The Stockholm International Peace Research Institute (SIPRI) has published its latest report on the state of the international arms and military equipment market. This time, the analysis was carried out on the supply of military products, carried out from 2009 to 2013. Studies have shown that the total volume of supplies of weapons and military equipment during this period was 14% higher than in 2004-2008.
General figures
The largest arms suppliers over the period under review were the United States with 29% of the total supply. The second place in the overall rating was taken by Russia (27%). Germany (7%), China (6%) and France (5%) took the third to fifth places. It is noted that these five countries account for three quarters of the total world supply of arms and military equipment. The first two countries of the ranking (USA and Russia), in turn, provide 56% of the world market. The SIPRI Institute experts note that, despite the problems of recent decades, Russia has been able to maintain its production potential and is constantly increasing the volume of military-technical cooperation with other countries. So, from 2009 to 2013, Russian enterprises transferred weapons and equipment to the armies of 52 states.
India has become the largest arms importer over the past five years. In comparison with the previous "five-year" plan, this state has increased the volume of purchases by 111%. As a result, the share of Indian imports doubled and reached 14% of the total market. The second and third places in terms of purchases are occupied by Pakistan and China, whose market share does not exceed 4-5 percent. It should be noted that in 2009-2013 Pakistan showed even greater growth in imports than India. During this period, Pakistani import costs increased by 119%.
For ease of comparison, the countries of the world have been divided into five groups according to their geographic location: Asia and Oceania, Africa, the Middle East, Europe, North and South America. As in 2004-2008, Asia and Oceania rank first in the import of weapons and military equipment. At the same time, over the past five years, the share of Asia and Oceania in world imports has grown from 40 to 47 percent. The second place is occupied by the Middle East with 19% of world purchases. The first three importing regions is closed by Europe, which accounted for 14% of all purchases. Interestingly, in the previous five years, the shares of the Middle East and Europe were equal - 21% each. The Americas and Africa in 2008-2013 made only 10 and 9 percent of purchases, respectively. In the case of the Americas, there is a slight decrease in share (only 1%), while Africa, in turn, increased its imports by 2 percent.
Exporting countries
The United States remains the largest exporter of arms and military equipment. This country alone spent 29% of all world supplies during the period under review. In comparison with 2004-2008, the volume of US military exports increased by 11%. At the same time, however, the American share of the world market fell by 1%.
Aircraft became the mainstay of American military exports. More than 250 aircraft have been delivered to or ordered from the United States in the past five years. This technique accounted for 61% of US exports. In the future, a large share of aircraft in the export structure should remain, which will be facilitated by the latest Lockheed Martin F-35 Lightning II fighters. Various countries intend to purchase a large number of such aircraft at a fairly high price. It is the combination of the quantity and price of this equipment that should affect the structure of American military exports.
An important source of American income is the supply of various air defense systems. Over the past five years, the United States has transferred such products to Germany, Japan, the Netherlands, Taiwan and the United Arab Emirates. In addition, contracts were signed for the supply of similar equipment to Kuwait, Saudi Arabia and South Korea.
The share of Russian supplies in the total market structure in 2009-2013 increased to 27%. The growth in comparison with the previous five-year period was 28%. Over the past five years, Russia has sold arms and military equipment to 52 countries, but almost two-thirds of its exports are destined for only three countries. India accounted for 38% of all Russian supplies, the share of Chinese purchases is 12%, the share of Algeria is 11%. Overall, 65% of Russian exports went to Asia and Oceania. 14% of production went to Africa, 10% to the Middle East.
In five years, about 220 aircraft of various types were built or contracted, which accounted for 43% of the total volume of Russian military exports. In addition, in 2009-2013, Russia became the world's largest supplier of warships and boats, occupying 27% of this market. The most notable project of this kind has been the modernization of the Vikramaditya aircraft carrier, which was handed over to the Indian Armed Forces last year.
In 2009-2013, as in the previous five-year period, Germany retained its third place in the ranking of the largest suppliers of weapons and equipment. The share of the German defense industry in the world market was 7%, but sales fell by 24%. The largest buyer of military equipment and weapons produced in Germany was the United States (10% of German exports). The second and third places were taken by Greece and Israel, the shares of these countries are slightly more than 8%. The European states jointly acquired 32% of the export of German products. The share of Asia and Oceania reached 29%, North and South America - 22%.
