The new arms race. Top 10 largest defense companies in the world
A series of major military conflicts in different parts of the world, the unpredictability of authoritarian regimes and the unreliability of partners have led to the beginning of a new arms race. Shares of defense companies are growing like wildfire, and contracts for the supply of weapons are signed for years in advance. So we decided to write about the largest, by market capitalization, arms manufacturers in the world, as we once did for semiconductor and generally the largest companies in the world. What is market capitalization, how is it calculated and what does it depend on can be read in the first article on this topic.
Market capitalization of companies is given according to data from Companiesmarketcap.com at the time of writing the article. This site, in turn, takes figures from Yahoo's market applications. Russian and Chinese military companies are not joint-stock companies and are usually owned by the government. Market capitalization is constantly changing, the article records the status as of July 2, 2025, 12:00 Kyiv time.
1. RTX Corporation
Country USA
Year of foundation 1922
Market capitalization $192.63 billion
RTX Corporation, formerly known as Raytheon Technologies Corporation, was founded in 1922 as the American Appliance Company as a refrigerator manufacturer, but quickly switched to electronics. Their first known device was the Raytheon ("light of/from the gods") gas-fired AC rectifier, so the company was renamed accordingly three years later. In the 1930s, after merging with QRS Company, the company became the world's largest manufacturer of vacuum tubes. During World War II, Raytheon began producing magnetrons for radar, and did so well that by 1945 it had 80% of the market. At the same time, one of the company's engineers invented microwave ovens, which Raytheon began manufacturing in 1947.
After the war, Raytheon tested one of the first guidance systems for air defense missiles and has remained in the business ever since. Raytheon manufactures AGM-65 Maverick, AGM-88 HARM, AIM-9 Sidewinder, AIM-120 AMRAAM aircraft missiles, BGM-109 Tomahawk cruise missiles, MIM-23 Hawk and MIM-104 Patriot anti-aircraft missiles, RIM-161 Standard Missile 3 intercontinental ballistic missile interceptors, FGM-148 Javelin ATGM missiles, and FIM-92 Stinger MANPADS missiles. Many of Raytheon's weapons have proven themselves well during the current Russian-Ukrainian war.
In addition, Raytheon, through its Pratt & Whitney business unit, is responsible for manufacturing engines for nearly all of the U.S. Air Force's combat, transport, and support aircraft. Pratt & Whitney engines power aircraft such as the F-35 Lightning II, F-22 Raptor, F-15 Eagle, F-16 Falcon, F117, C-17 Globemaster III, E-3 AWACS, E-8 Joint STARS, B-52 strategic bomber, KC-135 tanker aircraft, and many others.
2. Honeywell
Country USA
Year of foundation 1906
Market capitalization $153.59 billion
Honeywell Heating Specialty Company was founded in 1906 and offered mercury heaters invented by Mark C. Honeywell. During World War II, like many other American companies, Honeywell began working for the front. The company manufactured tank periscopes, camera stabilizers, and the Honeywell C-1 autopilot, the same one that was on the Boeing B-29 Superfortress bombers "Enola Gay" and "Bockscar" that dropped nuclear bombs on Hiroshima and Nagasaki in 1945. It was the success of the C-1 autopilots that forced Honeywell to create an aviation division that later participated in equipping the first American nuclear submarine, the USS Nautilus (SSN-571).
In 1955, Honeywell, together with Raytheon, created a computer division to compete with IBM. The company acquired the computer divisions of Computer Control Corporation, General Electric, and Xerox Data Systems and produced mainframes.
Honeywell currently produces devices for the aerospace industry, turbine engines, auxiliary power units, gyroscopes, brakes, wheels, artificial vision systems, weather radars and avionics for military and civilian aircraft, composite materials for armor, etc. The most famous Honeywell products are the Avco-Lycoming AGT1500 gas turbine engine for M1 Abrams tanks; the F124/125 turbofan engine (Aermacchi M-346, Aero L-159 Alca); Spectra Shield armor; engines for Lycoming T53/T55 helicopters (Bell UH-1H Huey, Boeing CH-47 Chinook and many others).
