Top 10 Defense Spending Countries in 2025: Statistics and Facts Analysis 2024 to 2035

Introduction:

The Global Defense Spending Market encompasses the total expenditure by governments and defense institutions around the world on defense and related activities. Global defense spending has surged to unprecedented levels due to shifting geopolitical tensions and rapid technological advancements. A country's commitment to national security, economic strength, and strategic priorities is reflected in its defense spending. In response to escalating regional conflicts and security challenges, countries globally are investing in modern weapons, cyber defense, and artificial intelligence to enhance their defense capabilities. To maintain operational superiority, nations are restructuring their defense budgets to cover everything from hypersonic weapons and nuclear deterrents to modernizing air forces and strengthening cyberwarfare readiness. Based on current and projected spending, strategic investments, and defense modernization efforts, this article ranks the top 10 defense spenders in the world for 2025.

 

Market Overview and Current Scenario:

According to a research report published by Spherical Insights & Consulting, the Global Defense Spending Market Size is expected to grow from USD 2.7 trillion in 2024 to USD 6.38 trillion by 2035, at a CAGR of 8.13% during the forecast period 2025-2035. A combination of technological development, strategic competitiveness, and geopolitical instability has led to an increase in global defense spending. Countries have been compelled to strengthen their military capabilities as a result of ongoing wars like the Israel-Hamas conflict, the Russia-Ukraine war, and growing tensions in the Indo-Pacific area, especially between China and Taiwan. Increasingly, nations are investing in modernizing their armed forces by swapping out antiquated gear with cutting-edge fighter jets, drones, stealth technology, and missile systems. Significant funding has been allocated to cybersecurity, artificial intelligence (AI), and electronic warfare infrastructure as a result of the rise of cyber and hybrid warfare. 

 

Global Military Spending hit USD 2718 billion in 2024, the highest annual growth since at least the end of the Cold War and a 9.4% real increase from 2023. All parts of the world saw increases in military spending, but Europe and the Middle East saw the fastest growth.  Additionally, several countries are encouraging local military industry through programs like the U.S. military Production Act and India's "Make in India," which boosts procurement and research and development expenditures. Finally, inflation and growing operating expenses have contributed to the higher trend in military spending worldwide.

 

Defense Spending Market Size & Statistics

The market for defense Spending was estimated to be worth USD 2.7 trillion in 2024.

The market is going to expand at a CAGR of 8.13% between 2025 and 2035.

The Global Defense Spending Market is anticipated to reach USD 6.38 trillion by 2035.

North America is expected to grow the fastest during the forecast period.

Asia Pacific is expected to generate the highest demand during the forecast period.

 

Regional growth and demand

 

The Asia-Pacific (APAC) region currently leads the global demand for the defense spending market.

The Asia-Pacific (APAC) region currently leads global demand for the defense spending market, which is fueled by rising defense spending in China, India, and Japan. Concerns about regional security, India's modernization efforts, and China's military growth have all contributed to a sharp rise in defense spending. The rapid advancements in cybersecurity, AI-driven military applications, and space-based defense systems have made this sector the fastest-growing market.

 

Additionally, to enhance military preparedness in the face of escalating geopolitical tensions in the South China Sea and surrounding Taiwan, China's 2025 defense budget has increased by 7.2% to over USD 293 billion. During the announcement at the Two Sessions political event, Premier Li Qiang emphasized the "tough external environment". In the meantime, India has increased its defense expenditure by 9.5% from FY 2025–2026 to Rs 6.81 trillion (USD 78.7 billion). Rs 1.80 trillion of this is set aside for the acquisition and modernization of cutting-edge weaponry. A larger regional trend of increased military spending in response to strategic challenges is reflected in these rising expenditures.

 

North America continues to lead the Global Defense Spending Market, driven by several important reasons that have contributed to North America's continued dominance in the global defense spending industry. With the United States investing large sums of money in defense personnel, innovation, and strategic activities, the region enjoys a steadily high military budget. Given how much money North America spends on preserving its military presence and allies around the world, geopolitical influence is crucial.

