According to the Stockholm International Peace Research Institute (SIPRI), global military expenditures reached a new peak of $2.887 trillion in 2025.
While defense spending declines were observed in the United States, investments rose significantly across other regions; Europe saw a 14 percent increase, and Asia and Oceania recorded an 8.1 percent jump. The three largest military spenders-the US, China, and Russia-combined expenditures totaled $1.480 trillion, accounting for 51 percent of the entire global outlay.
This upward trend marks the eleventh consecutive year of rising military spending. Furthermore, the overall global defense burden, measured as a share of Gross Domestic Product (GDP), increased to 2.5 percent, reaching its highest level since 2009.
The decline in US military spending was primarily attributed to the non-approval of new financial military aid for Ukraine in 2025. Nevertheless, the US remains committed to investing heavily in both conventional and nuclear defense capabilities to “secure its dominance in the Western Hemisphere and deter China in the Indo-Pacific”. Adding to the high spending environment, US President Donald Trump plans to significantly increase the defense budget in the upcoming fiscal year.
Regionally, Europe reported a 14 percent increase in military spending, reaching $864 billion. Both Russia and Ukraine increased their military spending for the fourth year of the conflict in Ukraine. Meanwhile, NATO members’ expenditures also saw substantial growth, with Germany leading the increase by 24 percent, bringing its spending to $114 billion. Asia and Oceania experienced the strongest annual growth since 2009, with an 8.1 percent rise. China, in particular, boosted its spending by 7.4 percent, reaching $336 billion.