The global arms market is a complex and dynamic sector driven by geopolitical tensions, national security priorities, and economic interests. It encompasses the production, sale, and transfer of military equipment, including major conventional weapons (e.g., aircraft, tanks, missiles, and ships) and small arms. The market is shaped by a handful of dominant exporters, evolving importer demands, and shifting global power dynamics.
The global arms trade is a multi-billion-dollar industry, with annual arms transfers estimated at $40–50 billion, though some sources suggest the total value, including small arms and services, may reach $95–200 billion annually. Between 2015–2019 and 2020–2024, the volume of international arms transfers remained relatively stable, but it was 18% higher than in 2005–2009. Key trends include:
The Russia-Ukraine war, starting in 2022, has significantly altered the arms trade. European arms imports surged by 155% from 2015–2019 to 2020–2024, driven by security concerns, while Russia’s exports plummeted due to domestic military needs and sanctions.
Asia and Oceania accounted for 33% of global arms imports in 2020–2024, down from 41%, with major importers like India, Pakistan, Japan and Australia. The Middle East remains a significant market, with Saudi Arabia as a top importer.
While traditional powers dominate, countries like South Korea, Turkey and Italy have seen significant export growth, driven by competitive pricing and niche technologies like drones.
Over 1 billion firearms are in global circulation, with 85% in civilian hands, 13% held by militaries, and 2% by law enforcement. Illegal small arms trade fuels conflicts in unstable regions like Somalia and South Sudan.
The arms trade has been criticized for fueling conflicts and human rights abuses. For instance, arms supplied to the Saudi-led coalition in Yemen have contributed to the world’s worst humanitarian crisis.
The top five arms exporters – United States, France, China and Germany -account for approximately 72% of global arms exports in 2020–2024. Below is a detailed look at each, based on SIPRI’s Trend Indicator Values (TIV), which measure the transfer of military resources rather than financial value.
1. United States (43% of Global Arms Exports)
The United States is the world’s leading arms exporter, with a 43% share of global arms sales in 2020–2024, up from 35% in 2015–2019. It supplied major arms to 107 countries, with key recipients including Saudi Arabia (12%), Ukraine (9.3%), and Japan (8.8%).
Major U.S. defense contractors include Lockheed Martin, Boeing, Raytheon (RTX Corporation), and Northrop Grumman, dominating advanced weaponry like the F-35 Joint Strike Fighter.
U.S. exports surged by 21% from 2015–2019 to 2020–2024, driven by demand for advanced long-range strike capabilities. In 2024, U.S. arms sales to foreign governments reached a record $238 billion. Europe became the largest regional destination (35%), overtaking the Middle East (33%), partly due to support for Ukraine.
Critics argue U.S. arms sales fuel conflicts and human rights abuses, such as in Yemen and Gaza, with insufficient oversight despite laws like the Leahy Law.
2. France (9.6% of Global Arms Exports)
France is the second-largest arms exporter in 2020–2024, with a 9.6% share, up from 7.2% in 2014–2018. It delivered arms to 65 countries, with India (28%), Qatar (9.7%), and Greece (8.3%) as top importers.
Dassault Aviation (Rafale jets), Airbus, and Thales are leading firms. Rafale exports accounted for nearly a third of France’s arms sales.
France’s exports grew by 11% from 2015–2019 to 2020–2024, driven by competitive offerings and fast deliveries. Its focus on non-European markets, particularly India, Egypt, and Qatar, has bolstered its position.
France’s success stems from offering technically attractive systems and competing effectively against Russian alternatives in markets like India.
3. China (5.9% of Global Arms Exports)
China ranks fourth with a 5.9% share of global arms exports in 2020–2024, down slightly from previous years. It exports to countries like Myanmar, Pakistan, and Algeria, with a focus on cost-competitive systems.
State-backed firms like Norinco and AVIC supply aircraft, drones, and armored vehicles. Notable exports include JF-17 aircraft and Type-92 armored vehicles to Myanmar.
China’s exports declined by 5.4% from 2015–2019 to 2020–2024, partly due to quality concerns. However, its lower-cost offerings remain attractive to developing nations, particularly in Africa (19.1% of exports).
China aims to expand its market share through technology transfers and joint ventures, though it lags behind Western exporters in quality and advanced systems.
4. Germany (5.6% of Global Arms Exports)
Germany holds a 5.6% global share, with exports declining slightly in 2020–2024. It supplies a range of systems, including submarines and armored vehicles, to clients like Poland and Ukraine.
Rheinmetall, Krauss-Maffei Wegmann, and ThyssenKrupp Marine Systems are prominent.
Germany’s exports are driven by NATO commitments and support for Ukraine, though its focus remains on European and select global markets.
Strict export controls limit Germany’s market expansion compared to the U.S. or France.
Other notable exporters
Italy (4.8%): Italy’s exports surged by 86% from 2019–2023, focusing on naval systems and aircraft.
United Kingdom (3.6%): The UK, with a 16% share from 2010–2019, focuses on aerospace (88% of exports), with Saudi Arabia as a major buyer.
South Korea (2.2%): Ranked 10th, South Korea’s exports grew by 4.9% from 2015–2019 to 2020–2024, driven by firms like Korea Aerospace Industries and Hanwha Defense. Key markets include the Philippines, India, and Thailand.
Turkey: Turkey’s exports grew by 106% from 2019–2023, driven by drones like the Bayraktar TB2, used in conflicts in Ukraine and Azerbaijan.
Major importers
The top five arms importers in 2020–2024 were Ukraine, India, Saudi Arabia, Pakistan, and Japan, accounting for 35% of global imports.
Ukraine: Became the largest importer due to a nearly 100-fold increase in imports, driven by Western support post-2022.
India: The world’s largest importer, sourcing 28% from France, 38% from Russia, and 11% from the U.S.
Saudi Arabia: A major U.S. client, receiving 12% of U.S. exports, often criticized for use in Yemen.
The arms trade is heavily criticized for exacerbating conflicts and human rights abuses. The Arms Trade Treaty (ATT), in force since 2014, aims to regulate transfers to prevent war crimes, but major exporters like the U.S. and Russia have not ratified it, and compliance remains inconsistent.
Amnesty International and Oxfam highlight the devastating impact of arms on civilians, with conflicts like Yemen and South Sudan fueled by legal and illegal transfers. Additionally, the trade reflects global power dynamics, with the U.S. leveraging its dominance to strengthen NATO and counter China, while emerging exporters like South Korea and Turkey challenge traditional players.
The global arms market remains a critical component of international relations, driven by strategic, economic, and security imperatives. The United States dominates with a 43% share, followed by France, Russia, China and Germany.
Emerging exporters and shifting importer demands, particularly in Europe and Asia, are reshaping the market. However, the trade’s role in fueling conflicts and human rights abuses underscores the need for stronger regulation and accountability.