Global military spending has reached unprecedented levels in 2025, continuing a concerning upward trajectory that began nearly a decade ago. Defense budgets worldwide reflect growing geopolitical tensions, ongoing conflicts, and strategic competition between major powers. The global security landscape is increasingly characterized by military escalation and arms races as countries prioritize military strength in response to perceived threats and regional instabilities. This comprehensive analysis examines current trends in defense spending, explores the strategic motivations of top military spenders, and evaluates the implications for international security and global stability in the coming years.
The Current State of Global Military Spending
Military spending worldwide has experienced a dramatic surge since 2023, when it reached $2.443 trillion—an increase of 6.8% from the previous year2. This represented the steepest year-on-year increase since 2009 and pushed global military expenditure to the highest level ever recorded by the Stockholm International Peace Research Institute (SIPRI)2. The upward trajectory has continued into 2025, with several major powers significantly expanding their defense budgets.
The global military burden—defined as military spending as a percentage of global gross domestic product (GDP)—increased to 2.3% in 20232. This metric reveals how countries are increasingly prioritizing defense over other sectors of government spending. Average military expenditure as a share of government spending rose by 0.4 percentage points to 6.9% in 2023, indicating a shift in fiscal priorities toward military capabilities2.
The primary drivers behind increased military spending include:
The ongoing conflict in Ukraine, which has prompted massive military expenditures not only by the direct participants but also by NATO countries and others concerned about regional security
Escalating geopolitical tensions in Asia and Oceania, particularly related to territorial disputes and China’s growing military assertiveness
Persistent conflicts and security challenges in the Middle East
The rapid advancement of military technologies, including artificial intelligence, hypersonic weapons, and cyber capabilities
For the first time since 2009, military expenditure increased in all five geographical regions in 2023, demonstrating the truly global nature of this trend23. This pattern has continued into 2025, with many countries committing to sustained increases in defense spending over the coming years.
Top Military Spenders in 2025
United States Military Spending
The United States maintains its position as the world’s largest military spender in 2025, with a defense budget of $895 billion1. Despite a slight decrease from the $916 billion spent in 20232, this figure still represents approximately 37% of global military spending2. The US military budget continues to dwarf that of its closest competitor, China, by a factor of more than three.
US military spending has increased by approximately 9.9% since 20142, reflecting Washington’s determination to maintain military supremacy amid growing challenges from strategic competitors. Particularly notable is the continued prioritization of research, development, test and evaluation (RDT&E) spending, which experienced a 9.4% real-terms increase in 2023 compared to 20222. This focus on technological advancement aligns with the US strategic shift away from counterinsurgency operations toward developing advanced weapon systems for potential conflicts with major powers like China and Russia.
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The US military spending as a percentage of GDP stands at approximately 3.4% as of 20232, exceeding the 2% target set for NATO members. Despite fluctuations in overall budget allocations, the United States remains committed to maintaining technological superiority and global military presence.
China’s Military Spending
China ranks as the second-largest military spender globally in 2025, with a defense budget of $266.85 billion1. This represents a significant decrease from the estimated $296 billion spent in 20232, though the accuracy of official Chinese figures is frequently questioned by international analysts. China’s military spending has grown dramatically over the past decade, with a 60% increase between 2014 and 20232.
The Chinese government has maintained relative consistency in its military spending as a percentage of GDP, with figures hovering around 1.7%2. This relatively modest proportion compared to other major powers indicates significant room for potential increases should Beijing choose to allocate more resources to defense.
China’s military modernization program continues to focus on naval expansion, advanced missile systems, space capabilities, and information warfare. The country has achieved the largest increase in military capability among all nations, growing by over 71% in the past decade and surpassing Russia’s rank in 20214. This rapid buildup has raised concerns among neighboring countries and the United States about China’s long-term strategic intentions in the Indo-Pacific region.
Russia Military Spending
Russia occupies the third position among global military spenders in 2025, with a defense budget of $126 billion1. This represents an increase from the estimated $109 billion spent in 20232, continuing a strong upward trend that has seen Russian military spending grow by 57% since 2014—the year Russia annexed Crimea23.
Russian military spending as a percentage of GDP reached 5.9% in 20232, one of the highest proportions among major powers. Defense expenditure accounted for approximately 16% of total government spending in Russia3, indicating the high priority that Moscow assigns to military strength despite ongoing economic challenges.
The sustained high levels of Russian military spending reflect Moscow’s determination to maintain its status as a major military power and support its ongoing operations in Ukraine and elsewhere. Despite international sanctions and economic difficulties, Russia continues to invest heavily in modernizing its nuclear arsenal, developing hypersonic missiles, and enhancing its conventional forces.
