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The arms industry, also known as the arms trade, is a global
industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or services. For example, one might refer to the wood industry ...
which
manufactures Manufacturing is the creation or production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (g ...
and sells
weapon A weapon, arm or armament is any implement or device that can be used with the intent to inflict physical damage or harm. Weapons are used to increase the efficacy and efficiency of activities such as hunting Hunting is the practice of see ...
s and
military technology Military technology is the application of technology Technology ("science of craft", from Ancient Greek, Greek , ''techne'', "art, skill, cunning of hand"; and , ''wikt:-logia, -logia'') is the sum of any Art techniques and materials, techn ...
, and is a major component of the
military–industrial complex The expression military–industrial complex (MIC) describes the relationship between a country's military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare ...
. It consists of a
commercial Commercial may refer to: * a dose of advertising conveyed through media (such as - for example - radio or television) ** Radio advertisement ** Television advertisement * (adjective for:) commerce, a system of voluntary exchange of products and se ...

commercial
industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or services. For example, one might refer to the wood industry ...
involved in the
research and development Research and development (R&D, R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products and improving existing o ...
,
engineering Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more specializ ...

engineering
, production, and servicing of
military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare War is an intense armed conflict between State (polity), states, governments, Society, societies, or pa ...

military
material, equipment, and facilities. Arms-producing companies, also referred to as arms dealers, or as the military industry, produce arms for the
armed forces A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare War is an intense armed conflict between State (polity), states, governments, Society, societies, or para ...
of
states State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, Un ...
and for civilians. Departments of government also operate in the arms industry, buying and selling weapons, munitions and other military items. An
arsenal The Royal Armoury, Leeds An arsenal is a place where arms and ammunition Ammunition (informally ammo) is the material fired, scattered, dropped or detonated from any weapon or weapon system. Ammunition is both expendable weapons (e ...

arsenal
is a place where arms and ammunition - whether privately or publicly owned - are made, maintained and repaired, stored, or issued, in any combination. Products of the arms industry include
gun A gun is a designed to use a shooting tube () to launch typically solid s, but can also project pressurized (e.g. s/s, s for or , , and technically also s), (e.g. ) or even s (e.g. ). Solid projectiles may be free-flying (as with and s ...

gun
s,
artillery Artillery is a class of heavy military ranged weapons built to launch Ammunition, munitions far beyond the range and power of infantry firearms. Early artillery development focused on the ability to breach defensive walls and fortifications dur ...

artillery
,
ammunition Ammunition (informally ammo) is the material fired, scattered, dropped or detonated from any weapon or weapon system. Ammunition is both expendable weapons (e.g., bombs, missiles, grenades, land mines) and the component parts of other weapon ...

ammunition
,
missile In military terminology, a missile is a missile guidance, guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles are thus also called guided missiles or guided rockets (when in rocket f ...
s,
military aircraft A military aircraft is any Fixed-wing aircraft, fixed-wing or rotorcraft, rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat: * Combat aircraft are ...
,
military vehicle A military vehicle is a type of vehicle A vehicle (from la, vehiculum) is a machine that transport Transport (commonly used in the U.K.), or transportation (used in the U.S.), is the Motion, movement of humans, animals and cargo, good ...

