In this article, we will take a look at the largest defense contractors in the world in 2022. To skip our detailed analysis, you can go directly to the 5 largest defense contractors in the world in 2022.
The world appears to be heading into a recession, despite apparently being able to ride out a global pandemic thanks to the early development of a vaccine that saved millions of lives. Inflation has reached record highs, and while you might think that most countries would focus on their own economies and try to make life easier for the people living there, geopolitical upheaval has made a mockery of that belief. In February 2022, Russia launched an unprovoked invasion of Ukraine, which eight months later is still nowhere near an end with heavy casualties on both sides, although the latter has certainly suffered the worst. , with thousands of dead civilians and major infrastructure. be destroyed by Russia. The West, to counter the growing Russian threat, united against it despite some disagreements, and provided arms and aid to Ukraine to be able to defend its territory. Whoever wins, the current geopolitical scenario bodes well for the defense industry.
The defense industry is one of the few industries to emerge largely unscathed from the pandemic and has continued to maintain modest growth in the United States, while recording significant growth in Europe, according to a PwC report. According to the Stockholm International Peace Research Institute, global military spending set a new record high of $2.1 trillion in 2021, and remember, that was before a major war that caused a significant increase military spending in 2022 by most Western countries. Although the industry has not been primarily affected by the pandemic, it has faced some challenges including worker absenteeism and supply chain shortages, after the supply chain world has faced considerable challenges.
Prior to the Russian invasion, most military spending was directed at fighting terrorism, especially in the United States and Europe. For other countries such as India and Pakistan, military spending is aimed at ensuring preparedness for rising tensions between the two countries, particularly after the Indian Air Force breached Pakistani territory and was shot by the Pakistani army. Meanwhile, China has also continued to spend heavily on its military, to cement its power even as relations with the West continue to deteriorate and skirmishes with neighboring India have also taken place. China, along with the United States, dominates the list of the largest defense contractors in the world.
Photo by Somchai Kongkamsri from Pexels
After the invasion of Russia, the priorities of Western nations changed dramatically, reverting more to Cold War-style priorities; for example, Finland and Sweden applied for NATO membership after the invasion despite threats from Russia. Meanwhile, the United States, aware of the importance of countering Russian aggression, has pledged at least $16.9 billion to Ukraine since January 2021, of which $16.2 billion has been provided after the February invasion. The member countries of the European Union also did not hold back, providing significant arms and aid to Ukraine, which is one of the main reasons that it was able to resist the invasion of Russia. so far, and this increase in defense spending benefits the largest defense contractors in the world in 2022.
According to the Business Research Company, the global defense market has grown from $475 billion in 2021 to $514 billion in 2022, at a CAGR of 8.2%, helped by the Russia-Ukraine war, and is expected to grow at a CAGR of 3.2% at $581. billion by 2026. To determine the largest defense contractors in the world in 2022, we referred to the global Fortune 500 list and the Fortune 500 list. We then ranked each defense company according to its revenues, profits, assets and number of employees, a weighting of 40% being attributed to the first two criteria and a weighting of 20% being attributed to the last two. So let’s take a look at the companies most likely to benefit from the Russian invasion of Ukraine, starting with number 15:
15. Huntington Ingalls Industries, Inc. (NYSE:HII)
Total revenue (millions of dollars): 9,524
Total profits (millions of dollars): 544
Total assets (in millions of dollars): 10,627
Total number of employees: 44,000
Huntington Ingalls Industries, Inc. (NYSE: HII) is the largest military shipbuilding company operating in the United States and also provides additional professional services in the defense industry. Responsible for more ships than any other shipbuilder in US naval history, Huntington Ingalls Industries, Inc. (NYSE:HII) was launched in 2011 as a spin-off from another company on our list, Northrop Grumman .
14. Textron Inc. (NYSE:SMS)
Total revenue (millions of dollars): 12,382
Total profits (millions of dollars): 746
Total assets (in millions of dollars): 15,827
Total number of employees: 33,000
Textron Inc. (NYSE:TXT) was originally founded as a textile company about a century ago, but is now a major defense company in the United States. Textron Inc. (NYSE: TXT) is present in at least 25 countries. textron inc.