3. Safran
Country France
Year of foundation 1905
Market capitalization $137.06 billion
The oldest company in the Safran Group, the manufacturer of aircraft engines Gnome, was founded in 1905. Gnome, Le Rhône and Gnome et Rhône engines were used to power almost all of the Entente's combat aircraft during World War I. In 1945, Gnome et Rhône was nationalized and transformed into Snecma (now Safran Aircraft Engines). The modern Safran Group was formed in 2005 after the merger of Snecma and Sagem (electronics, telecommunications).
Safran Group currently includes: Safran Aircraft Engines (engines for civil and military aircraft), Safran Helicopter Engines (engines for helicopters), Safran Aero Boosters (components for aircraft and missiles), Safran Transmission Systems, Safran Landing Systems (the world's largest manufacturer of aircraft landing gear), Safran Electronics & Defense (optoelectronics, inertial navigation) and the manufacturer of space rockets and rocket engines ArianeGroup (50%).
Safran produces EuroProp TP400-D6 engines, Snecma M53 (Dassault Mirage 2000 fighter), Snecma M88 (Dassault Rafale fighter), RTM322 (AgustaWestland Apache attack helicopter), Arrano (Airbus Helicopters H160), Aneto (AgustaWestland AW149), Ariane 6 launch vehicles, as well as the SAGEM Sigma 30 inertial navigation system, which is installed on almost all modern artillery systems (CAESAR, M270 MLRS, Archer, PzH2000 and others).
4. Lockheed Martin
Country USA
Year of foundation 1917
Market capitalization $109.16 billion
Lockheed Martin Corporation was born on March 15, 1995, after the merger of aerospace companies Lockheed Corporation and Martin Marietta. However, the constituent parts of this union were created much earlier. Lockheed Corporation was founded by Allan Lockheed and Jack Northrop in 1926. In 1939, Northrop will create his own company, a competitor to Lockheed - Northrop Corporation. One of the parts of Martin Marietta - The Martin Company was founded in 1917, the other, American-Marietta Corporation - in 1940.
Lockheed Martin needs no introduction. These are such legendary aircraft as the P-38 Lightning, U-2, SR-71 Blackbird, C-130 Hercules, F-117 Nighthawk. And, of course, the fifth-generation fighters Lockheed Martin F-22 Raptor and Lockheed Martin F-35 Lightning II. And also the Trident nuclear intercontinental ballistic missiles, reconnaissance satellites, civil and military helicopters (through Sikorsky Aircraft). In addition, Lockheed Martin is also the KH-9 HEXAGON and KH-11 KENNEN reconnaissance satellites, as well as the Hubble Space Telescope, among others.
As for Martin Marietta, it was responsible for a significant portion of the US nuclear arsenal at one time. It was this company that created the Pershing and Pershing II medium-range ballistic missiles that intimidated the USSR at the end of the Cold War; the LGM-118 Peacekeeper ICBM (12 separate warheads), the FGM-148 Javelin ATGM missile, as well as the Titan (1957–2005) and Atlas (1957–2025) series of space launch vehicles.
5. Rheinmetall
Country Germany
Year of foundation 1889
Market capitalization $90.25 billion
The German Rheinmetall was founded in 1889 as the Rheinische Metallwaaren- und Maschinenfabrik Corporation to supply ammunition to the German Empire, which had appeared on the map in 1871. One of Rheinmetall's first technological breakthroughs was the creation of a rapid-fire cannon in 1896. By 1914, the company had become the country's largest arms manufacturer, but after the defeat in the war, arms production in Germany was banned.
Armament was resumed in 1933 and by the beginning of World War II Rheinmetall had once again become one of the largest manufacturers in the country. The company used prisoner labor, and its factories were repeatedly targeted by Allied air raids. On June 30, 1945, Rheinmetall was almost closed, with only a few workers remaining, and the factories were destroyed or dismantled. After the restoration of the Bundeswehr in 1955, Rheinmetall immediately resumed work, starting with the production of MG 3 machine guns.