military vehicle
s,
ship A ship is a large watercraft that travels the world's oceans and other sufficiently deep Sea lane, waterways, carrying goods or passengers, or in support of specialized missions, such as defense, research, and fishing. Ships are generally disti ...
s, electronic systems, night-vision devices,
holographic weapon sight A holographic weapon sight or holographic diffraction sight is a non- magnifying gunsight that allows the user to look through a glass optical window and see a holographic reticle scope of a Russian Dragunov sniper rifle, SVD designated marksm ...
s,
laser rangefinder and elevation The elevation of a geographic location (geography), location is its height above or below a fixed reference point, most commonly a reference geoid, a mathematical model of the Earth's sea level as an equipotential gravitational eq ...
s,
laser sight Many scientific, military, medical and commercial laser applications have been developed since the invention of the laser A laser is a device that emits light Light or visible light is electromagnetic radiation within the portion ...
s,
hand grenades A grenade is an explosive weapon typically thrown by hand A hand is a prehensile, multi- fingered appendage located at the end of the forearm The forearm is the region of the upper limb between the Elbow-joint, elbow and the wrist. The ...
,
landmines A land mine is an explosive weapon, explosive device concealed under or on the ground and designed to destroy or disable enemy targets, ranging from combatants to vehicles and tanks, as they pass over or near it. Such a device is typically de ...
and more. The arms industry also provides other logistical and operational support. The
Stockholm International Peace Research Institute Stockholm International Peace Research Institute (SIPRI) is an international institute An institute is an organisation An organization, or organisation ( Commonwealth English; see spelling differences), is an entity – such as a co ...
(SIPRI) estimated military expenditures at $1822 billion. This represented a relative decline from 1990, when military expenditures made up 4% of world
GDP Gross domestic product (GDP) is a monetary In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner">174x174px Money is any ...
. Part of the money goes to the procurement of military hardware and services from the military industry. The combined arms-sales of the top 100 largest arms-producing companies and military services companies (excluding China) totaled $420 billion in 2018, according to SIPRI. This was 4.6 percent higher than sales in 2017 and marks the fourth consecutive year of growth in Top 100 arms sales. In 2004 over $30 billion were spent in the international arms-trade (a figure that excludes domestic sales of arms). According to the institute, the volume of international transfers of major weapons in 2014–18 was 7.8 percent higher than in 2009–13 and 23 percent higher than in 2004–2008. The five largest exporters in 2014–18 were the United States, Russia, France, Germany and China whilst the five biggest importers were Saudi Arabia, India, Egypt, Australia and Algeria. Many
industrialized countries Image:Imf-advanced-un-least-developed-2008.svg, 450px, Classifications by the International Monetary Fund, IMF and the United Nations, UN in 2008.A developed country, industrialized country (or post-industrial country), more developed countr ...
have a domestic arms-industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by their own citizens, primarily for self-defense, hunting or sporting purposes. Illegal trade in small arms occurs in many countries and regions affected by
political instability A failed state is a political body that has disintegrated to a point where basic conditions and responsibilities of a sovereign Sovereign is a title which can be applied to the highest leader in various categories. The word is borrowed from Old ...
. The
Small Arms SurveyThe Small Arms Survey is an independent research project located at the Graduate Institute of International and Development Studies in Geneva , neighboring_municipalities= Carouge, Chêne-Bougeries, Cologny, Lancy, Grand-Saconnex, Pregny-Chamb ...
estimates that 875 million small arms circulate worldwide, produced by more than 1,000 companies from nearly 100 countries. Governments award contracts to supply their country's military; such arms contracts can become of substantial political importance. The link between politics and the arms trade can result in the development of what
U.S. President The president of the United States (POTUS) is the head of state A head of state (or chief of state) is the public persona who officially embodies a state (polity), state#Foakes, Foakes, pp. 110–11 " he head of statebeing an embodime ...

U.S. President
Dwight D. Eisenhower Dwight David "Ike" Eisenhower (; October 14, 1890 – March 28, 1969) was an American military officer An officer is a member of an armed forces or uniformed service who holds a position of authority. In its broadest sense, the term " ...
described in 1961 as a military-industrial complex, where the armed forces, commerce, and politics become closely linked, similarly to the European multilateral defense procurement. Various corporations, some publicly held, others private, bid for these contracts, which are often worth many billions of dollars. Sometimes, as with the contract for the international
Joint Strike Fighter Joint Strike Fighter (JSF) is a development and acquisition program intended to replace a wide range of existing Fighter aircraft, fighter, strike fighter, strike, and ground attack aircraft for the United States, the United Kingdom, Italy, Can ...
, a competitive tendering process takes place, with the decision made on the merits of the designs submitted by the companies involved. Other times, no bidding or competition takes place.


