15 Largest Defense Contractors in the World in 2022

In this article, we will take a look World’s largest defense contractor in 2022. To skip our detailed analysis, you can go straight to see 5 World’s largest defense contractor in 2022.

Despite the early development of a vaccine that saved millions of lives, the world seemed to be headed for a recession, despite the global pandemic being overturned. While inflation has reached record highs and you might think that most countries would focus on their own economies and try to make life easier for the people who live in them, the geopolitical upheaval has made a mockery of this belief. In February 2022, Russia launched an unprovoked invasion of Ukraine, which, eight months later, is still far from over with heavy losses for both sides, although the latter has certainly suffered its worst, with thousands of civilians dead and major infrastructure being destroyed by Russia. The West has rallied against the growing Russian threat, despite some differences, and has supplied Ukraine with weapons and aid to defend its territory. Regardless of who emerges victorious, the current geopolitical scenario is good enough for the defense contractor industry.

According to a report by PwC, the defense industry was one of the few industries that emerged largely unscathed from the pandemic and continued to see modest growth in the US while delivering significant growth in Europe. 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, which significantly increased military spending by most Western countries in 2022. Although the industry was not much affected by the pandemic, it faced some problems after the global supply chain faced a lot of challenges, especially due to labor absenteeism and supply chain shortages.

Before the Russian invasion, most military spending was to combat terrorism, especially in the United States and Europe. For other countries, such as India and Pakistan, military spending is to ensure readiness amid rising tensions between the two countries, especially after the Indian Air Force violated Pakistani territory and was shot down by the Pakistan Army. Meanwhile, China continues to spend heavily on its military to establish its power, even as relations with the West deteriorate and skirmishes with its neighbor India continue. China, along with the United States, dominates the list of the world’s largest defense contractors.

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World's largest defense contractor in 2022

World’s largest defense contractor in 2022

Photo by Somchai Kongkamsri from Pexels

After the Russian invasion, Western priorities have changed significantly, returning more to Cold War-style priorities; For example, both Finland and Sweden applied for NATO membership despite Russian threats after the invasion. Meanwhile, the United States, realizing the importance of countering Russian aggression, has pledged at least $16.9 billion to Ukraine since January 2021, of which $16.2 billion was provided after the invasion in February. Even the member states of the European Union have not stopped providing vital weapons and aid to Ukraine, which has so far been the main reason for resisting Russian aggression, and the biggest beneficiary of this increase in defense spending. The world’s 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%, aided by the Russia Ukraine war, and is expected to increase to $581 at a CAGR of 3.2%. billion by 2026. To determine the world’s largest defense contractors in 2022, we referred to the Fortune 500 global list and the Fortune 500 list. We then ranked each defense company based on its revenue, profits, assets and number of employees, assigning 40% weightage to the first two criteria and 20% weightage to the last two criteria. So, let’s take a look at the companies that stand to benefit the most from Russia’s invasion of Ukraine, starting with number 15:

15. Huntington Ingalls Industries, Inc. (NYSE:HII)

Gross revenue (in millions of dollars): 9,524

Total profits (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 provides additional professional services in the defense sector. Huntington Ingalls Industries, Inc. is responsible for more ships than any other shipbuilder in US naval history. (NYSE:HII) was launched in 2011 as a spin-off of Northrop Grumman, another company on our list.

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14. Textron Inc. (NYSE:TXT)

Gross revenue (in millions of dollars): 12,382

Total profits (in millions of dollars): 746

Total assets (in millions of dollars): 15,827

Total number of employees: 33,000

Textron Inc. (NYSE:TXT) was initially founded nearly a century ago as a textile company but is now a leading defense company in the United States. Textron Inc. (NYSE:TXT) has operations in at least 25 countries. Textron Inc.

13. L3Harris Technologies, Inc. (NYSE:LHX)

Gross revenue (in millions of dollars): 17,814

Total profits (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. L3Harris Technologies, Inc. (NYSE:LHX)’s products include night vision equipment, wireless equipment, C6ISR systems and products, and surveillance solutions. Although its revenue will decline in 2021, L3Harris Technologies, Inc. (NYSE:LHX) has yet to improve its operating income.

12. China South Industries Group

Gross revenue (in millions of dollars): 44,374

Total profits (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)

Gross revenue (in millions of dollars): 38,469

Total profits (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 by arms sales alone in 2020. Operating in more than 45 countries, General Dynamics Corporation (NYS:GD) currently has ten subsidiaries. General Dynamics Corporation (NYS:GD) is a supplier of several products in the defense sector, including but not limited to combat vehicles, communications systems, nuclear-powered submarines, tanks, and weapons systems.

10. The Boeing Company (NYSE:BA)

Gross revenue (in millions of dollars): 62,286

Gross profits (in millions of dollars): -4,202

Total assets (in millions of dollars): 138,522

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Total number of employees: 142,000

One of the two defense contractors best known globally for its commercial aircraft, The Boeing Company (NYSE: BA ) is a major American corporation and the largest exporter in the United States by dollar value. The Boeing Company (NYSE:BA) is involved in the production of satellites, spacecraft, and military aircraft.

9. China Aerospace Science & Industry

Gross revenue (in millions of dollars): 40,856

Gross profits (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 in the list of the world’s largest contractors are state-owned companies involved in the production of strategic and tactical missiles, along with on-the-ground investment. It is said to be the largest producer of missiles in China.

8. Northrop Grumman Corporation (NYSE:NOC)

Gross revenue (in millions of dollars): 35,667

Total profits (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 one of the world’s largest arms producers, as well as a major military technology supplier. Northrop Grumman Corporation (NYSE:NOC) has won the Collier Trophy 8 times. Northrop Grumman Corporation (NYSE:NOC) is known for producing the world’s only known stealth bomber, which is now being replaced by the company’s latest development, the B-21 Raider.

7. China Aerospace Science & Technology

Gross revenue (in millions of dollars): 43,420

Total profits (in millions of dollars): 3,099

Total assets (in millions of dollars): 95,825

Total number of employees: 180,521

As its primary predominance is being the prime contractor for the Chinese space program, it is also involved in the production of strategic and tactical missiles and ground equipment.

6. China Electronics Technology Group

Gross revenue (in millions of dollars): 55,457

Total profits (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 technical support to China’s military, including communications equipment, IT infrastructure, electronic equipment and software development.

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Disclosure: None. 15 World’s largest defense contractor in 2022 Originally published on Insider Monkey.

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