Rheinmetall is now known as a manufacturer of ammunition; Marder, Lynx and Puma infantry fighting vehicles, TPz Fuchs armored personnel carriers; guns, including 155 mm FH70 howitzers, 120 mm Leopard 2 tank guns and automatic guns for air defense systems; military vehicles (compatible with MAN), diesel ship engines, etc. Rheinmetall representatives have repeatedly expressed their desire to open production in Ukraine.
6. General Dynamics
Country USA
Year of foundation 1899
Market capitalization $79.01 billion
General Dynamics began in 1899 as the Electric Boat Company (now General Dynamics Electric Boat). It was this company that built the first US submarine, the USS Holland (SS-1) (1900), and has since built all submarines for the US Navy, including the Ohio-class nuclear-powered ballistic missile submarines (one of the main components of the US nuclear triad), the Los Angeles-class, Virginia-class and Seawolf-class attack submarines. Over 125 years in the service of the submarine fleet!
General Dynamics was formed in 1952, after the acquisition of Canadian aircraft manufacturer Canadair and the renaming of the joint venture. In 1954, the company added another aircraft manufacturer to its divisions, the American Convair. General Dynamics' fascination with aviation continued until the mid-1980s. During this time, the company created such famous fighters as the F-111 Aardvark and its own F-16 Fighting Falcon (now Lockheed Martin), and later decided to concentrate on ground systems under the supervision of General Dynamics Land Systems.
General Dynamics Land Systems itself is the M1 Abrams and Leopard 2E main battle tanks (produced in Spain by General Dynamics Santa Bárbara Sistemas), the LAV, Stryker, and Mowag Piranha armored combat vehicle families, Buffalo MPV engineering vehicles, Cougar armored vehicles, the promising Griffin light tank, and much more.
7. BAE Systems
Country United Kingdom
Year of foundation 1828
Market capitalization $75.81 billion
BAE Systems is a relatively young company, created in 1999 by the merger of British Aerospace and Marconi Electronic Systems, but its components… Marconi Electronic Systems was founded by the same “father of radio” Guglielmo Marconi back in 1897 under the name The Wireless Telegraph & Signal Company. And if we trace the roots of British Aerospace, the oldest company that became part of it during numerous mergers and nationalizations would be Vickers Limited (armor, ship propellers, warships, artillery), created in… 1828. In fact, British Aerospace gradually included almost all aircraft manufacturers in the United Kingdom.
As of now, BAE Systems, through its American division BAE Systems Inc., is the largest external partner of the US defense industry, for example, the largest partner in the production of F-35 fighters. And at the same time, the European Eurofighter Typhoon fighters. Plus, BAE is involved in the development of the 6th generation Tempest fighters, that is, now the Global Combat Air Programme.
In addition, the company (BAE Systems Submarines) is the main manufacturer of submarines for the Royal Navy, including the Triumph and Astute class nuclear submarines; warships (BAE Systems Maritime – Naval Ships), including the Queen Elizabeth class aircraft carriers, Type 45 class destroyers, Khareef and Bung Tomo class corvettes, and many others.
And in addition, BAE Systems also includes the M2/M3 Bradley and FV510 Warrior infantry fighting vehicles, localized M113s, the Challenger 2 main battle tank, radars, missiles, navigation equipment, etc.
8. Northrop Grumman
Country USA
Year of foundation 1929
Market capitalization $72.47 billion
Northrop and Grumman merged into Northrop Grumman in 1991. We have already mentioned Northrop Corporation, which was actually founded in 1939 by former Lockheed employee Jack Northrop, and Grumman Aircraft Engineering Corporation was founded by Leroy Grumman even earlier, in 1929.
Northrop's most popular aircraft are the F-5 light fighter and the T-38 Talon trainer, with 2,246 and 1,146 built, respectively. The most famous modern aircraft is the Northrop B-2 Spirit stealth bomber, the same one that took part in the recent strike on Iran.
