Reference News Network, August 25 - According to the "Nikkei Business Publications" on August 18, as security threats around the world intensify, countries are increasing defense budgets to enhance their deterrent capabilities. The demand for weapons is surging globally. According to data from the Stockholm International Peace Research Institute (SIPRI), global military industry sales have increased by 60% compared to ten years ago.
According to an analysis by the Indian Business Research Insights Company, the size of the military industry will exceed 300 trillion yen (about 2 trillion US dollars) in 2024. It is expected that by 2033, this industry will surpass 500 trillion yen, equivalent to the current size of the automotive industry.
Globally, there are many major players in the military industry.
The largest military company in the world is the American company Lockheed Martin. It produces the main fighter jet F-35 for the U.S. military and the Japan Air Self-Defense Force. As of July 31, the company has delivered more than 1,200 F-35s to various countries. This fighter jet has stealth performance that is difficult for enemy radars to detect, as well as advanced sensors, and the number of countries introducing this fighter jet continues to increase.
In recent years, Lockheed Martin has expanded its business into space, cyber, and artificial intelligence development areas. On June 26, the company announced the acquisition of space surveillance businesses of the emerging military enterprise Artemis, which ranks 21st globally and is strong in new fields. Through mergers and acquisitions, Lockheed Martin is fully committed to weapon development.
Data from SIPRI shows that the top five companies in terms of sales related to the military industry in 2023 were all American companies. In addition, BAE Systems, a British company collaborating with Japan in the next-generation fighter jet development project, ranked 6th, and Leonardo, an Italian company, ranked 13th. These are top European enterprises.
Mitsubishi Heavy Industries, Japan's largest military company, only ranked 39th, showing the gap in scale compared to overseas companies. Among America's allies in Asia, South Korea is rapidly growing through arms exports. Hanwha Group rose from 42nd to 24th in 2023, far ahead of Mitsubishi Heavy Industries.
Russian state-owned military enterprise Rostec ranks 7th, with sales increasing by 30% compared to 2022. With the prolonged situation of the Russia-Ukraine war, the company has increased domestic weapon production.
Chinese companies occupy the 8th to 10th positions in the global sales ranking.
Currently, the United States is urging its allies to strengthen their own defense capabilities. Many countries are eager to increase defense budgets, but many of them do not have the ability to produce independently. It is expected that in the short term, orders will continue to concentrate on existing military companies.
The weapons market, which was dominated by the United States and the Soviet Union/Russia since the Cold War, is changing.
American companies dominate the military industry market with high technical strength, but they also face frequent problems. The delivery dates of F-35s to countries' armies are often delayed. Quality management issues at aviation giant Boeing remain a concern.
Some people believe that part of the reason is the decline in the strength of the American manufacturing base. The decline in the shipbuilding industry is even more severe. The progress of the U.S. Navy frigates built in 2022 is behind the original plan, and it seems they will not be commissioned until 2029.
Revitalizing manufacturing has become a key issue for President Trump. He said about the missile defense system he pushed for, "I hope everything is made domestically in the United States."
Due to the Russia-Ukraine war, the domestic demand for weapons in Russia is also increasing. Countries that originally used Russian weapons have begun to purchase from other countries. European military companies are also accelerating production, but they have been affected by the shrinking production scale that has continued since the end of the Cold War.
Against this background, Asian military companies are receiving attention.
After the end of the Cold War, South Korea maintained the production capacity of ground weapons. Hanwha Group, in order to become a comprehensive military company covering all fields of land, sea, and air, acquired a large Korean shipbuilding company. At the same time, it is also pushing for the acquisition of American shipbuilding companies, contributing to the revival of American manufacturing.
Elbit Systems of Israel is expanding its overseas markets by leveraging the advantages of drones. Singapore Technologies Engineering Limited announced that it signed a contract worth 10 million Singapore dollars (about 7.8 million US dollars) in 2024 to supply shells to Europe.
In order to foster the military industry, Japan revised the "Three Principles on Weapons Exports" established since 1967 in 2014, and then promoted exports. A official from the Defense Equipment Agency said, "First, we hope to create momentum to enter the defense industry supply chain of Europe and the United States." (Translated by Liu Jieqiu)

Lockheed Martin logo (AP photo)
Original article: https://www.toutiao.com/article/7542337271559750207/
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