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Global military expenditure surged to a record $2.89 trillion in 2025, marking the 11th consecutive year of growth, according to a new report released by the Stockholm International Peace Research Institute.

The report shows that global military spending rose by 2.9 percent in real terms compared to 2024, although the pace of growth slowed from the previous year. Military expenditure as a share of global GDP increased to 2.5 percent, the highest level recorded since 2009, reflecting rising geopolitical tensions and ongoing conflicts worldwide.

The United States remained the largest military spender despite a 7.5 percent decline to $954 billion in 2025, mainly due to reduced financial assistance to Ukraine. However, analysts expect this decline to be temporary, with projections indicating a potential rise in U.S. defense spending in the coming years.

Europe was the primary driver of global growth, with regional military expenditure increasing by 14 percent to $864 billion. Members of the North Atlantic Treaty Organization significantly boosted defense budgets, with many countries meeting or exceeding the 2 percent GDP benchmark, reflecting heightened security concerns across the region.

In the Middle East, spending remained relatively stable at approximately $218 billion despite persistent regional tensions. Meanwhile, in Asia and Oceania, countries such as Japan recorded notable increases, reflecting evolving defense strategies and shifting security priorities.

SIPRI analysts indicate that global military spending is likely to continue rising through 2026 and beyond, driven by strategic competition, ongoing conflicts, and long-term defense commitments among major economies.