Globaltraded.com , ISTANBUL — Turkish defense company Baykar has made a significant entry into the list of the top 100 arms producers globally, experiencing a remarkable 94% increase in arms revenue, according to the Stockholm International Peace Research Institute (SIPRI).
Baykar, known for producing the Bayraktar TB-2 drone, achieved the fastest growth rate among companies in the ranking.
Turkey’s Baykar and three other Turkish companies contributed to a total arms revenue of $5.5 billion in 2022, marking a 22% increase from 2021.
The Stockholm International Peace Research Institute (SIPRI) report highlighted the entry of Baykar into the top 100, emphasizing its rapid growth.
Global Trends in Arms Production:
The SIPRI report indicated a 3.5% decline in revenues from sales by the world’s top 100 arms producers, totaling $597 billion in 2022 compared to the previous year.
Despite increased demand driven by the Russia-Ukraine war and geopolitical tensions, companies faced challenges in boosting production capacity due to labor shortages, rising costs, and supply chain disruptions.
The decline in arms revenues was led by major US companies, with a 7.9% year-on-year drop to $302 billion in 2022.
Asian and Oceania companies, shielded by domestic demand and reliance on local suppliers, experienced a 3.1% growth to $134 billion in 2022.
Future Outlook:
The report suggested that global arms revenues are expected to surge in the coming years due to outstanding orders and a rise in new contracts.
New contracts, particularly for ammunition, are anticipated to translate into higher revenue in 2023 and beyond.
Regional Highlights:
China accounted for the second-largest share of combined top 100 arms revenues globally, at 18%, with an 2.7% rise in revenues to $108 billion in 2022. Due to a lack of data, only two Russian companies were included in the list, with combined arms revenues falling by 12% to $20.8 billion. The sole Ukrainian company in the top 100, UkrOboronProm, posted a 10% decline in arms revenue to $1.3 billion.
Baykar’s inclusion in the top 100 underscores its rapid growth and contribution to the global arms industry amid evolving geopolitical dynamics and increasing demand for defense capabilities. (GT)
