Global military expenditure surged to a record $2.887 trillion in 2025, extending more than a decade of continuous growth and signaling a world increasingly shaped by insecurity and geopolitical tension. The figures, released by the Stockholm International Peace Research Institute, show that despite a slight slowdown in the pace of increase, countries across Europe, Asia and beyond are accelerating military investments in response to ongoing wars, strategic competition and shifting alliances.
According to SIPRI, global military spending rose by 2.9 percent in real terms compared to 2024, marking the eleventh consecutive annual increase. While this represents a sharp deceleration from the 9.7 percent growth recorded the previous year, the moderation is largely attributed to a temporary decline in spending by the United States. Outside the US, military expenditure grew by 9.2 percent, underscoring the breadth and intensity of rearmament efforts worldwide. The global military burden, measured as a share of gross domestic product, climbed to 2.5 percent, its highest level since 2009.
Researchers at SIPRI point to a convergence of crises as the primary driver of this sustained growth. Ongoing conflicts, regional instability and long-term strategic rivalries have pushed governments to prioritize defense spending at levels not seen in years. The report suggests that these pressures are unlikely to ease soon, with many countries already committing to ambitious military spending targets that extend into the latter part of the decade.
The United States remains the world’s largest military spender by a significant margin, although its expenditure fell by 7.5 percent in 2025 to $954 billion. SIPRI attributes this decline primarily to the absence of new military aid packages for Ukraine during the year, in contrast to the substantial support approved between 2022 and 2024. Despite the drop, the US continues to invest heavily in modernizing both its nuclear arsenal and conventional forces, with a strategic focus on maintaining dominance in the Western Hemisphere and countering China’s influence in the Indo-Pacific region.
SIPRI analysts emphasize that the reduction in US spending is likely to be short-lived. Budget allocations approved for 2026 already indicate a sharp increase, potentially pushing military expenditure beyond $1 trillion, with further rises possible in subsequent years. This projected rebound reinforces expectations that global military spending will continue its upward trajectory.
Europe emerged as the main engine of global spending growth in 2025, with total military expenditure on the continent rising by 14 percent to reach $864 billion. SIPRI highlights the ongoing war in Ukraine as a central factor, driving both immediate military needs and long-term rearmament across the region. Russia increased its military spending by 5.9 percent to $190 billion, while Ukraine expanded its budget by 20 percent to $84.1 billion, reflecting the intensity of the conflict entering its fourth year.
Beyond the battlefield, European NATO members have accelerated defense investments at an unprecedented pace. Combined military spending among the alliance’s European members reached $559 billion, with a majority meeting or exceeding the 2 percent of GDP benchmark. Germany recorded a 24 percent increase, becoming the largest military spender in the group, while Spain boosted its budget by 50 percent, crossing the same threshold for the first time in decades.
SIPRI researchers note that this rapid expansion reflects both a push for greater European self-reliance and increasing pressure from the United States for allies to shoulder a larger share of the defense burden. However, the report also raises concerns about transparency, warning that the boundaries between military and broader security-related expenditures may become increasingly blurred as countries strive to meet new targets.
In the Middle East, overall military spending remained relatively stable, rising by just 0.1 percent to an estimated $218 billion. SIPRI data shows that while most countries in the region increased their defense budgets, Israel recorded a 4.9 percent decline following a reduction in the intensity of its conflict in Gaza after a ceasefire agreement early in the year. Nevertheless, Israel’s military spending remains significantly elevated compared to pre-conflict levels.
Other regional trends reflect a complex mix of economic and security factors. Türkiye increased its military expenditure by 7.2 percent, driven in part by ongoing operations in multiple conflict zones. Iran, by contrast, saw its spending decline in real terms for the second consecutive year due to high inflation, even as nominal figures rose. SIPRI cautions that official data may underestimate Iran’s true military expenditure, as off-budget revenues are believed to fund key defense activities.
Asia and Oceania recorded the fastest growth in military spending since 2009, with total expenditure rising by 8.1 percent to $681 billion. China, the second-largest military spender globally, increased its budget by 7.4 percent to $336 billion, marking its 31st consecutive year of growth. SIPRI notes that China’s sustained investment reflects a long-term strategy of military modernization, despite efforts to address corruption within procurement systems.
Across the region, other countries are also ramping up defense spending. Japan’s military budget rose by 9.7 percent, reaching its highest share of GDP since 1958, while Taiwan recorded a 14 percent increase amid heightened military activity around the island. SIPRI analysts highlight that US allies in Asia and Oceania are boosting their military capabilities not only due to regional tensions but also because of growing uncertainty about future US security commitments.
Elsewhere, several countries reported notable increases in military expenditure. India expanded its defense budget by 8.9 percent, maintaining its position among the world’s top spenders, while Pakistan recorded an 11 percent rise. In Africa, total military spending grew by 8.5 percent, with Nigeria posting a particularly sharp increase as it confronts insurgencies and extremist violence. Smaller states are also responding to localized tensions, as seen in Guyana’s 16 percent rise in military spending amid a territorial dispute with Venezuela.
SIPRI’s findings underscore a broader global pattern in which military expansion is no longer limited to a handful of major powers. While the United States, China and Russia together account for more than half of global military expenditure, the trend toward increased defense spending is widespread and accelerating across regions.
The report paints a picture of a world entering a prolonged period of strategic competition, where governments are prioritizing military strength in response to an increasingly uncertain security environment. As conflicts persist and geopolitical rivalries deepen, SIPRI warns that the current trajectory of rising military expenditure is likely to continue into 2026 and beyond, with far-reaching implications for global stability and economic priorities.
