Global military spending hits record $2.89 trillion as NATO and China accelerate modernization

Global defense spending reached a new record of $2.887 trillion in 2025, marking a 2.9% increase over the previous year, according to the “Trends in World Military Expenditure, 2025” report released by the Stockholm International Peace Research Institute (SIPRI).

The organization’s annual review noted that defense spending has now risen for 11 consecutive years, climbing by 41% over the past decade. Based on current data, military outlays accounted for 2.5% of global gross domestic product (GDP). Average defense spending worldwide represented 6.9% of total public expenditure, with per capita spending calculated at $352.

Fifteen countries accounted for $2.304 trillion of the total, representing 80% of global expenditure. The top five spenders remained unchanged from 2024: the US, China, Russia, Germany, and India. These five nations collectively spent $1.686 trillion on defense in 2025, representing 58% of the global total.

The US, which has long maintained its position as the world leader in military spending, allocated $954 billion to defense in 2025. While this figure represents 33% of global expenditure, US spending saw a 7.5% decrease compared to 2024. SIPRI analysts attribute this decline to a sharp reduction in foreign aid provided to other countries through supplemental appropriations above the Pentagon’s baseline budget.

Between 2022 and 2025, a total of $127 billion was allocated to the US Department of Defense to support Ukraine; by the end of 2025, $65.1 billion of that amount had been expended. Additionally, a $13 billion supplemental allocation was provided to the Pentagon in 2024 for support to Israel. Although no new supplemental resources were earmarked for either Ukraine or Israel in 2025, it was noted that Israel continued to receive $3.8 billion in aid under a specific mechanism financed through the State Department budget covering the 2019–2028 period.

Washington’s priorities in 2025 included the modernization of nuclear weapons and the development of advanced weaponry. The primary objective of these investments is reportedly to maintain US military superiority in the Western Hemisphere and to counterbalance China in the Asia-Pacific region.

China, ranked second, allocated $336 billion to defense in 2025, accounting for 12% of global spending. Beijing has increased its military expenditure for 31 consecutive years, with spending rising by 7.4% over 2024 and by 62% over the last decade (2016–2025). These investments are directed toward the comprehensive modernization of the People’s Liberation Army by 2035.

As part of this effort, China conducted tests of J-36 and J-50 sixth-generation fighter aircraft in 2025, while the H-20 strategic bomber reached “initial operational capability” (IOC). The SIPRI report clarifies that the term IOC signifies that a system is deemed sufficient to perform missions under actual combat conditions, has reached a minimum authorized number of platforms, and has trained personnel ready for operational deployment. This stage should not be confused with “full operational capability” (FOC), where systems are fully deployed across all scenarios and scales.

Russia maintained its third-place ranking in 2025, spending $190 billion on defense, a 6.6% global share. While Moscow’s military spending increased by 5.9% compared to 2024, this was the slowest growth rate recorded since the start of large-scale hostilities in 2022. Nevertheless, the burden of military spending on the Russian economy remained high, equivalent to 7.5% of GDP and 20% of total government expenditure.

Analysts also highlighted a shift in Russia’s military procurement processes. As the conflict in Ukraine evolved into a “war of attrition,” Russia aimed to limit operational costs by turning toward lower-cost weapon systems, specifically increasing the utilization of unmanned aerial vehicles (UAVs).

SIPRI utilizes approximate estimates for data concerning countries such as Russia, China, Ukraine, and Saudi Arabia. Sergey Chemezov, head of Rostec, criticized SIPRI’s calculation methods regarding defense sector companies, stating that countries like Russia and China do not share such data publicly. Chemezov emphasized that the data in question is classified and asserted that the institute’s figures are produced through unrealistic means.

Germany increased its military spending by 24% in 2025 compared to 2024, reaching $114 billion (a 3.9% global share). SIPRI pointed out that Berlin has recorded double-digit growth in defense spending for three consecutive years. For the first time since 1990, Germany surpassed the threshold of 2% of GDP, reaching 2.3% in 2025. The Berlin administration reportedly plans to increase this ratio to 3.5% by 2029.

India raised its defense spending by 8.9% annually to $92.1 billion in 2025 (a 3.2% global share). Skirmishes with Pakistan in May 2025 involving fighter jets, missiles, and UAVs were cited as a decisive factor in this increase, with New Delhi raising its aviation budget by 18% during this period.

On a regional basis, the share of the Americas in global military spending decreased by 5.5% over the last decade to 37%, while Europe’s share rose by 11% to reach 30%. Total military spending by the 32 NATO member states in 2025 amounted to $1.581 trillion, representing 55% of the global total.

Alliance members reportedly aim to increase military spending to 5% of national GDP by 2035. Under this target, 3.5% is expected to be allocated to core military requirements, with 1.5% dedicated to other defense and security-related expenditures. The SIPRI report noted that clear criteria for core versus ancillary military spending have not yet been established within NATO. This lack of definition is said to reduce transparency and complicate public oversight, with warnings that some members might include non-military expenditures under defense headings to meet political targets. The report cited Italy’s plan to include a bridge project in Sicily within its 2025 military expenditure as an example of this trend.