The world is witnessing an unprecedented surge in defense spending, which has been steadily rising in the last decade. According to a 2024 SIPRI report, global military spending surged in 2023, reaching a historic peak of $2.446 trillion in 2024 (IISS, 2025). This marks a 6.8% increase from 2022-2023—the steepest annual rise since 2009. The largest spenders—the United States, China, and Russia—all increased their military expenditures. In fact, for the first time in 15 years, the SIPRI report marks an increase in all 5 major geographic regions: Africa, Europe, the Middle East, Asia and Oceania, and the Americas.

This surge goes hand-in-hand with an increase in geopolitical tensions, significant technological advancements, and a restructuring of conventional security frameworks. Nan Tian, a senior researcher with SIPRI’s Military Expenditure and Arms Production Programme, says ‘the unprecedented rise in military spending is a direct response to the global deterioration in peace and security […] States are prioritizing military strength, but they risk an action-reaction spiral in the increasingly volatile geopolitical and security landscape.’ Moreover, rather than merely accounting for rising costs and wages, a drop in inflation allowed many states to invest in new resources and capabilities.

The past decade marked a consistent and moderate increase in Asian military budgets. This growth corresponds with the threat of China’s military modernization and increasing force, as well as the advancement of North Korea’s nuclear program. After China, India, South Korea, Japan, and Australia rank highest in Asian defense spending.

The Fiscal Responsibility Act of 2023 limited growth in US defense spending, yet the US still constitutes the biggest military spender worldwide, accounting for over a third of global military expenditure in 2023 (37.5%) and with a 2025 budget of $895 billion. Defense spending in Latin America and the Caribbean surged by 54% from 2014 to 2023, largely driven by military responses to organized crime.

MENA military spending has grown exponentially since 2021, accelerating substantially following the October 7th Massacre conducted by Hamas and other Palestinian terror groups, and Israel’s subsequent multi-front war. Growing instability in MENA brought the percentage of GDP in defense spending to a regional average of 4.3% in 2024, from 4.0% in 2023 (IISS). As of 2023, Iran is the fourth largest military spender in the Middle East, following Saudi Arabia, Israel, and Türkiye. Sub-Saharan Africa is the only region where defense spending declined, by 3.7%. 

Beyond the geopolitical factors necessitating a rise in defense spending, evolving technological needs and advancements are driving growth. Key drivers include the modernization of conventional weapons and increased production capacity, alongside investment in emerging technologies such as AI, cybersecurity, and autonomous weapons. Significant resources are also allocated to R&D in missile defense and nuclear modernization. Moreover, state investment in defense and dual-use technologies blurs the line between civilian and military. 

Experts predict further growth in defense spending in 2025, due to the continuation of long-term conflicts, arms racing, and increasing militarization.

The sharp increase in global military spending since 2023 signals a profound shift in security paradigms, with states prioritizing weapon stockpiling and short-term deterrence. Regulatory frameworks and arms control are outpaced by the influx of new technologies, such as autonomous weapons, cyber, and AI. As nations continue to expand their defense budgets in 2025 and beyond, the challenge lies in balancing military preparedness with long-term stability, ensuring that security investments do not fuel further geopolitical fragmentation or undermine prospects for diplomacy and conflict resolution.