Top 10 Largest Defense Contractors in the World by Market Cap (Updated 2024)

As global tensions rise and the demand for cutting-edge defense systems intensifies, the largest defense contractors in the world are at the forefront of shaping modern security.

These companies don’t just produce weapons – they define the future of warfare and national security, making them pivotal players in both politics and technology.

The biggest defense contractors are integral to national security, supporting military operations globally by developing sophisticated defense-related equipment and services.

In this article, our experts at Business2Community shed light on the most valuable companies within the defense sector, using market capitalization as a primary metric.

Note: The corporations below have benefitted from defense spending, partnering with federal government agencies and departments like the Department of Defense and the Defense Information Systems Agency.

Top 10 Largest Defense Contractors in the World (by Market Cap)

1. Raytheon Technologies – Raytheon Technologies, with a market cap of $134.37 billion, leads the defense sector by offering cybersecurity solutions and advanced military electronics.
2. Honeywell – Honeywell, valued at $130.52 billion, specializes in aerospace systems and has innovated in lower-carbon aviation fuel.
3. Lockheed Martin – Lockheed Martin, with a $110.05 billion market cap, is renowned for producing the F-35 fighter jet and cutting-edge radar systems.
4. Safran – Safran, worth $92.71 billion, focuses on jet engines and aerospace technology, significantly contributing to Europe’s space endeavors.
5. General Dynamics – General Dynamics, with a market cap of $80.87 billion, produces military vehicles and submarines for global defense forces.
6. Northrop Grumman – Northrop Grumman, valued at $68.38 billion, is a leader in stealth bombers and missile defense systems.
7. BAE Systems – BAE Systems, with a market cap of $51.25 billion, develops advanced military technology including fighter aircraft and combat vehicles.
8. L3Harris Technologies – L3Harris Technologies, valued at $39.73 billion, is known for its advanced communication systems and electronic warfare technology.
9. Thales – Thales, worth $36.13 billion, provides military equipment, space technology, and cybersecurity systems globally.
10. Hindustan Aeronautics (HAL) – HAL, with a $28.79 billion market cap, produces military aircraft like the Tejas fighter jet and Dhruv helicopter for India’s defense forces.

The 10 World’s Biggest Defense Contractors

The defense sector plays a pivotal albeit controversial role globally, with the top companies collectively receiving billions in total contract funds awarded by defense departments annually.

Defense spending in 2023 jumped over 9% to an unprecedented $2.2 trillion, according to the UK-based International Institute for Strategic Studies, bolstered by NATO member spending.

Here are the companies building their market dominance through taking a piece of that pie.

1. Raytheon Technologies – $134.37 Billion

Founded as a new entity in 2020 through the merger of Raytheon Company and United Technologies Corporation, Raytheon Technologies has positioned itself as a global aerospace and defense leader.

With its headquarters in Waltham, Massachusetts, USA, the company’s revenue in 2023 stood at $68.92 billion, a 3% uptick from the previous year.

Raytheon Technologies is known for its broad spectrum of high-tech systems, including cybersecurity solutions and advanced electronics for military applications.

In 2023, Raytheon Technologies sold its cybersecurity and intelligence division for $1.3 billion to an undisclosed buyer, following a 21% decline in total sales for the third quarter.

CEO Greg Hayes highlighted the division’s alignment with US government intelligence priorities and the decision’s aim to optimize Raytheon’s portfolio.

2. Honeywell – $130.52 Billion

Honeywell International Inc., based in Charlotte, North Carolina, USA, reported revenues of $36.66 billion in 2023.

The company was founded in 1906, and has evolved from its origins in heating control systems to a diverse global conglomerate, spanning aerospace, building technologies, and performance materials sectors.

In 2023, Honeywell announced a new technology to produce lower-carbon aviation fuel from green hydrogen and carbon dioxide, aiming to cut greenhouse gas emissions from aviation. The process, reducing emissions by 88%, uses renewable energy sources and industrial carbon dioxide.

At the end of 2022, a subsidiary of Honeywell paid over $180 million in fines for violating the Foreign Corrupt Practices Act. The SEC was investigating UOP LLC for bribes made to officials in a Brazilian state oil company. The deal included admissions of guilt for attempting to pay $4 million to a Petrobras official.