History

During the
early modern period The early modern period of modern history Human history, or world history, is the narrative of Human, humanity's past. It is understood through archaeology, anthropology, genetics, and linguistics, and since the History of writing, adve ...
, England, France, the Netherlands and some states in Germany became self-sufficient in arms production, with diffusion and migration of skilled workers to more peripheral countries such as Portugal and Russia. The modern arms industry emerged in the second half of the nineteenth century as a product of the creation and expansion of the first large military-industrial companies. As smaller countries (and even newly industrializing countries like Russia and Japan) could no longer produce cutting-edge military equipment with their indigenous resources and capacity, they increasingly began to contract the manufacture of military equipment, such as
battleship A battleship is a large armored warship A warship or combatant ship is a that is built and primarily intended for . Usually they belong to the of a state. As well as being armed, warships are designed to withstand damage and are usually ...

battleship
s,
artillery pieces
artillery pieces
and
rifle A rifle is a long-barrelled firearm A firearm is any type of gun A gun is a ranged weapon designed to use a shooting tube ( gun barrel) to launch typically solid projectiles, but can also project pressurized liquid (e.g. water gu ...

rifle
s to foreign firms. In 1854, the
British government ga, Rialtas na Ríochta Aontaithe sco, Govrenment o the Unitit Kinrick , image = HM Government logo.svg , image_size=220px, date_established = , state = United Kingdom The United Kingdom of Great Britain and Northern Ireland, comm ...
awarded a contract to the
Elswick Ordnance Company The Elswick Ordnance Company (sometimes referred to as Elswick Ordnance Works, but usually as "EOC") was a British armaments manufacturing company of the late 19th and early 20th century History Originally created in 1859 to separate William Arm ...
for the supply of his latest breech loading rifled artillery pieces. This galvanized the private sector into weapons production, with the surplus being increasingly exported to foreign countries. Armstrong became one of the first international arms dealers, selling his weapon systems to governments across the world from Brazil to Japan. In 1884, he opened a shipyard at Elswick to specialize in warship production—at the time, it was the only factory in the world that could build a battleship and arm it completely. The factory produced warships for many navies, including the
Imperial Japanese Navy The Imperial Japanese Navy (IJN; Kyūjitai are the traditional forms of kanji, Chinese characters, Chinese written characters used in Japanese language, Japanese. Their simplified counterparts are shinjitai (), "new character forms". Some of ...
. Several Armstrong cruisers played an important role in defeating the Russian fleet at the
Battle of Tsushima The Battle of Tsushima (russian: Цусимское сражение, ''Tsusimskoye srazheniye''), also known as the Battle of Tsushima Strait and the Naval Battle of the Sea of Japan (Japanese: 日本海海戦, ''Nihonkai-Kaisen'') in Japan, was ...
in 1905. In the American Civil War in 1861 the
North North is one of the four compass points The points of the compass are the vectors by which planet A planet is an astronomical body orbiting a star or Stellar evolution#Stellar remnants, stellar remnant that is massive enough to be Hydro ...
had a small but cognizable advantage over the south due to its ability to produce (in relatively small numbers) breech-loading rifles for use against the muzzle-loading rifled muskets the were largely the sole variety of shoulder arm utilized by the south. This began the transition to industrially produced mechanized weapons such as the Gatling gun. This industrial innovation in the defense industry was adopted by
Prussia Prussia, , Old Prussian Distribution of the Baltic tribes, circa 1200 CE (boundaries are approximate). Old Prussian was a Western Baltic language belonging to the Balto-Slavic branch of the Indo-European languages The Indo-Europ ...

