The United States will spend $962 billion on defense in 2025, nearly quadrupling China’s $246 billion and exceeding the combined budgets of the next ten countries. Together, the top 15 military spenders will allocate more than $2 trillion, accounting for around three-quarters of global defense expenditure this year.
This rise in defense budgets reflects a broader shift across all regions as nations respond to continued conflicts and rising geopolitical uncertainty. The war in Ukraine, the crisis in Gaza, and strategic competition in the Indo-Pacific are all contributing to this global rearmament.
The latest data compiled from government sources, budget drafts, and recent press reporting—gathered and presented by Visual Capitalist—highlight a steep increase in military spending. In Europe, budgets are reaching levels unseen in decades, while in Asia and the Middle East, states are expanding their procurement of advanced systems. The figures may shift as final appropriations are made, but the upward trend is firmly established.
United States Maintains Lead With Nearly $1 Trillion Defense Budget
The United States remains by far the world’s largest military spender, with a proposed defense budget of $962 billion for 2025. That total is more than the combined budgets of the next ten countries on the list and includes extensive allocations for personnel, healthcare, and procurement.
Nearly 40% of U.S. spending is directed toward personnel and health-related costs, while strategic focus is shifting toward long-range strike systems, autonomous platforms, and submarine construction. According to the media source, this budget level allows the U.S. to maintain power projection across both the European and Indo-Pacific theaters. Although the current figure is lower than the $1 trillion initially planned during the Trump administration, additional appropriations could raise the final total further.
This massive investment has sparked renewed domestic debate around fiscal sustainability, even as global threats continue to justify expanded capabilities.
Europe Sees Historic Rise in Defense Expenditure
European defense budgets have surged in response to security concerns following Russia’s invasion of Ukraine. Germany’s defense spending is projected to reach $109 billion in 2025, combining its core budget with a dedicated modernization fund. The United Kingdom follows with $81 billion, while France allocates $47 billion.
Poland stands out with a $35 billion defense budget—equivalent to 4% of its GDP—making it the highest GDP share among NATO members. The country has committed to large-scale procurement, including hundreds of main battle tanks and HIMARS rocket launchers.
This regional buildup has pushed Europe past East Asia in total defense spending for the first time since the Cold War. NATO member states have also agreed to increase their defense budgets to 5% of GDP by 2035, which will require significant fiscal adjustments in the coming years.
Middle East and Indo-Pacific Countries Expand Capabilities
In the Middle East, Saudi Arabia and Israel have ramped up procurement to strengthen air-defense and precision-strike systems. Saudi Arabia is spending $78 billion, while Israel’s budget stands at $37 billion for 2025. These increases reflect growing instability in the region and the need to reinforce national deterrence.
Across the Indo-Pacific, China’s military budget has grown to $246 billion, marking a 7.2% increase that mirrors its economic growth rate. Japan is allocating $55 billion, and Australia $34 billion, with both nations focusing on long-range strike systems and submarines as part of efforts to counter China’s maritime influence.
India, with a defense budget of $79 billion, is the fifth-largest global spender. One-third of its capital investment is earmarked for domestic defense manufacturing, supporting its “Make in India” initiative.
