Global Defense Spending in 2024
Key Takeaways
- In 2024, defense spending totaled $2.5 trillion, up from $2.2 trillion in 2023.
- North America, led by the U.S., was the largest spender with $995 billion, followed by Asia’s $534 billion.
- Europe’s $457 billion was over twice as large as Russia-Eurasia’s $184 billion.
Global defense spending has consistently increased over the last decade, driven by numerous ongoing conflicts in the Middle East, Ukraine, and other parts of the world.
In this graphic, the first in a three-part Investing in Defense series, Visual Capitalist has partnered with Global X ETFs to explore the global landscape of defense spending.
World Defense Spending in 2024
Globally, spending rose from $2.2 trillion in 2023 to $2.5 trillion in 2024.
Below is a table that utilizes data from the International Institute for Strategic Studies to break down global spending by region, with North America leading the way by a considerable margin.
| Region | Defense Spending |
|---|---|
| North America | $995B |
| Asia | $534B |
| Europe | $457B |
| Middle-East and North-Africa | $209B |
| Russia-Eurasia | $184B |
| Latin America & The Caribbean | $59B |
| Sub-Saharan Africa | $19B |
Although Canada’s defense budget increased by 10% in 2024 to 1.2% of the nation’s GDP, the majority of North America’s $995 billion spending originated from the United States.
Asia lags behind North America in spending. The region spent $534 billion in 2024, with China contributing the most—$235 billion.
The Role of Defense Technology
While ongoing conflicts have significantly influenced the volume of global defense budgets, the increased role of technology in warfare has also contributed to its growth.
Many nations are now seeking to modernize their militaries by investing more in specialized defense solutions. These include highly specialized hardware such as sensors, cybersecurity solutions, and artificial intelligence chips.
A Doorway for Investors
Defense offers investors unique diversification options. As factors outside regular market cycles often drive spending, defense technology provides a unique diversification pathway.
Defense technology covers a wide range of areas, including big data and artificial intelligence (AI) companies, robotics, fuel systems, and aircraft.
The Global X Defense Technology SHLD ETF seeks to invest in businesses that develop or benefit from defense technology.
In the second part of the Investing in Defense series, we will examine NATO’s allocation to defense technology.