Arms industry

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The arms industry, also known as the defense (or defence) industry, military industry, or the arms trade, is a global industry which manufactures and sells weapons and other military technology to a variety of customers, including the armed forces of states and civilian individuals and organizations. Products of the arms industry include weapons, munitions, weapons platforms, communications systems, and other electronics, and related equipment. The arms industry also provides defense-related services, such as logistical and operational support. As a matter of policy, many governments of industrialized countries maintain or support a network of organizations, facilities, and resources to produce weapons and equipment for their military forces (and sometimes those of other countries). This is often referred to as a defense industrial base. Entities involved in arms production for military purposes vary widely, and include private sector commercial firms, state-owned enterprises and public sector organizations, and scientific and academic institutions.^[1] Such entities perform a wide variety of functions, including research and development, engineering, production, and servicing of military material, equipment, and facilities. The weapons they produce are often made, maintained, and stored in arsenals.

In 2024, the Stockholm International Peace Research Institute (SIPRI) estimated global military expenditure at $2.443 trillion, the highest level ever recorded by SIPRI and the steepest year-on-year increase since 2009.^[2] SIPRI further found that the combined revenues of the top 100 largest defense companies totaled $597 billion in 2022, with the five largest companies by revenue being Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics.^[3] SIPRI's data also showed that, between 2019 and 2023, the five largest arms exporting nations were the United States, France, Russia, China and Germany (taken together, they supplied approximately 75% of the world's arms exports during this period).^[4] In some regions of the world, there is a substantial trade in firearms for use by individuals (where such trade is legal, commonly cited purposes include self-defense and hunting/sporting). Trade in small arms, both legal and illegal, may be associated with violent crime and political instability. In 2017, the Small Arms Survey estimated that approximately one billion firearms were in global circulation; of those, 857 million (85%) were possessed by civilians, 133 million (13%) were possessed by national militaries, and 23 million (2%) belonged to law enforcement agencies. The Small Arms Survey also found that the number of firearms in circulation had increased significantly between 2006 and 2017, primarily due to increases in civilian possession.^[5]