Prussia
in 1866 & 1870–71 in its defeat of Austria and France respectively. By this time the machine gun had begun entering into the militaries. The first example of its effectiveness was in 1899 during the
Boer War The Second Boer War ( af, Tweede Vryheidsoorlog, lit. "Second Freedom War", 11 October 189931 May 1902), also known as the Boer War, the Anglo–Boer War, or the South African War, was a conflict fought between the British Empire and the two B ...
and in 1905 during the
Russo-Japanese War The Russo-Japanese War (russian: Ру́сско-япóнская войнá, Rússko-yapónskaya voyná; ja, 日露戦争, Nichiro sensō, Japanese-Russian War) was fought between the Empire of Japan The was a historical natio ...
. However, Germany were leaders in innovation of weapons and used this innovation nearly defeating the allies in
World War I World War I, often abbreviated as WWI or WW1, also known as the First World War or the Great War, was a global war A world war is "a war engaged in by all or most of the principal nations of the world". The term is usually reserved for ...

World War I
. In 1885, France decided to capitalize on this increasingly lucrative form of trade and repealed its ban on weapon exports. The regulatory framework for the period up to the
First World War World War I, often abbreviated as WWI or WW1, also known as the First World War or the Great War, was a global war A world war is "a war War is an intense armed conflict between states State may refer to: Arts, entertainmen ...
was characterized by a
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects hav ...
policy that placed little obstruction in the way of weapons exports. Due to the carnage of World War I, arms traders began to be regarded with odium as "merchants of death" and were accused of having instigated and perpetuated the war in order to maximize their profits from arms sales. An inquiry into these allegations in Britain failed to find evidence to support them. However, the sea change in attitude about war more generally meant that governments began to control and regulate the trade themselves. The volume of the arms trade greatly increased during the 20th century, and it began to be used as a political tool, especially during the
Cold War The Cold War was a period of geopolitical Geopolitics (from Greek#REDIRECT Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country loc ...
where the United States and the USSR supplied weapons to their proxies across the world, particularly
third world countries The term "Third World" arose during the Cold War The Cold War was a period of geopolitical tension between the Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a Federalism, federal so ...

third world countries
(see
Nixon DoctrineThe Nixon Doctrine, also known as the Guam Doctrine, was put forth during a press conference in Guam , az, GUAM Demokratiya və İqtisadi İnkişaf naminə Təşkilat , ro, GUAM Organizația pentru Democrație și Dezvoltare Economică , linki ...
).


Sectors


Land-based weapon

This category includes everything from light arms to
heavy artillery Artillery is a class of heavy military ranged weapons built to launch munitions far beyond the range and power of infantry at the Battle of the Somme (July–November 1916) during the First World War Infantry is an army specialization ...
, and the majority of producers are small. Many are located in third world countries. International trade in
handgun A handgun is a short-barrelled firearm that can be held and used with one hand. The two most common handgun sub-types in use today are revolvers and semi-automatic pistols, although other handgun-types such as derringers and machine pistols als ...

handgun
s,
machine gun A machine gun is an auto-firing, rifling, rifled long gun, long-barrel action (firearms)#Autoloading operation, autoloading firearm designed for sustained direct fire with fully powered cartridges. Other automatic firearms such as assault ri ...

machine gun
s,
tank A tank is an armored fighting vehicle An armoured fighting vehicle (AFV) is an armed combat vehicle protected by armour, generally combining operational mobility with offensive and defensive capabilities. AFVs can be wheeled or tr ...

tank
s,
armored personnel carrier An armoured personnel carrier (APC) is a broad type of armoured, military vehicle designed to transport personnel and equipment in combat zones. They are sometimes referred to colloquially as "battle taxis" or "battle buses". Since World War I ...
s, and other relatively inexpensive weapons is substantial. There is relatively little regulation at the international level, and as a result, many weapons fall into the hands of organized crime, rebel forces, terrorists, or regimes under sanctions.. www.fpa.org


Small arms

The Control Arms Campaign, founded by
Amnesty International Amnesty International (also referred to as Amnesty or AI) is a non-governmental organization A non-governmental organization, or simply an NGO, is an organization An organization, or organisation (Commonwealth English The use ...