Grumman is known for its World War II-era fighters and torpedo bombers, such as the F6F Hellcat (12,275 built), and the F-14 Tomcat, a multi-role naval fighter with a variable-geometry wing. Grumman also designed and built the Apollo lunar landing modules.
The combined Northrop Grumman company produces fuselages for the F-35 Lightning II and F/A-18 Super Hornet, Grumman E-2 Hawkeye surveillance aircraft, and MQ-4C Triton and RQ-4 Global Hawk high-altitude reconnaissance drones, radars, satellites, and the Cygnus cargo spacecraft. The company is involved in the creation of Space Launch System launch vehicles for Artemis lunar missions, the next-generation intercontinental ballistic missile LGM-35 Sentinel (expected to enter service in 2030), and the next-generation strategic bomber B-21 Raider.
9. Thales Group
Country France
Year of foundation 1893
Market capitalization $60.69 billion
The French Thales Group began as Compagnie Française Thomson-Houston in 1893. In 1968, it merged with Compagnie générale de la télégraphie sans fil (founded in 1919, formerly Société française radio-électrique), which had contributed to the invention of the radiotelegraph, radio broadcasting, radar, television and other everyday items. The combined company was called Thomson-Brandt, and in 2000 was renamed Thales, in honor of the Greek mathematician, astronomer and philosopher Thales of Miletus (626/623–548/545 BC).
Thales Group participates in joint ventures with Raytheon Systems, BAE Systems, Leonardo and other well-known arms manufacturers. For example, it has a 67% stake in Thales Alenia Space, which produces surveillance satellites and ground infrastructure for them, as well as satellites for the European navigation system Galileo. In addition, Thales, together with BAE Systems, participated in the creation of the British Queen Elizabeth-class aircraft carriers. The company owns the Australian manufacturer of the Bushmaster and Hawkei armored personnel carriers (now Thales Australia).
Thales Air Defence produces NLAW ATGMs, Crotale, Javelin (not to be confused with the FGM-148 Javelin ATGM) and Starstreak, licensed AGM-114 Hellfire aircraft missiles and Martlet helicopter missiles; Thales Defense & Security develops military communications; Thales Underwater Systems sonars and communication systems for submarines; Ground Master series mobile radars and much more.
10. L3Harris
Country USA
Year of foundation 1895
Market capitalization $47.14 billion
Like many modern companies, L3Harris is the product of a merger, in this case between L3 Technologies (1997) and Harris Corporation (originally Harris Automatic Press Company, 1895). The merger only took place in 2019, so it is technically the youngest company on the list.
Harris Automatic Press Company manufactured printing presses for 60 years, but since 1957, after the acquisition of Gates Radio, it began to manufacture electronics, and later chips, microcomputers and software, including for security systems, training, data processing, professional flight simulators, etc. L3 Technologies specialized in surveillance and reconnaissance, control and communications systems.
Modern L3Harris continues to deal with products for intelligence, communications, combat awareness, battlefield control, training, night vision systems, etc. Plus antenna systems of all types, satellite data analysis, electronic warfare systems, and so on. In addition, L3Harris owns the legendary rocket engine manufacturer Aerojet Rocketdyne, which developed engines for Saturn V launch vehicles, Space Shuttles, and is currently involved in the work on the Space Launch System.
Other large defense companies
11. Hindustan Aeronautics (India) – $38.16 billion
12. Bharat Electronics (India) – $36.25 billion
13. Leonardo (Italy) – $32.54 billion
14. Kongsberg Gruppen (Norway) – $31.36
15. SAAB AB (Sweden) – $28.28 billion
16. Dassault Aviation (France) – $27.81 billion
17. Elbit Systems (Israel) – $20.74 billion
18. Aselsan (Turkey) – $17.07 billion
19. Hensoldt (Germany) – $12.56 billion
20. Leonardo DRS (USA) – $11.99 billion
21. AeroVironment (USA) – $11.50 billion
22. Huntington Ingalls Industries (USA) - $9.66 billion
23. Bharat Dynamics (India) – $8.42 billion
24. LIG Nex1 (South Korea) – $8.38 billion
25. Indra Sistemas (India) – $7.34 billion