As NATO allies prepare to meet in Ankara next week with defense spending and military production high on the agenda, the alliance's industrial base is attracting renewed attention.
From American fighter jets and missile-defense systems to British warships, French submarines, German tanks and Turkish drones, NATO's military strength depends on an extensive industrial base spread across both sides of the Atlantic.
As European allies seek to expand defense production following the Ukraine war and other security challenges, defense manufacturing and increased military spending have become central pillars of the alliance's long-term strategy.
According to the Stockholm International Peace Research Institute (SIPRI), the world's 100 largest arms-producing and military-services companies generated $679 billion in arms revenue in 2024.
US-based companies accounted for $334 billion, or nearly half of that total, while European companies excluding Russia generated $151 billion, representing about 22%.
NATO allies collectively spent more than $1.4 trillion on defense in 2025, according to the alliance's annual report. European members, including Türkiye, accounted for roughly 40% of total spending, while the United States contributed around 60%.
European defense spending, however, continues to rise rapidly.
The European Union estimates its 27 member states increased defense spending to €381 billion ($434 billion) in 2025, up sharply from €288 billion in 2023, while equipment procurement reached €88 billion in 2024, a 39% increase from the previous year.
Against that backdrop, Anadolu examines the countries that dominate NATO's defense industry and the sectors where they lead production.
The United States remains the alliance's dominant defense-industrial power, producing much of NATO's most advanced military technology.
Companies including Lockheed Martin, RTX, Northrop Grumman, Boeing, General Dynamics, L3Harris Technologies and Huntington Ingalls Industries lead global production of combat aircraft, missile-defense systems, precision-guided weapons, satellites, sensors, nuclear-powered submarines and major naval platforms.
Lockheed Martin remained the world's largest arms producer in 2024, generating $64.65 billion in military revenue, equal to roughly 9.5% of total arms sales recorded by SIPRI's Top 100 companies.
RTX accounted for approximately 6.4% of global Top 100 revenue, followed by Northrop Grumman at 5.6%, General Dynamics at about 5% and Boeing at roughly 4.5%.
The concentration of high-end aerospace, missile and space technologies within US companies continues to make Washington the backbone of NATO's military-industrial base, even as some European allies seek to reduce their dependence on US suppliers.
Among European allies, the United Kingdom maintains the largest defense-industrial base.
Seven UK-based companies featured in SIPRI's Top 100 ranking in 2024, generating a combined $52.2 billion in arms revenue, equal to about 7.7% of the total.
BAE Systems is Europe's largest defense company, recording nearly $33.8 billion in military revenue last year.
Other major British defense firms include Rolls-Royce, Babcock International, QinetiQ and Chemring.
The UK's industry specializes in combat aircraft, naval shipbuilding, submarines, military electronics, armored vehicles and ammunition, making Britain one of NATO's most diversified defense manufacturers.
According to NATO estimates, Britain will spend 2.40% of GDP on defense in 2025, with nearly 36% of that budget allocated to equipment procurement.
France remains one of the few NATO members capable of designing and producing almost every major category of military equipment domestically.
Its leading companies include Dassault Aviation, Thales, Safran, Naval Group and KNDS France/Nexter.
Together, four French companies generated $26.1 billion in arms revenue in 2024, accounting for about 3.8% of SIPRI's Top 100 ranking.
Thales, a leader in defense electronics, generated almost $11.8 billion in military revenue last year.
France's other industrial strengths span fighter aircraft, missiles, naval systems, engines, submarines and armored vehicles.
France is projected to spend 2.07% of GDP on defense in 2025, with equipment accounting for just over 31% of military expenditure.
Türkiye has emerged as one of NATO's fastest-growing defense-industrial players, with its rapid expansion in drones, missiles and armored vehicles making it an increasingly important supplier within the alliance.
According to SIPRI, five Turkish companies featured in the Top 100 ranking in 2024 – the highest number ever for Türkiye – generating a combined $10.1 billion in arms revenue, up 11% from the previous year. Together, they accounted for about 1.5% of total Top 100 arms revenue.
Major defense firms include ASELSAN, Baykar, Turkish Aerospace Industries (TAI), Roketsan, MKE, STM, Otokar and FNSS.
ASELSAN's arms revenue increased 24%, while Baykar generated around 95% of its $1.9 billion revenue from exports, highlighting Türkiye's growing role in the global defense market.
Türkiye’s key strengths include drones, missiles, armored vehicles, naval platforms, ammunition and military electronics.
NATO estimates Türkiye's defense spending will reach 2.33% of GDP in 2025, with equipment accounting for 27% of military expenditure.
Germany has emerged as Europe's leading producer of land systems and ammunition, with demand surging in recent years.
Four Germany-based companies in the SIPRI Top 100 generated $14.9 billion in arms revenue in 2024, equal to about 2.2% of the total.
Major firms include Rheinmetall, Diehl, Hensoldt, ThyssenKrupp Marine Systems and KNDS Germany.
Rheinmetall's military sales rose 47% in 2024, driven largely by demand for armored vehicles and ammunition, while Diehl posted 53% growth amid strong orders for air-defense systems and ammunition.
Germany's defense industry now plays a central role in supplying tanks, infantry fighting vehicles, artillery, air-defense equipment, ammunition, military electronics and submarines across Europe.
NATO estimates Germany's defense spending will reach 2.03% of GDP in 2025.
Italy is another of Europe's leading defense manufacturers, with strengths concentrated in naval construction, aerospace and military electronics.
Leonardo, Fincantieri, Iveco Defence Vehicles and Elettronica form the backbone of the country’s defense industry.
Two Italian companies generated a combined $16.8 billion in arms revenue in 2024, equal to roughly 2.5% of SIPRI's Top 100 total.
Leonardo alone accounted for about $13.8 billion in military revenue, placing it among Europe's largest defense companies.
Italian manufacturers play a key role in producing helicopters, aircraft components, military electronics, naval vessels and missile systems.
NATO estimates Italy's defense spending will reach 2.01% of GDP in 2025, with equipment procurement accounting for nearly 26% of its military budget.
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