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© boeing - for illustrative purposes only Analysis | December 16, 2016

Global arms industry: USA remains dominant despite decline

Sales of arms and military services by the largest arms-producing and military services companies – the SIPRI Top 100 – totalled USD 370.7 billion in 2015 according to SIPRI.
The sales of arms and military services companies in the SIPRI Top 100 have fallen for the fifth consecutive year. However, at only a 0.6 per cent decline, the slight decrease may signal a possible reversal of the downward sales trend observed since 2011.

US companies still way ahead despite falling revenues

Companies based in the United States continue to dominate the Top 100 with total arms sales amounting to USD 209.7 billion for 2015. Arms sales by US companies in the Top 100 decreased by 2.9 per cent compared with 2014 – the fifth consecutive year of decline.

‘Lockheed Martin remains the largest arms producer in the world,’ says Aude Fleurant, Director of SIPRI’s Arms and Military Expenditure Programme. ‘However, US companies’ arms sales are constrained by caps on US military spending, delays in deliveries of major weapon systems and the strength of the US dollar, which has negatively affected export sales.’

Many of the larger US arms-producing companies divested their military services activities after 2010 due to falling demand. A number of the new, smaller companies created by this process have consolidated and have built up sufficient revenue to rank in the Top 100 for 2015; three such companies are CSRA, Engility and Pacific Architects and Engineers.

List of the US companies
1Lockheed Martin Corp41CSRA
2BoeingBell Helicopter Textron
4Raytheon42Hewlett–Packard
5Northrop Grumman Corp.44General Atomics
6General Dynamics Corp.56Orbital ATK
BAE Systems Inc.57ManTech International Corp.
8United Technologies Corp.59GenCorp
10L-3 Communications61Vectrus
12Huntington Ingalls Industries62Jacobs Engineering Group
15Harris Corp.64Engility
18Bechtel Corp.70DynCorp International
Pratt & Whitney74Oshkosh Corp.
20Booz Allen Hamilton77Triumph Group
21Textron82Cubic Corp.
23Honeywell International83Moog
26Leidos84Fluor Corp.
Sikorsky Aircraft Corp.86The Aerospace Corp.
27General Electric89Teledyne Technologies
31Science Applications International Corp.90MIT
34CACI International91Alion Science & Technology
38Rockwell Collins99Pacific Architects and Engineers
40AECOM

West European arms sales up in 2015 after falls in 2014

Arms sales by companies in Western Europe listed in the SIPRI Top 100 for 2015 rose by 6.6 per cent in real terms compared with 2014, with total combined revenues from arms sales amounting to USD 95.7 billion. This increase contrasts with the notable drop in West European companies’ revenues from arms sales recorded between 2013 and 2014.

The combined arms sales of the six French companies listed in the Top 100 totalled USD 21.4 billion in 2015, a rise of 13.1 per cent compared with 2014, when most of those companies recorded a fall in arms sales.

‘Major arms export deals in 2015, such as those to Egypt and Qatar, have increased French arms companies’ sales,’ says Fleurant. ‘A 67.5 per cent surge in arms sales by Dassault Aviation Group seems to be mainly the result of such exports.’

The three German companies listed in the Top 100 continued to increase their combined sales (by 7.4 per cent) in 2015. Companies in the Top 100 based in the United Kingdom reversed the downward trend recorded in 2014 with a 2.8 per cent rise in their combined arms sales in 2015.

List of the European companies
3BAE SystemsAlenia Aermacchi
7Airbus Group55Serco
9Finmeccanica58Fincantieri
11Thales60Polish Armaments Group
14Safran63Nexter
16Rolls-Royce73GKN
22Babcock International Group75QinetiQ
24DCNS79Pilatus Aircraft
MBDA80Meggitt
AgustaWestland85Krauss-Maffei
30Rheinmetall87RUAG
33Saab93Kongsberg Gruppen
45CEA94AirTanker
46ThyssenKrupp95Ultra Electronics
47Dassault Aviation Group97CMI Groupe
Selex ES3

Continued growth in sales by the Russian arms industry

The combined arms sales of the 11 Russian companies in the 2015 Top 100 reached USD 30.1 billion, representing 8.1 per cent of the total Top 100 arms sales for 2015 and an increase of 6.2 per cent compared with 2014. Ten out of the 11 companies listed have increased their arms sales in 2015.

13Almaz-Antey50United Engine Corp.
17United Aircraft Corp.51KRET
19United Shipbuilding Corp.UMPO
24Russian Helicopters66Uralvagonzavod
35Tactical Missiles Corp.Admirality Shipyards
48United Instrument Manufacturing98RTI Group
49High Precision Systems

South Korea leading the rise of emerging producers in the Top 100

The significant growth in emerging producers’ arms sales is mostly attributable to South Korean companies, which increased sales by 31.7 per cent in 2015.
28Mitsubishi Heavy Industries (Japan)69ASELSAN (Turkey)
29Elbit Systems (Israel)71Hanwha Corp. (South Korea)
32Israel Aerospace Industries (Israel)72Austal (Australia)
36Hindustan Aeronautics (India)76Mitsubishi Electric Corp. (Japan)
37Kawasaki Heavy Industries (Japan)78Turkish Aerospace Industries (Turkey)
39Indian Ordnance Factories (India)81UkrOboronProm (Ukraine)
52LIG Nex1 (South Korea)88Embraer (Brazil)
53ST Engineering (Singapore)92CAE (Canada)
54Korea Aerospace Industries (South Korea)96Poongsan Corp. (South Korea)
65Hanwha Techwin (South Korea)100Hanwha Thales (South Korea)
67DSME (South Korea)
68Bharat Electronics (India)

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