Amnesty International
,
Oxfam Oxfam is a British founded confederation of 21 independent charitable organization A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious ...
, and the
International Action Network on Small ArmsThe International Action Network on Small Arms (IANSA) was incorporated on 30 May 2002 under the laws of the United Kingdom of Great Britain and Northern Ireland. The IANSA London office was closed in 2015, but it has an active UN liaison office in N ...
, estimated in 2003 that there are over 639 million small arms in circulation, and that over 1,135 companies based in more than 98 different countries manufacture small arms as well as their various components and ammunition.


Aerospace systems

Encompassing military aircraft (both land-based and
naval aviation Naval aviation is the application of military air power by navies A navy, naval force, or maritime force is the branch of a Nation's armed forces principally designated for naval warfare, naval and amphibious warfare; namely, lake-borne, ...

naval aviation
), conventional missiles, and
military satellites A military satellite is an artificial satellite used for a military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically officially authorized and m ...
, this is the most technologically advanced sector of the market. It is also the least competitive from an economic standpoint, with a handful of companies dominating the entire market. The top clients and major producers are virtually all located in the
western world The Western world, also known as the West, refers to various regions, nations and state (polity), states, depending on the context, most often consisting of the majority of Europe, Northern America, and Australasia.
and Russia, with the United States easily in the first place. Prominent aerospace firms include
Rolls Royce Rolls-Royce (always hyphenated) may refer to: * Rolls-Royce Limited Rolls-Royce was a British luxury car and later an aero-engine manufacturing business established in 1904 in Manchester Manchester () is a city and metropolitan borough in ...
, HAL(Hindustan aeronautics limited)
BAE Systems BAE Systems plc (BAE) is a British multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinationa ...
,
Dassault Aviation Dassault Aviation S.A () is an international French aircraft manufacturer An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic ...
,
Sukhoi The JSC Sukhoi Company (russian: ПАО «Компания „Сухой“», ) was a major Soviet and now a Russian aircraft manufacturer, headquartered in Begovoy District, Northern Administrative Okrug, Moscow Moscow (, ; rus, links=no ...
,
Mikoyan Russian Aircraft Corporation "MiG" (russian: Российская самолётостроительная корпорация „МиГ“, Rossiyskaya samolotostroitel'naya korporatsiya "MiG"), commonly known as Mikoyan and MiG, was a Russia ...
,
EADS Airbus SE (; ; ; ) is a European multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational s ...
,
Leonardo Leonardo is a masculine given name, the Italian, Spanish, and Portuguese equivalent of the English English usually refers to: * English language English is a West Germanic languages, West Germanic language first spoken in History of Ang ...
,
Thales Group Thales Group () is a French multinational company A multinational company (MNC) is a corporation, corporate organization that owns and controls the production of goods or services in at least one country other than its home country. Control is c ...
,
Lockheed Martin Lockheed Martin Corporation is an American aerospace Aerospace is a term used to collectively refer to the and . Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. consists of and . ...

Lockheed Martin
,
Northrop Grumman Northrop Grumman Corporation () is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Mult ...

Northrop Grumman
and
Boeing The Boeing Company () is an American multinational corporation A multinational company (MNC) is a corporate A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a Legal personal ...

Boeing
. There are also several
multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, a sovereign state that comprises two or more nat ...
consortia mostly involved in the manufacturing of
fighter jet Fighter aircraft are fixed-wing military aircraft designed primarily for air-to-air combat. In military conflict, the role of fighter aircraft is to establish air superiority of the battlespace. Domination of the airspace above a battlefie ...
s, such as the
Eurofighter The Eurofighter Typhoon is a European twin-engine, canard delta wing, multirole fighter. The Typhoon was designed originally as an air superiority fighter and is manufactured by a consortium A consortium (plural: consortia) is an Volunta ...

