In this article, we will look at largest defense contractors in the world by 2022. To skip our detailed review, you can go directly to see the 5 largest defense contractors in the world by 2022.
The world seems to be headed for a recession, despite apparently having averted 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 are focusing on their own economies and trying to ease the lives of the people who live in them, the geopolitical upheaval has made a mockery of the belief that this. In February 2022, Russia launched an unprovoked invasion of Ukraine, which eight months later, is still far from over with heavy losses on both sides, although the latter certainly suffered the worst of it, with thousands of civilians dying and major infrastructure being destroyed by Russia. The West, to counter the growing threat of Russia, united against it despite some disagreements, and supplied Ukraine with arms and aid to defend its territory. Regardless of who wins, the current geopolitical scenario bodes well for the defense contractor industry.
The defense industry is one of the few industries that has emerged unscathed from the pandemic and continues to maintain moderate growth in the US, while delivering significant growth in Europe, according to a PwC report. According to the Stockholm International Peace Research Institute, global military spending set a new record of $2.1 trillion in 2021, and remember, this was before a major war led to significantly higher military spending in 2022 by most countries in the West. Although the industry has not been significantly affected by the pandemic, it is facing some issues especially due to absenteeism of workers and supply chain shortages, after the global supply chain has faced major challenges.
Before the Russian invasion, most military spending was to fight terrorism, especially in the United States and Europe. For other countries such as India and Pakistan, military spending is to ensure preparedness amid rising tensions between the two countries, especially after the Indian Air Force trespassed on Pakistani territory and was shot down by Pakistan. Army. Meanwhile, China also continued to spend heavily on its military, to establish its strength even as relations with the West continued to deteriorate and fighting with India, its neighbor, also occurred. China, along with the United States, dominates the list of the world’s largest defense contractors.
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After the Russian invasion, Western countries’ priorities changed dramatically, returning to Cold War-style priorities; for example, both Finland and Sweden applied for NATO membership after the invasion despite Russian threats. Meanwhile, the United States, realizing the importance of countering Russia’s aggression, has pledged at least $16.9 billion to Ukraine since January 2021, of which $16.2 billion was given after the February invasion. The member states of the European Union have also not held back, providing Ukraine with important weapons and aid, which is a major reason why it has been able to resist Russian aggression until now, and this increase in defense spending is beneficial. benefit to the greatest. world defense contractors in 2022.
According to the Business Research Company, the global defense market grew 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 increase at a CAGR of 3.2% to $581. billion by 2026. To determine the world’s largest defense contractors in 2022, we looked at the Fortune 500 list and the Fortune 500 list. We then ranked each defense company based on revenues, profits, assets and number of its employees, with 40% weightage assigned to the first two criteria and 20% weightage assigned to the last two. So, let’s take a look at the companies most likely to benefit from Russia’s invasion of Ukraine, starting with number 15:
15. Huntington Ingalls Industries, Inc. (NYSE:HII)
Total revenue (in millions of dollars): 9,524
Total revenue (in 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 to the defense sector. 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 of another company on our list, Northrop Grumman.
14. Textron Inc. (NYSE: TXT)
Total revenue (in millions of dollars): 12,382
Total revenue (in millions of dollars): 746
Total assets (in millions of dollars): 15,827
Total number of employees: 33,000
Textron Inc. (NYSE:TXT) was first founded as a textile company about a century ago but is now a major defense company in the United Staes. Textron Inc. (NYSE:TXT) has operations in at least 25 countries. Textron Inc.
13. L3Harris Technologies, Inc. (NYSE:LHX)
Total revenue (in millions of dollars): 17,814
Total revenue (in 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. Among the products offered by L3Harris Technologies, Inc. (NYSE:LHX) is night vision equipment, wireless equipment, C6ISR systems and products, and surveillance solutions. While its earnings declined in 2021, L3Harris Technologies, Inc. still managed to (NYSE:LHX) to improve its operating income.
12. China South Industries Group
Total revenue (in millions of dollars): 44,374
Total revenue (in 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 state-owned Chinese defense companies. It is among the Chinese companies sanctioned by Donald Trump in November 2020.
11. General Dynamics Corporation (NYS:GD)
Total revenue (in millions of dollars): 38,469
Total revenue (in 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 world’s fifth largest defense contractor in 2020 by arms sales alone. While maintaining operations in over 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 sector including but not limited to combat vehicles, communication systems, nuclear powered submarines, tanks and weapons systems.
10. The Boeing Company (NYSE:BA)
Total revenue (in millions of dollars): 62,286
Total revenue (in millions of dollars): -4,202
Total assets (in millions of dollars): 138,522
Total number of employees: 142,000
One of the two defense contractors best known worldwide for their commercial aircraft, The Boeing Company (NYSE:BA) is a major American corporation and the largest exporter to the United States in terms of dollar value. The Boeing Company (NYSE:BA) is involved in the manufacture of satellites, spacecraft, and military aircraft.
9. China Aerospace Science & Industry
Total revenue (in millions of dollars): 40,856
Total revenue (in millions of dollars): -4,202
Total assets (in millions of dollars): 138,522
Total number of employees: 142,000
All of China’s entries on the list of the world’s largest contractors are state-owned companies engaged in the production of strategic and tactical missiles, in addition to ground investment. It is said to be the largest producer of missiles in China.
8. Northrop Grumman Corporation (NYSE:NOC)
Total revenue (in millions of dollars): 35,667
Total revenue (in 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 being a major provider of military technology. Northrop Grumman Corporation (NYSE:NOC) has won the Collier Trophy 8 times. Northrop Grumman Corporation (NYSE:NOC) is known for building the world’s only known stealth bomber, now being replaced by the company’s latest development, the B-21 raider.
7. China Aerospace Science & Technology
Total revenue (in millions of dollars): 43,420
Total revenue (in 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 the Chinese space program, it is also engaged in the production of strategic and tactical missiles, as well as ground equipment.
6. China Electronics Technology Group
Total revenue (in millions of dollars): 55,457
Total revenue (in millions of dollars): 2,152
Total assets (in millions of dollars): 85,806
Total number of employees: 202,561
China Electronics Technology Group provides technological support to China’s military, including communications equipment, IT infrastructure, electronic equipment and software development.
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Disclosure: None. 15 largest defense contractors in the world by 2022 was originally published on Insider Monkey.
