The United States continued to dominate the list of the world’s top 100 arms and military services companies, accounting for 51 percent of the sector’s $597 billion revenue in 2022.
According to new data from the Stockholm International Peace Research Institute, the 42 U.S. defense companies on the list saw supply chain, labor shortage and other production challenges trim their 2022 revenues by 7.9 percent to $302 billion.
The institute said the total global revenue dropped by 3.5 percent from 2021, despite a sharp rise in demand.
Nan Tian, SIPRI senior researcher, indicated that the Ukraine war triggered an inflow of new orders for some major U.S. companies, such as Lockheed Martin and Raytheon Technologies. However, with current order backlogs and stymied production capacity, it will take two to three years before revenue from the new orders reflects on the companies’ books.
In contrast to the U.S. arms sales drop, the 2022 revenues of 22 defense companies in Asia and Oceania rose 3.1 percent to $134 billion amid military modernization drives in the region. For the second consecutive year, Asia also outperformed Europe, which had 26 companies pitching in a 0.9 percent sales increase to $121 billion in 2022.