Eurofighter
. The largest military contract in history, signed in October 2001, involved the development of the
Joint Strike Fighter Joint Strike Fighter (JSF) is a development and acquisition program intended to replace a wide range of existing Fighter aircraft, fighter, strike fighter, strike, and ground attack aircraft for the United States, the United Kingdom, Italy, Can ...
.


Naval systems

Some of the world's great powers maintain substantial
naval force A navy, naval force, or maritime force is the branch of a Nation's armed forces principally designated for naval warfare, naval and amphibious warfare; namely, lake-borne, riverine, littoral zone, littoral, or ocean-borne combat operations and ...
s to provide a global presence, with the largest nations possessing
aircraft carrier An aircraft carrier is a warship A warship or combatant ship is a that is built and primarily intended for . Usually they belong to the of a state. As well as being armed, warships are designed to withstand damage and are usually faster ...
s,
nuclear submarine A nuclear submarine is a submarine powered by a nuclear reactor. The performance advantages of nuclear submarines over "conventional" (typically Marine diesel engine, diesel-electric) submarines are considerable. Nuclear marine propulsion, Nuc ...
s and advanced anti-air defense systems. The vast majority of military ships are conventionally powered, but some are
nuclear-powered Nuclear power is the use of nuclear reaction In nuclear physics Nuclear physics is the field of physics that studies atomic nuclei and their constituents and interactions. Other forms of nuclear matter are also studied. Nuclear physics sh ...
. There is also a large global market in second-hand naval vessels, generally purchased by
developing countries A developing country is a sovereign state with a less developed Industrial sector, industrial base and a low Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no ...

developing countries
from
Western Western may refer to: Places *Western, Nebraska, a village in the US *Western, New York, a town in the US *Western Creek, Tasmania, a locality in Australia *Western Junction, Tasmania, a locality in Australia *Western world, countries that ide ...

Western
governments.


Cybersecurity industry

The cybersecurity industry is becoming the most important defense industry as cyber attacks are being deemed as one of the greatest risks to defense in the next ten years as cited by the NATO review in 2013. Therefore, high levels of investment has been placed in the cybersecurity industry to produce new software to protect the ever-growing transition to digitally run hardware. For the military industry it is vital that protections are used for systems used for reconnaissance, surveillance and intelligence gathering. Nevertheless, cyber attacks and cyber attackers have become more advanced in their field using techniques such as Dynamic Trojan Horse Network (DTHN) Internet Worm,
Zero-Day Attack A zero-day (also known as 0-day) is a computer-software vulnerability Vulnerability refers to the inability (of a system or a unit) to withstand the effects of a hostile environment. A window of vulnerability (WOV) is a time frame within which ...
, and Stealth Bot. As a result, the cybersecurity industry has had to improve the defense technologies to remove any vulnerability to cyber attacks using systems such as the Security of Information (SIM), Next-Generation Firewalls (NGFWs) and
DDoS In computing Computing is any goal-oriented activity requiring, benefiting from, or creating computing machinery. It includes the study and experimentation of algorithmic processes and development of both computer hardware , hardware and sof ...
techniques. As the threat to computers grows, the demand for cyber protection will rise, resulting in the growth of the cybersecurity industry. It is expected that the industry will be dominated by the defense and homeland security agencies that will make up 40% of the industry.


