Israel's on the list: these 15 Largest defense budgets in the world

Global military expenditures continue to shape the balance of power, reflecting geopolitical tensions and strategic priorities among major nations. In 2024, the United States allocated nearly $1 trillion to defense, representing 3.4% of its GDP—a figure that surpasses the combined defense budgets of multiple nations.

Meanwhile, NATO members in Europe and Canada spent an average of 2% of their GDP on defense. While NATO’s overall spending has declined since the end of the Cold War, military investments by Russia and China have surged—with Russia’s defense spending increasing by 227% since 2000, and China’s soaring by 566% over the same period.

Based on data from the International Institute of Strategic Studies, this article examines the 15 largest defense budgets worldwide, analyzing where nations are directing their military investments and how spending trends are evolving.

U.S. Military Spending Overshadows the World

The United States continues to dominate global military spending, outspending the next 12 largest defense budgets combined.

Here’s a breakdown of the top 15 defense budgets in 2024:

1. United States – Nearly $1 trillion (3.4% of GDP)

2. China – $235 billion (adjusted to $477 billion in purchasing power)

3. Russia – $146 billion (6% of GDP, adjusted to $461 billion in real purchasing power)

4. Germany – $86.0 billion

5. United Kingdom – $81.1 billion

6. India – $74.4 billion

7. Saudi Arabia – $71.1 billion

8. France – $64.0 billion

9. Japan** – $53.0 billion

10. South Korea – $43.9 billion

11. Australia – $36.4 billion

12. Italy – $35.2 billion

13. Brazil – $34.5 billion

14. Israel – **$33.7 billion

15. Poland – **$28.4 billion

Trends in Global Military Spending

1. The U.S. Defense Industry Consolidation

Unlike previous decades, where a broad pool of defense contractors competed for Pentagon contracts, today just five major defense firms receive nearly 86% of total U.S. military contracts. By contrast, at the end of the Cold War, 51 different contractors collectively received only 6% of defense spending. This consolidation has sparked concerns over overspending and reduced competition, potentially affecting innovation and efficiency in military procurement.

2. China’s Military Expansion

China ranks second in overall defense spending, but when adjusted for purchasing power parity, its real military budget stands at $477 billion: This underscores China’s accelerated military modernization, which includes a growing nuclear arsenal—currently at 600 operational warheads, with projections to surpass 1,000 by 2030. These developments align with China’s broader geostrategic ambitions, including its focus on Taiwan reunification and regional dominance.

3. Russia’s Rising Defense Budget

With a military budget of $146 billion, Russia allocates 6% of its national income to defense—the highest share since the Cold War. However, due to lower operational costs in Russia, the real purchasing power of its military budget equates to $461 billion.

Despite its medium-sized economy, Russia maintains a nuclear arsenal rivaling that of the United States, with an estimated 5,000 nuclear warheads. This highlights Moscow’s ongoing prioritization of strategic deterrence, particularly in response to NATO’s military presence in Eastern Europe.

The Future of Military Spending

As geopolitical tensions continue to escalate, military budgets remain a key indicator of national priorities. The U.S. defense budget still dwarfs its global competitors, but China, Russia, and India are steadily increasing their investments—reshaping the balance of power in global security.

With a continued emphasis on military modernization, nuclear deterrence, and advanced defense technologies, global defense spending is expected to remain a central policy focus in the coming years.