13. L3Harris Technologies, Inc. (NYSE:LHX)
Total revenue (millions of dollars): 17,814
Total profits (millions of dollars): 1,846
Total assets (in millions of dollars): 34,709
Total number of employees: 47,000
L3Harris Technologies, Inc. (NYSE: LHX) was formed in 2019 through the merger of L3 Technologies and Harris Corporation. Products offered by L3Harris Technologies, Inc. (NYSE: LHX) include night vision equipment, wireless equipment, C6ISR systems and products, and surveillance solutions. While its revenue declines in 2021, L3Harris Technologies, Inc. (NYSE: LHX) still managed to improve its operating profit.
12. South China Industries Group
Total revenue (millions of dollars): 44,374
Total profits (millions of dollars): 737
Total assets (in millions of dollars): 61,762
Total number of employees: 162,498
China South Industries Group is the first of several Chinese state-owned defense companies. It is among the Chinese companies that were sanctioned by Donald Trump in November 2020.
11. General Dynamics Corporation (NYS:GD)
Total revenue (millions of dollars): 38,469
Total profits (millions of dollars): 3,257
Total assets (in millions of dollars): 50,073
Total number of employees: 103,100
According to the Stockholm International Peace Research Institute, General Dynamics Corporation (NYS:GD) was the fifth largest defense contractor in the world in 2020, in terms of arms sales alone. While maintaining operations in more than 45 countries, General Dynamics Corporation (NYS: GD) currently has ten subsidiaries. General Dynamics Corporation (NYS:GD) is the supplier of several products in the defense segment, including but not limited to combat vehicles, communication systems, nuclear powered submarines, tanks and weapon systems.
10. The Boeing Company (NYSE:BA)
Total revenue (millions of dollars): 62,286
Total profits (millions of dollars): -4,202
Total assets (in millions of dollars): 138,522
Total number of employees: 142,000
One of the world’s two best-known defense contractors for their commercial aircraft, The Boeing Company (NYSE:BA) is a major US corporation and the largest exporter to the United States by dollar value . The Boeing Company (NYSE: BA) is involved in the production of satellites, spacecraft and military aircraft.
9. Chinese aerospace science and industry
Total revenue (millions of dollars): 40,856
Total profits (millions of dollars): -4,202
Total assets (in millions of dollars): 138,522
Total number of employees: 142,000
All of China’s entries in the list of the world’s largest contractors are state-owned enterprises engaged in the production of strategic and tactical missiles, in addition to ground investments. It is said to be the largest missile producer in China.
8. Northrop Grumman Corporation (NYSE:NOC)
Total revenue (millions of dollars): 35,667
Total profits (millions of dollars): 7,005
Total assets (in millions of dollars): 42,579
Total number of employees: 88,000
Northrop Grumman Corporation (NYSE:NOC) is considered one of the largest arms producers in the world, in addition to also being a major supplier of military technology. Northrop Grumman Corporation (NYSE: NOC) has won the Collier Trophy 8 times. Northrop Grumman Corporation (NYSE: NOC) is known for producing the world’s only known stealth bomber, which is now superseded by the company’s latest development, the B-21 raider.
7. Chinese Aerospace Science and Technology
Total revenue (millions of dollars): 43,420
Total profits (millions of dollars): 3,099
Total assets (in millions of dollars): 95,825
Total number of employees: 180,521
While its main dominance comes from being the main contractor for China’s space program, it is also engaged in the production of strategic and tactical missiles, as well as ground equipment.
6. China Electronic Technology Group
Total revenue (millions of dollars): 55,457
Total profits (millions of dollars): 2,152
Total assets (in millions of dollars): 85,806
Total number of employees: 202,561
The China Electronics Technology Group provides technological support to the Chinese military, including communications equipment, IT infrastructure, electronic equipment and software development.
Click to continue reading and see the 5 The world’s largest defense contractors in 2022.
See also:
Disclosure: none. 15 largest defense contractors in the world in 2022 is originally published on Insider Monkey.
Comments are closed.