Global Defense Spending Reaches Record $2.72 Trillion Amid Industry Transformation

Dagens Industri reports a record-breaking global military expenditure of $2.72 trillion USD in 2024. This marks the eleventh consecutive year of growth and signifies the most rapid transformation of the defense landscape in decades. The surge is fueled by accelerating technological advancements and evolving geopolitical dynamics, consequently reshaping national security strategies worldwide. Europe is undergoing a significant re-armament, primarily driven by the conflict in Ukraine. NATO member states are substantially increasing their defense outlays, with 23 nations projected to meet the 2% of GDP spending target by 2025. This represents a considerable rise from only six nations in 2021. Germany, Poland, and the United Kingdom are spearheading this military buildup, which is the most extensive since the Cold War. The United States, the world's largest military spender, is also shifting its strategy from legacy systems towards modernization. An increasing share of its defense budget is now dedicated to next-generation capabilities and research and development (R&D). This focus prioritizes efficiency, innovation, and strategic flexibility. This environment is viewed as more than a transient response to geopolitical tensions; it signals a new era in national security characterized by structural changes in military operations and long-term investment opportunities. The defense sector is expected to demonstrate strong innovation potential and sustained secular growth beyond 2030.