Global Military Spending Surges Nearly 3% In 2025 As Europe And Asia Drive Major Defence Buildup

Global military spending surges nearly 3% in 2025 as Europe and Asia drive major defence buildup Global military spending increased by almost 3% in 2025, reaching a record level as countries across Europe and Asia significantly expanded their defence budgets, according to a new report released by a respected arms watchdog group. The report, published by the Stockholm International Peace Research Institute (SIPRI), shows that worldwide military expenditure rose to about $2.89 trillion in 2025, marking the 11th consecutive year of growth. The 2.9% increase was largely driven by sharp rises in defence spending in Europe and the Asia-Pacific region, even as spending declined in the United States.

According to the findings, Europe recorded a 14% increase in military expenditure, reaching approximately $864 billion, as nations accelerated rearmament efforts amid ongoing geopolitical tensions and security concerns. In Asia and Oceania, military spending rose by 8.1% to around $681 billion, reflecting continued military modernisation efforts, particularly among major regional powers and US allies. Together, these two regions accounted for the largest share of the global increase, underscoring a shift in defence priorities toward regional security challenges and strategic competition. The report highlights that the top three military spenders the United States, China, and Russia accounted for more than half of global defence expenditure, reinforcing their dominance in global military capability. Analysts say the continued rise reflects heightened geopolitical tensions, ongoing conflicts, and long-term military modernisation programmes across multiple regions. SIPRI researchers noted that while the 2025 growth rate was lower than the sharp increases seen in 2024, the overall trend remains upward, driven by sustained security concerns and policy shifts in major economies. Experts link the sustained increase in defence spending to a combination of factors, including the war in Ukraine, tensions in the Indo-Pacific, and broader uncertainty in global security alliances. The report warns that many governments are prioritising military investment at the expense of other budget areas, potentially reshaping long-term economic and social priorities.
With global military expenditure now at historic highs, analysts say the trend is likely to continue into the coming years as nations respond to evolving security threats and intensifying geopolitical competition.