 

The world's largest defense expenditure is still the United States. The United States spent USD 997 billion on military spending in 2024, which accounted for 66% of all NATO spending and 37% of all military spending worldwide. The Department of Defense has requested USD 849.8 billion for its Fiscal Year 2025 budget, with a focus on modernizing military capabilities, such as the creation of a space command, AI-based warfare systems, and enhancements to nuclear weapons.  Canada has significantly increased its defense budget. The Department of National Defense's primary estimates for the fiscal year 2024–2025 came to USD 30.58 billion, or roughly 6.8% of the Government of Canada's overall main estimates. The Canadian government has allocated USD 73 billion for military for the next 20 years and USD 8.1 billion over the next five years, beginning in 2024–2025.

 

Top 10 Defence Budget Countries in The World

As countries adjust to growing geopolitical tensions, new technology, and changing security threats, global defense spending has increased. Countries are making significant investments to modernize their armed forces, from cyber capabilities to missile defense and AI-driven warfare. Military spending has emerged as a major national security priority due to record-high budgets and escalating regional rivalry. Based on official data and international defense sources, this blog examines the top 10 defence budget countries in the world.

 

1. United States

In 2025, the United States is expected to spend USD 886 billion on defense, accounting for almost 37% of all military spending worldwide. Developing AI-driven systems and hypersonic missiles, growing the U.S. Space Force, and updating the nuclear triad are among the Pentagon's top goals. Procurement and R&D expenditures are more than USD 145 billion, which reflects rising investments in next-generation warfare. Additionally, the United States intends to strengthen Pacific deterrence in reaction to China's growing power. Assistance to Ukraine and NATO support continue to be important pledges. Significant improvements include AI-powered command systems, cyber capabilities, and missile defense. To sustain its dominance in the world, the United States maintains more than 800 military outposts in more than 70 nations. Additionally, strategic investments focus on military applications of quantum computing, satellite surveillance, and autonomous systems.

 

2. China

China is expected to spend USD 293 billion on defense in 2025, a 7.2% increase from the previous year. The nation is still concentrating on updating the People's Liberation Army (PLA), especially its air force, navy, and strategic missile divisions. J-20 stealth fighters, carrier-based aircraft, and anti-satellite weapons are among the major investments. AI integration and cyberwarfare continue to be top goals. China's "Made in China 2025" campaign encourages domestic defense production to lessen reliance on imported technologies. Amid escalating regional tensions, the PLA Rocket Force is growing, with key deployments concentrating in the Taiwan Strait and South China Sea. Hypersonic glide vehicles, drone swarms, and satellite monitoring are all important parts of China's military strategy. A "severe external environment" has been mentioned by Premier Li Qiang as the rationale behind the increased defense expenditure.

 

3. Russia

Russia's military budget is predicted to soar to almost USD 109 billion in 2025, a staggering increase of 68% above 2021 levels. Moscow has been compelled to prioritize artillery, drone warfare, and missile systems due to the prolonged conflict in Ukraine. With a focus on nuclear deterrent, autonomous systems, and hypersonic missiles like the Kinzhal, the Kremlin has raised defense R&D spending by 33%. Russia's national budget continues to place a high premium on defense despite international sanctions and economic hardship. Additionally, the nation is making investments in its cyberwarfare capabilities, T-14 Armata tanks, and Su-57 stealth fighter. Both the Black Sea Fleet's upgrading and border militarization with NATO-aligned countries are in progress. To counteract the impact of export limitations, Russia has transitioned to a wartime economy model with significant internal output.

 

4. India

India is expected to spend USD 82.5 billion on defense in 2025, a 9.5% increase over the previous fiscal year. There is about Rs 1.80 trillion (USD 21.7 billion) set aside for acquisition and modernization. India is concentrating on developing domestic systems such as the Tejas Mk2 fighter, Agni-V missiles, and INS Vikrant aircraft carrier under the "Make in India" campaign. In light of the current tensions with China and Pakistan, one of the defense priorities is to improve the monitoring infrastructure across the Line of Actual Control (LAC). To protect the Indian Ocean region, India is also strengthening its maritime capabilities. Rafale-M fighter purchases, BrahMos missile exports, and increased UAV capabilities are among the new agreements. While the construction of border roads and tunnels has received significant financing for faster mobilization, the Indian Armed Forces are experiencing a digital makeover.