Other Major Military Powers
India ranks fourth globally in military spending for 2025, with a defense budget of $75 billion1. This represents a continuation of India’s military buildup, which saw a 44% increase in defense spending between 2014 and 20232. With a military burden of 2.4% of GDP in 20232, India is steadily enhancing its capabilities in response to security challenges from neighboring countries, particularly China and Pakistan.
Saudi Arabia follows closely behind India with a 2025 defense budget of $74.76 billion1. Despite a decrease of 18% between 2014 and 20232, Saudi Arabia maintains one of the highest military burdens globally at approximately 7.1% of GDP2. This substantial investment reflects the kingdom’s focus on regional security amid tensions with Iran and ongoing conflicts in Yemen and elsewhere in the Middle East.
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The United Kingdom ($71.5 billion), Japan ($57 billion), Australia ($55.7 billion), and France ($55 billion) round out the top ten military spenders in 20251. Ukraine has emerged as a significant military spender, ranking eighth globally in 2023 with expenditures of $64.8 billion—a 51% increase from the previous year23. Ukraine’s military spending represented an extraordinary 37% of its GDP and 58% of total government spending in 202323, reflecting the existential nature of its defense needs.
NATO and Collective Defense Spending
NATO members’ combined military spending reached $1.341 trillion in 2023, accounting for 55% of global military expenditure2. This represented an increase of 5.2% from 2022 and 19% from 20142. The alliance has continued to expand its collective military capability, with most members increasing their defense budgets in response to the Ukraine conflict and perceived threats from Russia.
In 2023, eleven of the 31 NATO members met or exceeded the alliance’s target of spending 2% of GDP on defense—an increase from seven members in 20142. NATO subsequently revised this target to “at least” 2% of GDP, signaling expectations for continued growth in military spending among alliance members2.
The share of European members in total NATO spending reached 28% in 2023, the highest level recorded in the decade 2014-20232. This reflects Europe’s growing commitment to security self-reliance, even as the United States remains the dominant contributor to NATO’s overall military capability.
Regional Trends in Military Spending
Europe
European military spending has seen dramatic increases in recent years, primarily driven by concerns about Russian aggression following the invasion of Ukraine. Germany, for instance, increased its defense budget by 9.0% in 2023 to reach $66.8 billion2. This commitment to enhanced military capability represents a significant shift in German security policy, marking a departure from decades of military restraint.
Eastern European countries have shown some of the most substantial proportional increases in military spending. Poland, Romania, and the Baltic states have all significantly raised their defense budgets, with some committing to spending well above the 2% of GDP NATO target. This trend reflects the acute security concerns of countries geographically proximate to Russia.
Asia and Oceania
Military spending in Asia and Oceania continues to rise substantially, driven by several factors including China’s military expansion, North Korea’s nuclear program, and territorial disputes in the South China Sea and elsewhere. South Korea has maintained high levels of defense spending, reaching $47.9 billion in 20232, while Japan increased its military budget by 11% to $50.2 billion2.
Australia has similarly committed to enhanced military capability, with defense spending of $32.3 billion in 20232. This reflects Canberra’s concerns about regional security dynamics and its determination to play a more significant role in maintaining stability in the Indo-Pacific.
India’s continued military buildup positions it as the dominant military power in South Asia, though Pakistan also maintains significant defense expenditure relative to the size of its economy. The India-China border disputes and ongoing tensions between India and Pakistan ensure that military spending in the region will remain high for the foreseeable future.
Middle East
The Middle East continues to be one of the most militarized regions globally, with several countries maintaining exceptionally high levels of military spending as a proportion of GDP. Saudi Arabia leads the region with a military burden of approximately 7.1% of GDP2, reflecting its ongoing security concerns related to Iran and regional conflicts.
Israel, not featured among the top ten global spenders but nonetheless significant, maintains one of the world’s highest military burdens as a percentage of GDP. Iran, despite facing economic challenges due to international sanctions, continues to invest heavily in its military capabilities, particularly in missile technology and proxy forces throughout the region.
The persistent conflicts in Syria, Yemen, and elsewhere in the region, combined with strategic competition between regional powers, ensure that military spending in the Middle East will remain at elevated levels.
Impact of Conflicts on Military Spending
The Ukraine Conflict
The conflict in Ukraine has had a profound impact on global military spending patterns. Ukraine itself increased its military expenditure by 51% in 2023 to reach $64.8 billion, representing an extraordinary 37% of its GDP23. This dramatic rise reflects the existential nature of the threat faced by Ukraine and has been supported by substantial military aid from Western countries.
Russia’s military spending has similarly increased dramatically, growing by 24% in 2023 to reach an estimated $109 billion23. The conflict has also catalyzed increased military expenditure throughout Europe, with most European countries raising their defense budgets in response to perceived Russian aggression.
