NEW DELHI: Global military expenditure soared to an all-time high of $2.7 trillion in 2024, a 9.4% rise from the previous year and the tenth straight annual increase, according to the SIPRI (Stockholm International Peace Research Institute) Yearbook 2025 released on June 16. Defence spending now accounts for 2.5% of global GDP, rising to 4.4% in conflict-hit states.
Europe saw the sharpest rise at 17%, driven by the Russia–Ukraine war. Romania led with a 43% hike, followed by Poland (31%) and Germany (28%). Russia’s military spending rose 38%, while Ukraine’s rose 2.9%. Japan, amid regional tensions, recorded its highest defence budget growth since 1952.
The US remained the world’s top military spender, allocating $997 billion—over three times China’s $314 billion, which accounted for half of Asia and Oceania’s defence spending.
The global arms industry also expanded. The top 100 arms companies earned $632 billion in 2023, with 73 firms reporting growth and 39 achieving double-digit revenue increases. U.S. firms dominated with 41 companies earning $317 billion, led by Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics.
Lockheed Martin alone earned over $60 billion. Chinese defence giants AVIC, NORINCO, and CETC also ranked in the top ten. The sector is rapidly shifting toward next-gen technologies with a surge in mergers and acquisitions in UAVs, electronic warfare, and AI.