In accordance with the established tradition, in mid-March, the Stockholm Peace Research Institute (SIPRI) begins publishing information about last year's events on the international arms and equipment market. On March 16, the Institute published the first portion of information on sales of weapons and various military equipment in 2010-2014. Swedish experts analyzed the deals concluded last year and identified a list of the largest arms manufacturers and buyers. In addition, the new report contains a comparison of indicators for the considered and the previous five-year period.
General trends
Comparison of the international arms market in 2005-2009 and 2010-2014 shows that the total volume of transactions continues to grow. Despite the fluctuations observed from year to year, over the past five years, arms sales have increased by 16%. At the same time, the market growth in 2014 (compared to the previous 2013) is smaller than in the case of five-year periods, which may be associated with a gradual increase in sales volumes after the failure of the beginning of the 2000s.
In a press release to the report, it is indicated that the United States has kept the first place in sales of weapons and equipment in the past five years. For the American defense industry in 2010-2014 accounted for 31% of the total volume of military supplies. At the same time, over the past five years, the export of American weapons has grown by 23% in comparison with the previous five-year period. SIPRI experts note that the United States traditionally uses military-technical cooperation as a foreign policy instrument and a means of ensuring international security. In recent years, a new one has been added to such "functions": export helps to preserve the defense industry in the face of a reduction in its own orders.
Russia remains in second place in the list of the largest exporters, occupying 27% of the market. Over the past five years, Russian arms exports have grown by 37%. China is now the third largest supplier in the world. The volume of sales of Chinese weapons in five years has grown by 143%, although even in this case, China is still unable to catch up with the market leaders.
SIPRI experts point out some new trends related to arms importing countries. Thus, the countries of the Cooperation Council of the Gulf States continue to arm themselves. The total purchases of the six countries of this organization have grown by 71% over the past five years. In addition, these states account for 54% of purchases made by all countries in the Middle East. Military imports to Saudi Arabia are growing especially actively. It has approximately quadrupled, pushing Saudi Arabia to second place in the consumer rating. The reason for such phenomena is the need to re-equip the armies, due to both the obsolescence of existing equipment and new military threats.
Asia continues to arm itself. Of the 10 leading countries in the field of arms purchases, half are located in Asia. India retains first place with 15% of the world's total purchases. In addition, the top 10 includes China (5%), Pakistan (4%), South Korea and Singapore (3% each). Thus, only five Asian states account for 30% of world arms imports. Imports to India continue to grow, accounting for 34% of all Asian purchases. At the same time, China in 2010-2014. reduced imports by 42%. The prerequisites for such phenomena in the Asian arms market are called the need to renew the armed forces, as well as a high dependence on imports. The latter factor is clearly illustrated by China, which develops its industry and, as a result, reduces purchases.
The press release also mentions a number of other trends that have been or have been observed recently:
- For five years, European countries have reduced purchases by 36%. SIPRI experts believe that this reduction may end in the near future. Against the background of the Ukrainian crisis, some European countries are planning to increase defense spending and, as a result, arms purchases;
- In 2010-2014. sales of weapons manufactured in Germany fell 43%. Such losses could be compensated for in the future, when orders from several Middle Eastern countries received last year begin to be fulfilled;
- Azerbaijan is actively rearming, whose imports have grown by 249% in the last five-year period;
- The situation in Africa is changing: Algeria has become the largest African manufacturer and seller of weapons, followed by Morocco. Both of these countries show relatively high sales growth;
- Iraq, Cameroon and Nigeria are rearming to fight various terrorist groups. For example, the Iraqi military last year received a number of weapons from several countries, including the United States and Russia;
- Many countries are showing increased interest in various anti-missile systems. In particular, such weapons are acquired by the countries of the Middle East.
Exporting countries
The press release contains only a few highlights of the new study. In the report, SIPRI specialists provide a lot of other, no less interesting information. For example, it is argued that in 2010-2014. only 60 states were involved in the supply of weapons and military equipment. Despite this, the bulk of supplies are carried out by only five countries. The five largest arms suppliers - the United States, Russia, China, Germany and France - supply 74% of all products on the international market. The total sales of the top five have grown by 14% over the past five years.
The United States has a 31% international market share, up 2% from 2005-2009. For five years, the Americans sold weapons worth 43.876 billion dollars. The United States leads not only in terms of supplies, but also in terms of the number of buyers: American weapons are supplied to 94 countries. Most of all (48%) American weapons are supplied to the countries of Asia and Oceania. 32% of sales are in the Middle East, 11% in Europe. Notably, all of the buying countries have a relatively small share of US exports. So, the largest buyer in 2010-2014. became South Korea with 9% of all purchases. The second and third places in the rating of buyers from the United States are occupied by the UAE and Australia with a share of 8%.
Over the past five years, Russia's share in the international arms market has grown from 22% to 27%. The total value of contracts for this period is $ 37.383 billion. Russian weapons are supplied to 56 countries of the world. In addition, SIPRI experts believe that Russia is supplying arms to the Lugansk and Donetsk People's Republics. A characteristic feature of Russian military exports is a large number of orders from the same countries. Thus, the three largest buyers of Russian weapons - India, China and Algeria - share about 60% of the export products of the Russian defense industry. To India in 2010-2014 39% of Russian supplies accounted for, China - 11%, Algeria - 8%. This, in particular, affects the distribution of supplies by region. Asia and Oceania account for 66% of supplies, Africa and the Middle East - 12% and 10%, respectively.
