The war involving Iran has pushed demand for weapons systems used by the United States (US) military, placing major defence contractors at the centre of production and supply chains linked to the conflict.

 

Data from the Stockholm International Peace Research Institute (SIPRI) shows that US companies dominate the global defence industry, accounting for $334 billion of the $679 billion generated by the world’s top 100 defence firms in 2024. The United States hosts 39 companies on SIPRI’s list of the top 100 defence contractors, compared with eight from China.

 

The largest US defence contractors include Lockheed Martin, RTX, Northrop Grumman, General Dynamics and Boeing. These firms manufacture aircraft, missile systems, space technology and other military equipment used by the US armed forces.

 

Lockheed Martin, the world’s largest defence contractor, generated $68.4bn in revenue in 2024. The company produces systems including the F-35 Lightning II stealth fighter, F-22 Raptor jets, THAAD missile defence systems, M142 HIMARS launchers, MGM-140 ATACMS missiles and the Precision Strike Missile (PrSM).

 

RTX, created through a 2020 merger between Raytheon and United Technologies, reported $43.6bn in defence revenue in 2024. Its Raytheon division manufactures Tomahawk cruise missiles and MIM-104 Patriot missile systems used in missile defence.

 

Northrop Grumman reported $37.9bn in defence revenue in 2024 and produces systems including B-2 stealth bombers and radar technology used in E-3 Sentry airborne warning and control aircraft.

 

General Dynamics reported $33.6bn in defence revenue in 2024 and develops nuclear submarines, battle tanks and armoured vehicles.

 

Boeing, founded in 1916, reported $30.6bn in defence revenue in 2024 and manufactures aircraft and military systems including the B-1 bomber, F-15 fighter jets, EA-18G Growler aircraft, P-8A Poseidon surveillance aircraft and RC-135 reconnaissance platforms.

 

According to SIPRI, global defence spending increased by 9.4 percent in 2024 to $2.7 trillion. NATO members have also pledged to raise defence spending from 2 percent to 5 percent of their gross domestic product by 2035.

 

The expansion in military spending has coincided with the escalation of the war involving Iran. The United States has already spent billions of dollars on weapons linked to the conflict.

 

US President Donald Trump met the chief executives of major defence companies at the White House. Executives from RTX, Lockheed Martin, Boeing, Northrop Grumman, BAE Systems, L3Harris Missile Solutions and Honeywell Aerospace attended the meeting.

 

Following the meeting, the companies agreed to “quadruple production” of what Trump described as “exquisite class” weaponry.

 

The United States already allocates close to $1 trillion to military spending in 2025, exceeding the combined total of the next nine countries. Trump has proposed increasing this spending to $1.5 trillion by 2027.

 

Stock prices of major defence companies have also risen during the conflict. Shares of Northrop Grumman increased by five percent, RTX rose by 4.5 percent and Lockheed Martin gained three percent during the past week.

 

The United States military has deployed multiple weapons systems in operations targeting Iranian facilities. According to US Central Command, Operation Epic Fury has involved more than 20 weapons systems across air, land, sea and missile defence operations.