US Leads Global Defense Revenues to Record Highs — but Vulnerabilities Are Emerging
Global defense revenues hit unprecedented highs, with the US still anchoring the industry—but procurement delays, supply-chain fragility, and workforce constraints are exposing vulnerabilities beneath the surface. Europe is rapidly scaling output, Russia remains unexpectedly resilient.
The global defense sector just closed out its most lucrative year in modern history, with total revenues pushing into the upper-$600B range. The United States remains the undisputed center of gravity in military industrial output—but the story isn’t as one-dimensional as simple dominance. Beneath the surface, there are structural weaknesses that will define capability in the next decade.
Companies like Lockheed Martin, RTX and Northrop Grumman continue to anchor the global defense export ecosystem, benefiting from scale, industrial depth, strong government pipeline orders, and long-cycle weapons programs.
That said — U.S. procurement remains plagued by inflated timelines and runaway budgets. Flagship programs frequently encounter delays, affecting how fast new capabilities transition from factory floors into active service. When the backbone systems lag — everything else downstream is delayed too.The U.S. still leads the industry, but not at maximum efficiency.
Europe scales manufacturing to close the gap
European companies are expanding output with urgency, driven primarily by:
- the war in Ukraine
- NATO strategic readiness
- the perceived threat from Russia
Most firms across the continent are logging double-digit revenue growth in weapons production. The difference is philosophical: Europe is moving toward industrial mobilization, rather than incremental procurement.
European companies are investing in:
- new production lines
- automation
- domestic component sourcing
- EU-based supply networks
Their challenge is not funding—it's raw production speed.
