Explore a detailed analysis of global defense spending, including trends, top defense budgets, and insights into military expenditures across leading nations. Our comprehensive report examines how defense budgets are shaped by economic, political, and strategic factors.

In 2024, the U.S. spent nearly $1 trillion on its defense budget, equal to 3.4% of GDP. In contrast, NATO members in Europe and Canada spent an average of 2% of GDP on defense.

The U.S. spends as much as the next 12 largest defense budgets combined. Today, just five prime contractors receive 86% of the Pentagon’s spending compared to 51 contractors being allocated 6% of defense spending at the end of the Cold War. Arguably, this concentration has fostered overspending and lower productivity gains.

Ranking in second is China, with a $235 billion defense budget. Yet on a purchasing power parity basis, it stands at $477 billion when adjusting for lower costs in China. Overall, the country’s military modernization includes 600 operational nuclear warheads that are projected to reach 1,000 by 2030 as the country increasingly focuses on reunification with Taiwan.

Russia has the third-largest defense budget globally, at $146 billion.

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