Germany remains the largest seller of submarines. From 2009 to 2013, eight submarines were built in Germany for five countries. As of the end of last year, the German industry had orders for 23 more submarines. Tanks are an equally important export item. Over the past five years, Germany has sold to seven countries (two of them are outside Europe) 650 Leopard 2 tanks of various modifications. In terms of the number of tanks sold, Germany in the period under review was second only to Russia.
China's military exports demonstrated a uniquely high growth rate. In 2009-2013, in comparison with the previous "five-year" period, the volume of supplies of equipment and weapons made in China increased by 212%. China's share in the world market increased from 2% to 6%. In recent years, China has supplied arms and military equipment to 35 countries. These were mainly small and poor states of Asia and Africa. Thus, most of the Chinese products sold abroad went to Pakistan (47%). 13% of exported equipment and weapons went to Bangladesh, while Myanmar's share was 12%.
China is actively developing its industry and mastering new technologies. This is what allowed him, in a relatively short time, not only to re-equip the army, but also to increase his share in the international arms and equipment market. It is noteworthy that China is constantly expanding the circle of countries that buy its products. For example, last year Turkey chose the Chinese HQ-9 anti-aircraft missile systems, preferring them to the developments of several other countries.
France's share in the international arms and equipment market in 2009-2013 was 5%. For a number of reasons, the volume of French exports decreased: in comparison with 2004-2008, they fell by about 30%. Nevertheless, even having lost 4% of the world market, France managed to retain its fifth place in the ranking of the largest exporters. Over the past five years, French enterprises have fulfilled contracts with 69 countries. The supply volumes were distributed as follows: the countries of Asia and Oceania acquired 42% of French export equipment and weapons, Europe bought 19%, Africa - 15%, the Middle East - 12%, North and South America - 11%. The most active buyer of French products was China (13%). Morocco and Singapore acquired 11 and 10 percent of French weapons and equipment, respectively.
Broad military-technical ties between France and China are primarily due to the sale of licenses for the construction of helicopters and the supply of various electronic equipment. In the very near future, India should become one of the main buyers of French-made equipment. The signing and execution of contracts for the supply of 49 Dassault Mirage 2000-5 fighters, 126 Dassault Rafale aircraft and 6 Scorpene submarines should lead to such consequences.
In the sixth place in the ranking of exporting countries for 2009-2013 is the UK with a market share of 4%. An interesting fact is that between 2004 and 2008 the British market share was exactly the same. This country sent 42% of its exports to Saudi Arabia, 18% to the United States and 11% to India. The seventh was Spain, whose share increased to 3% (2% in the previous five years). Norway (21%) became the main buyer of Spanish equipment and weapons, while the second and third places were occupied by Australia (12%) and Venezuela (8%). Ukraine, which took the eighth place in the rating of suppliers, also increased its share from 2% to 3%. 21% of Ukrainian products went to China, 8% went to Pakistan, and 7% were sold to Russia. Italy took ninth place in the overall ranking with three percent of the world market. India (10%) became the main buyer of its products. It is followed by the UAE (9%) and the USA (8%). Israel closes the ten largest exporters with two percent of the total market. 33% of Israeli equipment and weapons were sold to India, 13% to Turkey, 9% to Colombia.
Importing countries
India became the largest buyer of foreign weapons and military equipment in 2009-2013. Compared to the previous five-year period, its share of purchases doubled and reached 14%. The main foreign supplier of military products for the Indian armed forces was Russia, which accounted for 75% of all orders. The second largest supplier is the USA with 7%. The third place in terms of sales in India was taken by Israel with a share of 6%. It is noteworthy that contracts with India account for a third of Israel's military exports. For India, in turn, they are equal to only a few percent.
The main item of arms and equipment purchases by India is combat aircraft. Over the past five years, the Indian Air Force has received 90 of the ordered 220-odd Russian-made Su-30MKI fighters, as well as 27 of 45 MiG-29K fighters. In addition, in the future, deliveries of 62 Russian MiG-29SMT fighters and 49 French Dassault Mirage 2000-5 will begin. A recent tender should result in the supply of 126 Dassault Rafale fighters. In the future, it is possible to supply an export version of the Russian T-50 aircraft (FGFA program). The total number of such fighters should exceed 100-120 units.