 

5. Saudi Arabia

Saudi Arabia will continue to be the largest military spender in the Middle East with a projected defense budget of USD 75 billion in 2025. The Kingdom is developing a domestic defense sector under the Vision 2030 project to lessen its need for imports. Eurofighter Typhoons, UAV technology, and Patriot missile systems are important areas of expenditure. Because of the continued tensions with Iran and the instability in Yemen, Saudi Arabia is still focused on protecting its borders. The country also spends money on sophisticated surveillance systems and cybersecurity. Saudi Arabia inked many agreements with Western nations for defense cooperation in 2024 to increase joint production. Producing electronic devices for military usage, drones, and ammunition, the Saudi Arabian Military Industries (SAMI) is an indigenous company that has expanded quickly. Modernizing training and logistics is also prioritized to increase operational effectiveness.

 

6. United Kingdom

In 2025, the UK is projected to spend USD 74.5 billion on defense, with priority including AI systems, cyberwarfare, and nuclear deterrent driving this spending. An important component of its nuclear policy is the Dreadnought submarine program, which will eventually replace the Vanguard-class. Through its Queen Elizabeth-class aircraft carriers, the UK hopes to expand its Indo-Pacific operations and fortify its NATO presence after Brexit. The British Army's Future Soldier initiative, which includes improved armored vehicles, drones, and C4ISR devices, has been given more funding. Additionally, the UK Ministry of Defence is increasing its capacity for cyber command, cooperative exercises with partners, and satellite reconnaissance. The UK is still dedicated to European security as one of Ukraine's strongest allies. Russia and China present strategic difficulties, according to its Integrated Review Refresh 2023.

 

7. Germany

Germany is expected to spend USD 71.2 billion on defense in 2025, which is a big change after Russia invaded Ukraine. The German government promised to modernize its aging military quickly by allocating a special fund of EUR 100 billion. Air defense, digital communication systems, Eurofighter Typhoons, and Leopard 2 tanks are the main areas of investment. Berlin is increasing troop readiness levels and improving NATO cooperation. Germany is now one of Ukraine's top suppliers of military aid, including Leopard tanks and IRIS-T systems. A more robust cyber division and enhanced logistics infrastructure are two aspects of the Bundeswehr's overhaul. NATO military exercises and preparations for deployment along eastern borders have become more intense. To address capability gaps, Parliament has also authorized multi-year purchase plans for long-range artillery weapons and fighter aircraft.

 

8. France

In 2025, France plans to invest USD 66.4 billion to update its defense forces, with a focus on global expeditionary capabilities and nuclear deterrence. The French military keeps growing its presence in NATO operations, Africa, and the Indo-Pacific. Military-grade AI systems, Barracuda-class submarines, and Rafale planes are the main investments. Innovation in space assets, battlefield automation, and cyber defense is encouraged by the Military Programming Law 2024–2030. With R&D being driven by large defense companies like Naval Group and Dassault Aviation, France also places a strong emphasis on independence. Under the Future Combat Air System (FCAS), new partnerships with European allies are underway. France strengthens its special operations capabilities in problematic areas and improves border surveillance as part of its larger security policy.

 

9. Japan

Japan is expected to spend USD 60.2 billion on defense in 2025, the most since World War II. Tokyo is working with the UK and Italy to develop the Next-Generation Fighter (FX) and increase long-range strike capabilities in response to the mounting threats posed by North Korea, China, and regional instability. Electronic warfare equipment, space-based radar, and ballistic missile defense are all funded in the budget. As part of the bilateral security agreement, Japan is also increasing the number of personnel and logistical preparedness of its Self-Defense Forces (JSDF) and modernizing U.S. military installations. Plans to invest in cyber defense and buy Tomahawk cruise missiles were authorized by the administration. By 2027, Japan hopes to raise defense spending to 2% of GDP with the new National Security Strategy. One of the key priorities is still maritime security in the East and South China Seas.

 

10. South Korea

South Korea is expected to spend USD 52.8 billion on defense in 2025, which reflects the country's ongoing upgrading in the face of North Korea's missile threats. The budget places a high priority on bolstering the Korean Air and Missile Defense (KAMD) system, as well as on surveillance satellites and reconnaissance drones with artificial intelligence. Seoul is making investments in new-generation tanks and the domestic KF-21 Boramae fighter jet program to lessen its dependency on American technology. Under the ROK-US alliance, improved interoperability with American forces continues to be a top priority. The deployment of more THAAD systems and enhanced navy capabilities to combat maritime aggression has also been approved by South Korea. Local defense firms like LIG Nex1 and Hanwha Defense are increasing their exports worldwide. To develop a technologically advanced and intelligent military, the nation also plans to invest in tactical data linkages and command automation.

 

About the Spherical Insights & Consulting

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