According to study report, around 51 companies from various country including Turkey, Brazil, the United States and India produced, sold or received more than 700 components used by ISIS to build improvised explosive devices (IEDs).
ISIS controls large swathes of Iraq and Syria. Both these countries share border with NATO member Turkey. In view of surge of ISIS militants in these countries, Turkey has hiked security to prevent the flow of weapons and insurgents to the hardline Sunni group.
A total of 13 Turkish firms were found to be involved in the supply chain, the most in any one country.
"These findings support growing international awareness that IS forces in Iraq and Syria are very much self-sustaining - acquiring weapons and strategic goods, such as IED components, locally and with ease," said James Bevan, CAR`s executive director.
"The sale of these cheap and readily available parts, some of which are not subject to government export licences, is far less scrutinised and regulated than the transfer of weapons," said the research report.
The study found that Islamic State is able to acquire some components in as a little as a month after their lawful supply to firms in the region, suggestion a lack of oversight in the supply chain.
"Companies having effective accounting systems to establish where the goods went after them would act as a deterrent," Bevan said.