International arms transfers

According to research institute
SIPRI Stockholm International Peace Research Institute (SIPRI) is an international institute An institute is an organisation An organization, or organisation ( Commonwealth English; see spelling differences), is an entity – such as a com ...
, the volume of international transfers of major weapons in 2010–14 was 16 percent higher than in 2005–2009. The five biggest exporters in 2010–2014 were the United States, Russia, China, Germany and France, and the five biggest importers were India, Saudi Arabia, China, the United Arab Emirates and Pakistan. The flow of arms to the Middle East increased by 87 percent between 2009–13 and 2014–18, while there was a decrease in flows to all other regions: Africa, the Americas, Asia and Oceania, and Europe.https://www.sipri.org/sites/default/files/2019-03/fs_1903_at_2018.pdf SIPRI has identified 67 countries as exporters of major weapons in 2014–18. The top 5 exporters during the period were responsible for 75 percent of all arms exports. The composition of the five largest exporters of arms changed between 2014–18 remained unchanged compared to 2009–13, although their combined total exports of major arms were 10 percent higher. In 2014–18 there can be seen significant increases in arms exports from the US, France and Germany, while Chinese exports rose marginally and Russian exports decreased. In 2014–18, 155 countries (about three-quarters of all countries) imported major weapons. The top 5 recipients accounted for 33 percent of the total arms imports during the period. The top five arms importers - Saudi Arabia, India, Egypt, Australia and Algeria - accounted for 35 percent of total arms imports in 2014–18. Of these, Saudi Arabia and India were among the top five importers in both 2009–13 and 2014–18. In 2014–18, the volume of major arms international transfers was 7.8 percent higher than in 2009-13 and 23 percent than that in 2004–08. The largest arms importer was Saudi Arabia, importing arms majorly from the United States, United Kingdom and France. Between 2009–13 and 2014–18, the flow of arms to the Middle East increased by 87 percent. Also including India, Egypt, Australia and Algeria, the top five importers received 35 percent of the total arms imports, during 2014–18. Besides, the largest exporters were the United States, Russia, France, Germany and China.


World's largest arms exporters

Figures are SIPRI Trend Indicator Values (TIVs) expressed in millions. These numbers may not represent real financial flows as prices for the underlying arms can be as low as zero in the case of military aid. The following are estimates from
Stockholm International Peace Research Institute Stockholm International Peace Research Institute (SIPRI) is an international institute An institute is an organisation An organization, or organisation ( Commonwealth English; see spelling differences), is an entity – such as a co ...
. Overall global arms exports rose of about 6 per-cent in the last 5 years compared to the period 2010-2014 and increased by 20 per-cent since 2005–2009. Note that rankings for exporters below a billion dollars are less meaningful, as they can be swayed by single contracts. A much more accurate picture of export volume, free from yearly fluctuations, is presented by 5-year moving averages. Next to SIPRI there are several other sources that provide data on international transfers of arms. These include national reports by national governments about arms exports, the UN register on conventional arms and an annual publication by the U.S. Congressional Research Service that includes data on arms exports to developing countries as compiled by U.S. intelligence agencies. Due to the different methodologies and definitions used different sources often provide significantly different data.


World’s largest postwar arms exporter

SIPRI uses the "trend-indicator values" (TIV). These are based on the known unit production costs of weapons and represent the transfer of military resources rather than the financial value of the transfer.https://www.sipri.org/databases/armstransfers


World's largest arms importers

Units are in Trend Indicator Values expressed as millions of
U.S. dollar The United States dollar (symbol A symbol is a mark, sign, or word that indicates, signifies, or is understood as representing an idea, Object (philosophy), object, or wikt:relationship, relationship. Symbols allow people to go beyond wha ...
s at 1990s prices. These numbers may not represent real financial flows as prices for the underlying arms can be as low as zero in the case of military aid. Arms import rankings fluctuate heavily as countries enter and exit wars. Export data tend to be less volatile as exporters tend to be more technologically advanced and have stable production flows. 5-year moving averages present a much more accurate picture of import volume, free from yearly fluctuations.


List of major weapon manufacturers

This is a list of the world's largest arms manufacturers and other military service companies who profit the most from the
War economy A German poster from the First World War telling the public how to save soap and oil during wartime A war economy or wartime economy is the set of contingencies undertaken by a modern state to mobilize its economy An economy (from Greek la ...
, their origin is shown as well. The information is based on a list published by the
Stockholm International Peace Research Institute Stockholm International Peace Research Institute (SIPRI) is an international institute An institute is an organisation An organization, or organisation ( Commonwealth English; see spelling differences), is an entity – such as a co ...
for 2020. The list provided by the
SIPRI Stockholm International Peace Research Institute (SIPRI) is an international institute An institute is an organisation An organization, or organisation ( Commonwealth English; see spelling differences), is an entity – such as a com ...
The numbers are in billions of
US dollars The United States dollar (symbol A symbol is a mark, sign, or word In linguistics, a word of a spoken language can be defined as the smallest sequence of phonemes that can be uttered in isolation with semantic, objective or pragma ...
.


