Israeli defense cos rise in global ranking

Yesterday, the Stockholm International Peace Research Institute (SIPRI) published its annual ranking, for 2022, of the world’s top 100 arms producers and military services providers The ranking shows that Israeli companies continue to grow. The five top arms companies by revenue are from the US, led by Lockheed Martin. Total revenue actually fell, despite the Russia-Ukraine war.

According to the report, the aggregate revenue of the world’s 100 largest defense companies was $597 billion, 3.5% less than in 2021. The institute explains that although the Russian invasion of Ukraine in February last year boosted demand, the companies were contending with a shortage of manpower, with supply chain difficulties, and rising production costs. Even so, the 42 largest US companies are likely to be concerned at the fact their aggregate revenue fell 7.9% in 2022, to $302 billion. Only two Russian companies make the ranking, and their aggregate revenue was $20.8 billion.

The 22 largest companies in Asia and Oceania saw their aggregate revenue grow by 3.1% to $134 billion, while the aggregate revenue of the European companies in the ranking rose by 0.9%, to $121 billion.

The Israeli companies in the list showed the highest growth rates. Elbit Systems rose from 29th to 24th place in the ranking, with 4% revenue growth to $4.96 billion; Israel Aerospace Industries rose from 38th to 35th, with a 5.5% rise in revenue to $4.1 billion; and Rafael Advanced Defense Systems, which made the largest jump in the ranking, from 46th to 42nd, recorded a 12% rise in revenue, to $3.38 billion.

In revenue growth by country, Israel is in third place behind Italy and India, with 6.5% growth to $12.4 billion. 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%.

One of the greatest compliments to the Israeli defense industry is that its aggregate revenue ($12.4 billion) represents 70% of the $17.9 billion total for the Middle East countries. One Middle East country whose defense industry is making large strides is Turkey, with aggregate revenue of $5.5 billion, and two companies entering the top 100 ranking for the first time: UAV manufacturer Baykar, in 76th place; and missile manufacturer Roketsan, at 100th. Baykar’s revenue soared by 94%, thanks to sales of its Bayraktar TB2 model, which is in service with the Ukrainian army. Even so, the gap between Turkey and Israel remains wide. Turkey’s highest ranking company, ASELSAN, fell from 54th place to 60th, and its revenue was $2 billion, far below that of Rafael, for example.

Published by Globes, Israel business news – en.globes.co.il – on December 5, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.