Global defense spending surged by 8.1% in 2024, reaching an unprecedented $2.3 trillion as governments worldwide respond to a rapidly evolving security landscape. From Eastern Europe to the Indo-Pacific, nations are reassessing their defense priorities in the face of renewed great-power competition and regional instability.
In this climate of growing geopolitical tension, understanding the forces driving military investment is essential for defense professionals, policymakers, and industry leaders alike.
Security Crises Driving Global Investment
Two ongoing conflicts continue to dominate the security environment:
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Russia’s invasion of Ukraine, now entering its third year, has spurred European nations to invest heavily in modernizing their militaries through multi-year programs.
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The Middle East remains volatile following the October 7, 2023, Hamas attacks on Israel and Israel’s subsequent military operations in Gaza and along its northern border.
In Asia, rising tensions between China, the U.S., and neighboring countries over Taiwan and the South China Sea have also accelerated regional military buildup.
Toward a New Security Paradigm
The world is entering an era of economic, diplomatic, and security bifurcation reminiscent of the late Cold War. Countries across Europe, Australia, Japan, Southeast Asia, and Taiwan are adopting new defense strategies and boosting spending to deter potential peer adversaries.
This new era of investment marks a significant shift away from the counterinsurgency focus of the past two decades. Today’s procurement priorities include:
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Artillery systems and ammunition
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Main battle tanks and armored vehicles
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Air defense missiles and drones
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Survivability upgrades to counter advanced missile threats and electronic warfare capabilities
Leading the Charge: Top Defense Spenders
The world’s top 20 defense spenders accounted for 82.4% of global military outlays in 2024—nearly $1.9 trillion. Among the fastest-growing budgets were:
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Poland, responding to the war in Ukraine with accelerated Armed Forces modernization.
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The Netherlands, expanding its military and restoring armored capabilities.
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Israel, increasing defense expenditures in response to its ongoing operations.
Regionally:
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North America, led by the U.S., remains the largest defense spender with significant investments planned in shipbuilding, missile defense, and next-generation systems.
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Asia accounts for 22% of global spending, driven primarily by China.
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Europe now represents 17% of the total, with its share rising steadily as rearmament efforts ramp up.
Preparing for the Decades Ahead
As the decade unfolds, we are entering a period of intense defense investment that will shape military capabilities well into the 2030s. Governments and defense stakeholders must navigate this landscape with informed strategies and agile planning.
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Download our comprehensive white paper, Global Defense Spending Briefer: 2024, for in-depth analysis of regional trends, spending priorities, and strategic implications:
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