Arms control

Arms control refers to international restrictions upon the development, production, stockpiling, proliferation and usage of small arms, conventional weapons, and
weapons of mass destruction A weapon of mass destruction (WMD) is a nuclear, radiological File:Radioactive.svg, upThe international symbol for types and levels of ionizing radiation (radioactivity) that are unsafe for Radiation shield, unshielded humans. Radiation, ...
. It is typically exercised through the use of
diplomacy Diplomacy is the practice of influencing the decisions and conduct of foreign governments or organizations through dialogue, negotiation, and other nonviolent means. Diplomacy usually refers to international relations carried out through the inte ...

diplomacy
, which seeks to persuade
government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Departmen ...

government
s to accept such limitations through agreements and
treaties A treaty is a formal, legally binding written agreement between actors in international law International law, also known as public international law and law of nations, is the set of rules, norms, and standards generally accepted in relati ...

treaties
, although it may also be forced upon non-consenting governments.


Notable international arms control treaties

*
Geneva Protocol The Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of Warfare, usually called the Geneva Protocol, is a treaty A treaty is a formal, legally binding written agre ...

Geneva Protocol
on chemical and biological weapons, 1925 *
Outer Space Treaty russian: link=yes, Договор о космосе es, link=yes, Tratado sobre el espacio ultraterrestre , long_name =Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon ...

Outer Space Treaty
, signed and entered into force 1967 *
Biological Weapons Convention The Biological Weapons Convention (BWC), or Biological and Toxin Weapons Convention (BTWC), is a disarmament Disarmament is the act of reducing, limiting, or abolishing weapons A weapon, arm or armament is any implement or device that can ...
, signed 1972, entered into force 1975 *
Missile Technology Control Regime The Missile Technology Control Regime (MTCR) is a multilateral export control regimeA multilateral export control regime is an informal group of like-minded supplier countries that seek to contribute to the non-proliferation of Weapon of mass d ...

Missile Technology Control Regime
(MTCR), 1987 *
Chemical Weapons Convention The Chemical Weapons Convention (CWC), officially the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, is an arms control Arms control is a term for international ...
, signed 1993, entered into force 1997 *
Ottawa Treaty The Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction, known informally as the Ottawa Treaty, the Anti-Personnel Mine Ban Convention, or often simply the Mine Ban Trea ...
on anti-personnel land mines, signed 1997, entered into force 1999 * New START Treaty, signed by Russia and the United States in April 2010, entered into force in February 2011 *Arms Trade Treaty, concluded in 2013, entered into force on 24 December 2014.Delgado, Andrea. Explainer: What is the Arms Trade Treaty, 23, Feb, 2015, https://theconversation.com/explainer-what-is-the-arms-trade-treaty-37673


See also


References


External links


Amnesty International: Arms Trade

The British Library – Defence Industry Guide (sources of information)






* [http://www.sipri.org/research/armaments/production SIPRI arms industry reports and database]
SIPRI list of Top 100 arms-producing companies

SPADE Defense Index (NYSE: DXS)
Defense sector market index

* [http://un.org/disarmament UN Office for Disarmament Affairs]
U.S. Arms Sales to the Third World
from the Dean Peter Krogh Foreign Affairs Digital Archives
World Map and Chart of Arms exports per country
by Lebanese-economy-forum, World Bank data
World Security Institute's Center for Defense Information

Z. Yihdego, Arms Trade and International Law, Hart: OXford, 2007
{{DEFAULTSORT:Arms Industry Arms control Arms trafficking Military comparisons lists of countries Military industry, Military–industrial complex Weapons trade Industries (economics)