Copenhagen, Denmark - The world's 100 largest armaments companies saw a significant surge in weapon sales last year, driven by the conflicts in Ukraine and Gaza, along with broader global tensions.

According to a report published this week by the Stockholm International Peace Research Institute (SIPRI), total revenues in 2023 across the 100 companies rose by 4.2%, adjusted for currency fluctuations, totaling $632 billion, following a decline the previous year.

Arms revenues refer to revenues generated from the sales of military goods and services to military customers domestically and abroad.

SIPRI noted that many arms companies had ramped up production and forecast that the upward trend in arms sales is likely to continue.

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"Large backlogs in orders and surging demand for arms during 2022 and 2023 suggest that the total Top 100 arms revenue may rise significantly in the years ahead," the report said.

US-based companies accounted for nearly half of the global arms revenue in a 2.5% increase to $317 billion, according to SIPRI.

The two largest arms companies in the world – Lockheed Martin and RTX (formerly Raytheon Technologies) – however, recorded slight declines.

According to SIPRI, smaller arms producers were generally more efficient in meeting the demand created by the wars in Ukraine and Gaza, as well as tensions in East Asia and various rearmament programs.