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The long-term impact of the Ukraine conflict on global military spending patterns cannot be overstated. Beyond the immediate participants, the conflict has fundamentally altered security perceptions across Europe and beyond, likely ensuring elevated levels of defense expenditure for years to come.
Indo-Pacific Tensions
Rising tensions in the Indo-Pacific region, particularly related to China’s territorial claims and growing military assertiveness, have driven substantial increases in military spending among regional powers. Japan, South Korea, Australia, and various Southeast Asian nations have all committed to enhanced military capabilities in response to perceived security challenges.
The United States has similarly oriented its defense planning increasingly toward the Indo-Pacific, with significant resources allocated to naval and air capabilities suited for potential conflicts in the region. The emergence of new security arrangements such as AUKUS (Australia, United Kingdom, United States) and the strengthening of existing alliances reflect growing concerns about regional security dynamics.
Economic and Technological Dimensions of Military Spending
Military Spending and Economic Impact
Military spending as a percentage of GDP varies significantly among major powers, from Russia’s 5.9% and Saudi Arabia’s 7.1% to China’s relatively modest 1.7%2. These differences reflect varying strategic priorities, economic capacities, and security environments.
The economic impact of increased military spending is complex and multifaceted. While defense expenditure can stimulate technological innovation and create employment in certain sectors, it also diverts resources from potentially more productive civilian applications. The opportunity cost of military spending is particularly significant for developing countries with limited resources.
Technological Innovation and Military Spending
A key trend in contemporary military spending is the increasing focus on technological innovation rather than personnel numbers. The United States, for instance, has prioritized research, development, test and evaluation (RDT&E) spending over other categories since around 20142. This reflects a strategic shift toward developing advanced weapon systems capable of maintaining technological superiority over potential adversaries.
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Areas of particular focus include artificial intelligence, autonomous systems, hypersonic weapons, space capabilities, and cyber warfare. These technologies have the potential to fundamentally alter military balances and create new domains of strategic competition.
The data from the Global Peace Index shows that while the average level of country militarization has been declining, total military spending and overall military capability, especially related to technology, have been increasing4. This apparent contradiction reflects a long-term trend toward more technologically sophisticated but potentially smaller military forces.
Future Projections and Security Implications
Projected Trends in Military Spending
Global military spending is projected to continue its upward trajectory in the coming years, driven by ongoing conflicts, strategic competition between major powers, and technological arms races. The United States, China, and Russia are likely to maintain their positions as the top three military spenders, though the gap between the US and China may narrow over time.
Regional powers such as India, Saudi Arabia, and various European nations are similarly expected to sustain high levels of defense expenditure in response to perceived security challenges. The collective military spending of NATO members will likely continue to grow as more countries work to meet the alliance’s 2% of GDP target.
Implications for Global Security
The sustained increase in global military spending has significant implications for international security and stability. While enhanced military capabilities may serve as a deterrent in certain contexts, they can also fuel security dilemmas wherein defensive measures by one state are perceived as threatening by others, potentially triggering arms races and increasing the risk of conflict.
The proliferation of advanced military technologies, particularly in domains such as cyber, space, and autonomous systems, creates new vulnerabilities and potential flashpoints. The absence of robust international norms and agreements governing these technologies heightens the risk of misunderstanding and miscalculation.
The concentration of military capability among a relatively small number of states—the top five military spenders accounted for 61% of global military expenditure in 20232—raises questions about global power dynamics and the effectiveness of multilateral security institutions in managing international conflicts.
Conclusion
Military spending has reached historic highs in 2025, reflecting a world characterized by increasing strategic competition, persistent conflicts, and technological arms races. The United States maintains its position as the dominant military power, but China’s continued growth in military capability represents a significant long-term challenge to American primacy. Russia, despite economic limitations, remains committed to military power as a core element of its national strategy.
The global increase in military spending spans all regions and encompasses countries at various levels of economic development. This widespread militarization trend is driven by a complex interplay of factors, including the Ukraine conflict, Indo-Pacific tensions, Middle Eastern instability, and the emergence of new military technologies.
The economic, technological, and security implications of this sustained increase in military expenditure are profound and far-reaching. While enhanced military capabilities may provide security for individual states, the collective impact of global militarization raises serious concerns about international stability and the prospects for peaceful resolution of conflicts.
As the global arms race accelerates, the challenge for policymakers and international institutions will be to develop mechanisms for managing security competition, reducing the risk of conflict, and eventually reversing the trend toward ever-higher levels of military spending. Whether such efforts will succeed in an increasingly fractured and competitive international environment remains one of the central questions for global security in the coming decades.