3. Lockheed Martin – $110.05 Billion

Lockheed Martin, an American defense, arms, security, and aviation industry corporation with worldwide interests, was founded in 1995.

The Bethesda, Maryland-based company stands out as the world’s largest defense contractor by revenue, with the most recent figures indicating $67.57 billion in revenue generated in 2023, up from $66 billion the previous year.

Lockheed Martin is known for the F-35 Lightning II fighter jet, among other high-profile military equipment.

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In 2024, Lockheed Martin delivered its 75th APY-9 radar for the Northrop Grumman-built E-2D Advanced Hawkeye.

Lockheed’s radar systems provide critical data for enhancing security and decision-making capabilities for military forces and first responders.

The company is the biggest US government contractor across all departments, with over $46 billion in contracts in 2022.

4. Safran – $92.71 Billion

Headquartered in Paris, France, Safran is a key player in the aerospace and defense department sectors, with a reported revenue of €23.19 billion ($24.81 billion) in 2023.

Founded in 2005 after a merger of Snecma and Sagem in 2005, Safran has a rich history that traces back to the early days of aviation. It is particularly recognized for its jet engines and aerospace components.

In 2016, Airbus and Safran completed a merger of their space operations to enhance Europe’s competitiveness against SpaceX, finalizing a deal to develop the Ariane 6 rocket for satellite launches. Three Safran-owned companies are among the top 10 suppliers for Airbus‘ aviation operations.

With a focus on operational efficiency, the merged entity, Airbus Safran Launchers, consolidates industrial assets and pledges to counter SpaceX’s low-cost services by introducing cutting-edge technologies.

5. General Dynamics – $80.87 Billion

With a reported revenue of $42.3 billion in 2023 equating to a 7.3% year-over-year increase, General Dynamics is a prominent manufacturer in the aerospace and defense industry. Headquartered in Falls Church, Virginia, USA, the company has been in operation since 1952.

General Dynamics’ product portfolio includes military vehicles, submarines, and communication systems.

In May 2023, General Dynamics Mission Systems–UK was chosen by BAE SYSTEMS to collaborate on developing proposed solutions for the next-generation mission computing cluster architecture for the Eurofighter Typhoon.

The new system aims to provide enhanced computing power, secure storage, and high-speed data networking, supporting the Eurofighter’s future capability growth and addressing obsolescence concerns.

However, it also lost a UK Ministry of Defence contract in December 2023 when it failed to provide elements of a new communications system for the Army.

The same month, a lawsuit was filed in Virginia, US, claiming General Dynamics and other shipbuilding companies were conspiring to suppress the wages of marine engineers.

6. Northrop Grumman – $68.38 Billion

Also based in Falls Church, Virginia, USA, Northrop Grumman is another major player in the aerospace and defense sectors, with an annual revenue of $39.3 billion reported in 2023 – up from $33.6 billion in 2022.

Founded in 1939, the company has made contributions to the development of military technology, including stealth bombers and unmanned aerial vehicles.

In 2024, Northrop Grumman achieved a milestone in missile defense with its successful integration test of the Integrated Battle Command System (IBCS) with a Lower Tier Air and Missile Defense Sensor (LTAMDS) and a Patriot missile.

This test demonstrated the system’s capability to acquire, track, and engage a long-range cruise missile surrogate, highlighting advancements in the US Army’s Air and Missile Defense modernization strategy.

Along with its reputation for naval equipment and precision weapons, Northrop Grumman was a major partner in delivering the James Webb Space Telescope, including working on the mechanism to fold and unfold the intricate array of mirrors.

7. BAE Systems – $51.25 Billion

Founded in 1999 through a merger of British Aerospace and Marconi Electronic Systems, BAE Systems PLC is now one of the largest defense contractors in the world. The company is headquartered in London, UK, and reported a 9% increase in annual revenues in 2023, at £23.08 billion ($29.08 billion).

BAE Systems is known for its advanced military technology, including fighter aircraft and combat vehicles.

