According to the Report “SIPRI TOP 100 ARMSPRODUCING AND MILITARY SERVICES COMPANIES, 2023” released by the Stockholm International Peace Research Institute (SIPRI) on 2nd December 2024,The three companies are – Hindustan Aeronautics Limited (HAL)(43rd), Bharat Electronics Limited (BEL) (67th), and Mazagon Dock Shipbuilders Ltd (MDL) (94th) are placed among the world’s 100 largest arms producers in 2023.
- The all three defense public sector undertakings (DPSUs) combined revenues from sales of arms and military services has increased to USD 6.74 billion in 2023, growing 5.8% from USD 6.37 billion in 2022.
- The top 5 companies in the list belong to United States of America (USA) namely Lockheed Martin (USD 60.81 billion) on the top followed by Raytheon Technologies Corporation (RTX) (USD 40.66 billion) on 2nd spot, Northrop Grumman (USD 35.57 billion) on 3rd, Boeing (USD 31.1 billion) on 4th and General Dynamics (USD 30.2 billion) on 5th spot respectively.
Key Highlights
i.According to the SIPRI report, HAL increased its arms revenue to USD 3.71 billion in 2023, up 6.9% from USD 3.47 billion in 2022.
- BEL gained USD 1.94 billion in 2023, up 0.5% from USD 1.93 billion in 2022 but fell to 67th rank from 65 in 2022.
- MDL’s arms revenue grew 12.4% to USD 1.09 billion in 2023 from USD 0.97 billion in 2022. Its rank also went up to 94 from 96 in 2022.
Top arms-producing and military services companies in the world
| Rank | Name of the Company | Total revenues USD billion |
|---|---|---|
| 1 | Lockheed Martin, USA | 60.81 |
| 2 | RTX, USA | 40.66 |
| 3 | Northrop Grumman Corp, USA | 35.57 |
| 4 | Boeing, USA | 31.1 |
| 5 | General Dynamics Corp, USA | 30.2 |
| 43 | HAL, India | 3.71 |
| 67 | BEL, India | 1.94 |
| 94 | MDL, India | 1.09 |
ii.SIPRI reported that there was a 4.2% rise in FY23 arms revenues for the Top 100 arms producers globally earning a total of USD 632 billion (Rs. 53,54,936 crore), due to increased regional conflicts and rearmament efforts.
iii.The report noted that the arms revenue increases were seen in all regions of the world, with “particularly sharp rises among companies based in Russia and the Middle East (West Asia)”.
- Smaller arms producers in the lower half of the Top 100 adapted more effectively to increased demand linked to Ukraine war, tensions in East Asia, and conflicts in Gaza.
- Around three quarters of companies increased their arms revenues year-on-year. and mostly were in the lower half of the Top 100.
iv.Since 2018, the top five companies in the Top 100 have all been based in the United States (US).
- The 41 companies in the Top 100 based in the US recorded arms revenues of USD 317 billion in 2023, making half of the total arms revenues of the Top 100 and was 2.5% more than in 2022.
- While 30 of these 41 companies increased their arms revenues in 2023, Lockheed Martin and RTX Corporation saw a drop this year.
v.The report showed that the nine China-based companies in the Top 100 saw the smallest year-on-year percentage increase in arms revenues since 2019 at 0.7% reaching USD 103 billion in 2023.
- Chinese arms manufacturers secured the 8th, 9th, and 10th spots among the Top 10 largest firms in the industry.
vi.NCSIST (National Chung-Shan Institute of Science and Technology), the only Taiwan-based company in the Top 100, recorded a 27% increase in its arms revenues to USD 3.2 billion while Türkiye’s Baykar saw an increase of 25% in revenue earning USD 1.9 billion.
vii.The 4 South Korea-based companies recorded a combined 39% increase in arms revenues to reach USD 11 billion and the 5 companies based in Japan saw their combined arms revenues rise by 35% to USD 10 billion.
About Stockholm International Peace Research Institute (SIPRI):
Director – Dan Smith
Headquarters – Solna, Sweden
Founded – 1966
About Hindustan Aeronautics Limited (HAL):
Chairman and Managing Director (CMD)- D.K Sunil
Headquarters – Bengaluru, Karnataka
Founded – 1940
About Bharat Electronics Limited (BEL):
Chairman and Managing Director (CMD)- Manoj Jain
Headquarters – Bengaluru, Karnataka
Founded -1954
About Mazagon Dock Shipbuilders Ltd (MDL):
Chairman and Managing Director (CMD)- Sanjeev Singhal
Headquarters – Mumbai, Maharashtra
Founded – 1934
