Iron Dome test (Rafael PR pic)
The Stockholm International Peace Research Institute (SIPRI), released its annual ranking, for 2022, of the world’s top 100 arms producers and military services providers. The Israeli firms Elbit Systems, IAI, and Rafael all moved up on the list.
(The rankings include activities from after the Russian invasion of Ukraine in February 2022.)
To no one’s surprise, the top five defense contractors on the list were American: Lockheed Martin Corp, Raytheon Technologies, Northrop Grumman Corp, Boeing and General Dynamics Corp.
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As for the Israeli firms, Elbit Systems rose from 29th to 24th place in the ranking, with 4% revenue growth to $4.96 billion. Israel Aerospace Industries went from 38th to 35th place, with a 5.5% rise in revenue to $4.1 billion and Rafael Advanced Defense Systems had the highest growth in revenue of 12% to $3.38 billion and rose from 46th to 42nd place in the rankings.
Israel had the third highest rise in total revenue growth by country with 6.5% growth to $12.4 billion, coming in behind Italy and India.
Israel has a 2.1% share of the global defense market. The leaders are the US, with 51%; China – 18%; the UK – 7%; France – 4.4%; and Russia – 3.5%.
SIPRI reported that revenues from sales of arms and military services by the 100 largest companies in the industry worldwide totaled $597 billion in 2022, 3.5 percent less than 2021 in real terms, even as demand rose sharply.
The decrease, explained SIPRI, was “chiefly the result of falling arms revenues among major companies in the United States.”
However, the organization found that revenues increased substantially in Asia, Oceania and the Middle East and reported that outstanding orders and a surge in new contracts suggest that global arms revenues could rise significantly in the next few years.
“Many arms companies faced obstacles in adjusting to production for high-intensity warfare,” said Dr Lucie Béraud-Sudreau, Director of SIPRI’s Military Expenditure and Arms Production Program. “However, new contracts were signed, notably for ammunition, which could be expected to translate into higher revenue in 2023 and beyond.”
SIPRI is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Established in 1966, SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public. Based in Stockholm, SIPRI is regularly ranked among the most respected think tanks worldwide.
