Global defence expenditure topped a record $2.8 trillion, with NATO accounting for more than half of this and Europe representing $864 billion, a 14% rise on last year.

European defence spending drove continued growth in global military expenditure in 2025, as total expenditure reached a record $2.887 trillion, marking the 11th consecutive annual increase, according to data published by the Stockholm International Peace Research Institute (SIPRI). The rise was largely sustained by sharp increases across Europe that offset a decline in United States spending. 

Global military expenditure grew by 2.9% year-on-year in real terms, a slower pace than the 9.7% increase recorded in 2024, but still extending a decade-long upward trend that has seen spending rise by 41% since 2016. 

Europe recorded the largest regional increase, with spending rising by 14% to $864 billion in 2025, reflecting continued responses to Russia’s war in Ukraine and broader security concerns across the continent. The region’s expanding budgets were a key factor in maintaining global growth despite reduced U.S. expenditure during the year. 

Several European countries posted significant increases. Germany’s military spending rose by 24% to $114 billion, making it the fourth-largest spender globally, while Poland increased expenditure by 23% and Spain by 50%, among the largest percentage rises worldwide. Italy also recorded a 20% increase. 

Spending by NATO members totalled $1.58 trillion in 2025, accounting for 55% of global expenditure. European NATO members contributed $559 billion, with 23 of the alliance’s 32 members meeting or exceeding the 2% of GDP benchmark, underscoring a sustained shift toward higher defence investment across the bloc. 

The continued expansion of European defence budgets points to sustained demand for military capability development and procurement, with multiple countries accelerating investment following several years of elevated threat perceptions. The scale and consistency of recent increases underpin a longer-term shift in the continent’s re-armament.

Globally, the United States remained the largest military spender despite a 7.5% decline to $954 billion, while China and Russia increased their expenditure by 7.4% and 5.9% respectively. Growth in Europe and Asia was sufficient to offset the U.S. decrease and maintain the overall upward trajectory in global defence spending.