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KNOWLEDGE CENTER/GEOPOLITICS/ARTICLE #17
GEOPOLITICS ENCYCLOPEDIA

The Global Arms Trade: Power, Profit, and Strategic Influence

3 MIN READARTICLE 17 OF 52UPDATED FEBRUARY 14, 2026

The international arms trade is a multi-hundred-billion-dollar enterprise that serves as both a tool of foreign policy and a mirror of geopolitical alignments. The patterns of who sells weapons to whom reveal alliance structures, strategic priorities, and shifting power dynamics more clearly than almost any other metric.

The United States dominates the global arms market, accounting for approximately 40% of all major weapons transfers. American systems like the F-35 fighter, Patriot air defense system, and M1 Abrams tank are operated by dozens of allies and partners. Arms sales serve as the connective tissue of America's alliance network, creating interoperability, training dependencies, and long-term maintenance relationships that bind buyers to Washington's strategic orbit.

Russia, historically the second-largest arms exporter, has seen its market share decline due to sanctions, supply chain disruptions from the Ukraine war, and the diversion of production to domestic needs. This has created opportunities for other suppliers. France has won major contracts for Rafale fighters in India, Indonesia, and the Gulf states. South Korea has emerged as a surprising powerhouse, securing contracts for K2 tanks in Poland and KF-21 fighters in multiple markets. Israel's defense exports, particularly in air defense, UAVs, and electronic warfare, punch far above the country's size.

China's arms exports remain focused on developing nations, offering systems at lower price points with fewer political conditions than Western suppliers. The global shift toward indigenous defense production, driven by supply chain vulnerabilities exposed during the Ukraine war, is reshaping the market. Nations like Turkiye, Brazil, and India are investing heavily in domestic capabilities, reducing dependence on imports while creating new export opportunities.