

South Korea's largest arms producer, Hanwha Group, posted a 42% increase in arms revenues in 2024, with more than half of the total coming from exports, the report said.

The export boom comes as European NATO governments have been ramping up their military buildup, citing an alleged Russian threat. Moscow has denied any aggressive intentions, with President Vladimir Putin describing the speculation as "complete nonsense." 

Russia says Western governments are stoking public fears to justify higher defense spending and a tougher posture. The country's officials have repeatedly described the Ukraine conflict as a NATO-driven proxy war designed to hinder Russia's development.

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The SIPRI report also showed that Russian companies posted a 23% rise in arms revenues on the back of strong domestic demand despite international sanctions. Sales at Chinese firms fell by 10% amid procurement disruptions.