Over the past five years, Chinese exports have grown by 143% to reach $ 7.162 billion, which has allowed China to increase its share of the international market from 3% to 5%. Thanks to this, in the overall rating of suppliers for 2010-2014. China climbed to third place, displacing Germany and France. China supplies its products to 35 countries, with only three buyers accounting for 68%. Pakistan receives 41% of Chinese arms exports, Bangladesh 16%, Myanmar 12%.
Germany is cutting supplies and losing its position in the ranking of the largest suppliers. In 2010-2014. German exports fell 43% to $ 7, 387 billion, which is why the country dropped from third to fourth place in the ranking of the largest suppliers. Previously, Germany had an international market share of 11%, but now it has shrunk to 5%. The main buyers of German weapons are European countries, which account for 30% of supplies. 26% of products are sent to the countries of Asia and Oceania, 24% - to the countries of North and South America. Middle Eastern countries received 20% of production, but this figure is likely to decline. Last year, the German leadership decided to change its policy in the field of military-technical cooperation. Among other things, it is planned to reduce supplies to the Middle East, where there are political problems. The largest buyer of German weapons is the United States (11%), the second and third places in this list are occupied by Israel and Greece with 9% and 7%, respectively.
Together with Germany, France, now the fifth largest arms supplier in the world, dropped one notch in the ranking. Its exports in the past five years have decreased from $ 9.974 billion (2005-2009) to $ 7.44 billion - a loss of 27%. Because of this, the occupied share of the international market decreased from 8% to 5%. France has export contracts with 74 countries around the world. At the same time, Asia and Oceania account for 29% of supplies, Africa - 20%, and the Middle East - 20%. Europe and the Americas, in turn, buy only 16% and 14%, respectively. Most of the French products go to Morocco (18%). China and the UAE are supplied with 14% and 8% each. It is expected that the state of French military exports will benefit from new contracts for the supply of aircraft, primarily an agreement with Egypt for 24 Dassault Rafale fighters.
Importing countries
Between 2010 and 2014, 153 countries were engaged in updating their armed forces through import purchases. At the same time, the volumes of purchases varied significantly, which led to a significant difference between the shares of different countries. Thus, the five largest importers - India, Saudi Arabia, China, the United Arab Emirates and Pakistan - accounted for about a third of all purchases.
The largest importer over the past five years is India, which previously ranked second in terms of purchases. The total volume of its import contracts increased from $ 8.781 billion to $ 21.036 billion. As a result, the share of Indian purchases in the market increased from 7% to 15%. 70% of military products were supplied to India by Russian enterprises. Other countries supply the Indian armed forces with their products in much smaller quantities. Thus, the share of the United States (second place) in Indian imports is only 12%, while Israel (third place) supplies only 7%. India claims to be a regional leader, which affects its purchases of weapons and equipment.
The second place in the ranking of importing countries is now occupied by Saudi Arabia. In 2005-2009. this country acquired weapons worth $ 1.666 billion and therefore was in 22nd place in the overall ranking. The gradual increase in costs to 6, 955 billion (2010-2014) brought Saudi Arabia to second place. The main suppliers of weapons for this country are the United Kingdom and the United States - their shares in imports are 36% and 35%, respectively. France is in third place in terms of supply with 6%.
At the end of the last decade, China was the largest buyer of weapons. In 2005-2009. he purchased weapons and equipment worth $ 11.445 billion. In 2010-2014. the cost of imported products fell to $ 6.68 billion, which is why China dropped to third place in the ranking. The share of Chinese orders in the international market, in turn, fell from 9% to 5%. Russia receives the bulk of Chinese orders (61%). The second and third importers to China in recent years were France (16%) and Ukraine (13%). The main reason for the decline in imports is the gradual development of the Chinese defense industry. A large number of necessary products are manufactured independently, although a wide range of products still have to be purchased from foreign countries.
The fourth place in the ranking of the largest importers of weapons and equipment is kept by the United Arab Emirates. In 2005-2009, this state spent 6, 421 billion dollars on imported military products, in 2010-2014. - 6, 186 billion. Due to cost cuts, the country's share in world imports has also decreased in absolute terms. Earlier it was 5%, now it is 4%. The UAE purchases most of its weapons from the United States (58%). France and Russia have significantly smaller shares in the Emirati imports, which supplied 9% of the required products each.
Pakistan closes the top five among importers. In the second half of the last decade, this state spent $ 3.717 billion on purchases and was in eighth place in the ranking. In 2010-2014. costs increased to 6, 102 billion and brought the country to the fifth line. Pakistan's share in world imports increased from 3% to 5%. The main contribution to this was made by China, which fulfilled 51% of Pakistani orders. The second and third suppliers in terms of volume of contracts are the USA (30%) and Sweden (5%).
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As you can see, in the past five years, several major trends have been observed on the international arms and military equipment market. First of all, it is necessary to note the gradual growth of the market, continuing after the failure of the beginning of the 2000s. In addition, the ratings of exporters and importers have changed over the past five years. It is noteworthy that there were minimal changes in the supplier rating due to the increase in Chinese exports. At the same time, the leading countries represented by the United States and Russia are gradually increasing their market share, displacing competitors and getting new contracts.
At the same time, the list of importers has undergone much larger changes. Some countries are increasing spending on imported weapons, while others are cutting. Because of this, serious changes are observed even in the top five. First of all, the sharp rise in purchases of Saudi Arabia and the reduction in Chinese imports are of interest.
The information published by SIPRI is of great interest to both specialists and the interested public. A few days ago, information was published on the state of the international arms market in 2010-2014. In the near future, Stockholm specialists are to publish several other reports describing the various features of the market and its state in the past 2014.