In 2021, BAE Systems and Thales UK began a collaboration on the Laser Directed Energy Weapon (LDEW) Demonstrator project, known as DragonFire. The project is part of the MOD’s Novel Weapons Programme.

With £100 million in contracts, the project aims to develop and trial advanced demonstrators for the Royal Navy, supporting job creation and testing the integration of laser capabilities on a Type 23 frigate.

8. L3Harris Technologies – $39.73 Billion

L3Harris Technologies is an American technology company that specializes in providing defense and aerospace systems. Founded in 2019 after the merger of L3 Technologies and Harris Corporation, the company reported revenues of $19.41 billion in 2023 with $23 billion of orders awarded.

Headquartered in Melbourne, Florida, L3Harris is known for its advanced communication systems and electronic warfare technology.

In 2024, L3Harris and UAE-based Calidus Aerospace expanded their partnership to enhance airborne capabilities in the UAE, MENA (Middle East and North Africa), and globally, focusing on producing mission equipment for the B-250 aircraft and developing multi-mission platforms.

This collaboration aims to strengthen L3Harris’ presence in the region and broaden its airborne ISR portfolio while supporting the UAE Air Force’s B-250 program.

9. Thales – $36.13 Billion

Founded in 1893, Thales is a French multinational company that operates primarily in aerospace and defense.

With revenues of $18.81 billion in 2023, the company has a diverse product portfolio that includes military equipment, space technology, and cybersecurity systems.

Headquartered in Paris, France, Thales has a global presence with operations in over 50 countries. The French government has a 26% ownership stake in the company and around 50% of employees are based in the country.

In 2024, Thales successfully delivered the first CAPTAS-4 sonar for the US Navy, an advanced variable depth sonar system designed to detect, locate, classify, and track stealthy submarines.

10. Hindustan Aeronautics – $28.79 Billion

Hindustan Aeronautics Limited (HAL) is an Indian aerospace and defense company that was founded in 1940. Headquartered in Bangalore, India, the company reported a total revenue of INR260.67 billion ($3.2 billion) in 2023.

HAL is best known for its production of military aircraft, such as the Tejas fighter jet and the Dhruv helicopter. In 2023, HAL and Safran formed a joint venture in Bangalore, India, dedicated to co-designing and producing new-generation helicopter engines, primarily for the Indian Ministry of Defence’s future projects.

The company is owned by the government of India. The government aims to use HAL to become a net exporter of military equipment and the company has been targeted with producing $25 billion of domestic military equipment.

Learning From the Biggest Defense Contractors in the World

The global defense industry, led by giants like Northrop Grumman, BAE Systems, and L3Harris Technologies, highlights the critical role of innovation in maintaining leadership, especially in the aviation sector.

These corporations have excelled by creating some of the most advanced weapons systems, demonstrating the significance of collaborations between private sector leaders and governmental defense forces.

A common thread among top firms, such as China North Industries Group (Norinco) and China South Industries Group, is their active role in foreign military sales.

These companies, located in a leading global market, effectively support domestic and international defense requirements.

These companies may not make it onto our list, but they are major players who employ growth strategies similar to those of industry leaders.

The commitment to research and development has allowed these firms to provide cutting-edge technologies to the homeland security and general defense sectors.

Companies such as General Electric Company and Leidos Holdings have expanded their offerings to include support services for the armed forces, emphasizing the industry’s move towards comprehensive defense solutions.

This adaptation extends beyond traditional weaponry to include cyber defense and aerospace engineering, areas where companies like Huntington Ingalls Industries and subsidiary support firms are making significant strides.

The success of American companies and their counterparts around the world resonates with the strategic partnerships they form within the defense ecosystem.

This includes collaboration with the Air Force and other military branches, defense contracts with their home country, and foreign military sales that bolster national security interests.

It is evident that more than half of the success formula lies in innovation, international cooperation, and an unwavering commitment to serve the security needs of nations.

Emerging defense sector corporations can learn from industry leaders like Norinco Group and China Army Industries. Success relies on constant innovation, strategic partnerships, and aligning with security objectives.

These firms exemplify how to meet the changing needs of modern defense and warfare through groundbreaking aviation technology and homeland security contributions.

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