Global arms sales have increased nearly 5% according to a recently released report
The global arms market experienced a nearly 5% increase in 2018, according to the Stockholm International Peace Research Institute (SIPRI). This growth can be attributed to ongoing armed conflicts and severe tensions in various regions.
The top five arms producing countries in 2018 were the United States, Russia, France, Germany, and China. These five countries accounted for the majority share of global arms exports.
The United States, with a substantial market share, remained the largest supplier, followed by Russia and France. Together, the top 25 arms suppliers accounted for 98% of the total global volume of arms exports during that period.
| Rank | Country | Notes | |-------|------------------|------------------------| | 1 | United States | Largest exporter | | 2 | Russia | Strong second | | 3 | France | Third largest | | 4 | Germany | Fourth largest | | 5 | China | Fifth largest |
The world's largest arms maker, Lockheed Martin, maintained its position with a turnover of $47.3 billion, accounting for 11% of the global arms market.
Meanwhile, Turkey's arms industry saw a significant growth, with two businesses in the top 100, boasting a turnover of $2.8 billion, up 22% compared to the previous year. This growth can be attributed to Turkey's ongoing armed conflict with the Kurds and its aim to be self-sufficient in arms supply. In fact, Turkey bought the S-400 air defense system despite a US threat of sanctions, contributing to its increased demand for arms.
In addition, Russia's Almaz-Antei increased its turnover by 18% to $9.6 billion, mainly due to strong domestic demand and continued growth in arms sales, particularly exports of the S-400 air defense system.
China, which has spent 1.9% of its gross domestic product on defense every year since 2013, also made strides in the arms market. Although SIPRI estimates that there were between three and seven Chinese businesses in the top 100 arms manufacturers, China's exact market share is not fully detailed in the summary.
The global arms sales market reached a turnover of $420 billion in 2018, reflecting the continued demand for arms in turbulent times. The top five arms producing countries, led by the United States, continue to dominate the market, with the United States accounting for 59% of the global arms market.
[1] SIPRI, Arms Industry Report 2020: Military expenditure, arms production and trade, 2019.
Businesses in the technology sector played a crucial role in the growth of the arms industry, with Turkey's arms industry seeing a significant increase due to advancements in their domestic technology. The global arms market, driven by finance and fueled by conflict, relied heavily on technology for its continued growth, as seen in the case of Turkey's arms industry and China's pursuit of self-sufficiency in arms supply.
With technology advancing rapidly, arms manufacturers like Lockheed Martin and Russia's Almaz-Antei have been able to expand their businesses and dominate the global market, as seen in their high turnover figures. The increasing demand for technology-driven arms has made the arms industry an integral part of the broader business and finance landscape.