The number of countries buying weapons and equipment abroad is much higher than the number of manufacturers of such products. Because of this, in particular, the gaps between importers are noticeably smaller than in the case of exporters. Thus, China, which ranks second among the buyers of foreign equipment and weapons in 2009-2013, acquired only 5% of the total amount of export military products. At the same time, its indicators fell markedly: in 2004-2008, China accounted for 11% of all world purchases. The main supplier of arms and military equipment to China is Russia (64% of all Chinese purchases). France ranks second with 15%, and Ukraine closes the top three foreign suppliers of the Chinese armed forces with 11% of contracts.
Pakistan became the third in the ranking of importing countries. This country is constantly increasing its defense spending, thanks to which the total volume of import contracts over the past five years is 119% higher than in the previous five-year plan. As a result, Pakistan's share in global arms and equipment purchases increased from two to five percent. The main seller working with Pakistan is China. From 2009 to 2013, China's share of Pakistani overseas purchases was 54%. The second place was taken by the United States, which supplied 27% of all imported products. The third largest partner of Pakistan is Sweden (6%).
The United Arab Emirates is in fourth place among the buyers of weapons and equipment with four percent of the total world purchases. In recent years, this state has been in no hurry to increase defense spending, which is why its share in purchases has dropped from 6% to 4% over the past five years. 60% of imports to the UAE military are carried out by the United States. Russian and French weapons and military equipment account for only 12 and 8 percent, respectively.
Saudi Arabia, thanks to a gradual increase in defense spending, was able to rise to fifth place among the countries-importers of weapons and equipment. Its share in the global imports of such products exceeded 4%. For comparison, in 2004-2008 this figure was half as much. 44% of foreign military products come to Saudi Arabia from the UK. 29% of imports accounted for American equipment and weapons, and the third place was occupied by France with 6%.
The United States is in sixth place in the rating of importers according to SIPRI, behind Saudi Arabia. The United States slightly increased the volume of purchases of foreign equipment and weapons: in 2004-2008, they accounted for about three percent of world imports, in 2009-2013 - 4%. The United States buys the necessary equipment, weapons or equipment from several friendly states, and the volumes of cooperation with different countries do not differ too much. Thus, Great Britain supplied 19% of all American imports, while Germany and Canada accounted for 18 and 14 percent, respectively.
4% of the total volume of world purchases of equipment and weapons led Australia to seventh place in the ranking. Most of these products (76%) come to Australia from the United States. In addition, Spain (10%) and France (7%) are among the top three suppliers to Australia. South Korea ranks eighth in the list of importers with 4% of purchases. 80% of weapons and military equipment this state receives from the United States. In addition, supplies from Germany (13%) and France (3%) are worthy of attention.
The ninth country in terms of purchases of foreign products is Singapore. Lacking a developed defense industry, this city-state is forced to actively purchase weapons and equipment abroad. Economic opportunities allowed Singapore to increase its share of global purchases from 2% (2004-2008) to 3% (2009-2013). In a similar way, the share of the country's purchases increased from the tenth place - Algeria. The vast majority of imported military products (91%) this North African state receives from Russia. The first and second places are separated by a colossal gap. Thus, France supplied only 3% to Algeria, and Great Britain only 2% of the total amount of imported weapons and equipment.
Arms market and crises
Some recent events may or have already affected the supply of arms and military equipment. For example, due to last year's crisis in Egypt, the United States decided to suspend the implementation of existing treaties with that country. Because of this, deliveries of previously ordered equipment have been frozen: F-16 Fighting Falcon fighters, AH-64D Apache attack helicopters and M1A1 main tanks. The situation is similar with the delivery of C-295 transport aircraft: Spain has decided not to transfer them to the Egyptian military for the time being. At the same time, however, Russia has already transferred the ordered Mi-17V-5 helicopters to Egypt.
According to SIPRI, Russia for some time has not been able to transfer the previously ordered S-300PMU2 anti-aircraft missile systems and MiG-29 fighters to Syria.
Against the background of problems in other Middle Eastern countries, the situation in Iraq has stabilized. Official Baghdad got the opportunity to actively develop its armed forces. At the end of last year, the Iraqi military received the first 4 Russian-made Mi-35 helicopters. In addition, deliveries of South Korean T-50IQ combat trainers and American F-16C fighters should begin in the near future.
Full text of the report:
