The 100 largest arms makers had arms revenues of $679 billion in 2024, and the volume of major arms transfers rose 9.2% between 2016 to 2020 and 2021 to 2025.
Why this market is moving now
- European and North American allies agreed in June 2025 to invest 5% of GDP a year on defence and security by 2035.
- European spending rose 14% to $864 billion in 2025, the main driver of the global increase.
- The United States supplied 42% of international arms transfers in 2021 to 2025, up from 36%.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| World military spending reached $2,887 billion in 2025, up 2.9% in real terms on 2024. | 2,887 USD billion | 2025 | |
| The United States, China and Russia together spent $1,480 billion on their militaries in 2025, 51% of the world total. | 1,480 USD billion | 2025 | |
| US military spending was $954 billion in 2025, 7.5% lower than in 2024, and still the largest of any country. | 954 USD billion | 2025 | |
| China, the second largest military spender, raised spending 7.4% to $336 billion in 2025. | 336 USD billion | 2025 | |
| A 14% rise in Europe, to $864 billion, was the main driver of the global increase in military spending in 2025. | 864 USD billion | 2025 | |
| The 100 largest arms makers had combined arms revenues of $679 billion in 2024, up 5.9%. | 679 USD billion | 2024 | |
| The 39 US companies in the top 100 arms makers had combined arms revenues of $334 billion in 2024, up 3.8%. | 334 USD billion | 2024 | |
| The volume of major arms transferred between countries rose 9.2% between 2016 to 2020 and 2021 to 2025. | 9.2 % growth | 2025 | |
| The United States supplied 42% of all international arms transfers in 2021 to 2025, up from 36% in 2016 to 2020. | 42 % of world arms exports | 2025 | |
| Allies in the transatlantic alliance agreed in June 2025 to invest 5% of GDP a year on defence and security by 2035, with at least 3.5% on core defence. | 5 % of GDP by 2035 | 2035 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
Lockheed Martin
US arms maker that raised its arms revenues in 2024, within the $334 billion earned by US firms in the top 100.
Northrop Grumman
US arms maker that raised its arms revenues in 2024, within the $334 billion earned by US firms in the top 100.
General Dynamics
US arms maker that raised its arms revenues in 2024, within the $334 billion earned by US firms in the top 100.
Czechoslovak Group
Czech arms maker with the sharpest percentage rise in arms revenues of any top 100 company in 2024.
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
How every figure was built
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Frequently asked questions
How big is the global defense market?
World military spending reached $2,887 billion in 2025, up 2.9% in real terms on 2024.
Which countries spend the most on defense?
The United States spent $954 billion in 2025 and China $336 billion. With Russia, the top three spent $1,480 billion, 51% of the world total.
Who are the largest defense companies?
The 100 largest arms makers earned $679 billion from arms in 2024. The 39 US firms among them earned $334 billion, including Lockheed Martin, Northrop Grumman and General Dynamics.
Which countries export the most arms?
The United States supplied 42% of all international arms transfers in 2021 to 2025, up from 36% in 2016 to 2020.
What is the NATO 5% defense spending target?
Allies agreed in June 2025 to invest 5% of GDP a year on core defence and defence-related spending by 2035, with at least 3.5% of GDP on core defence.
Is defense spending still growing?
Yes. World spending rose 2.9% in real terms in 2025, led by a 14% rise in Europe to $864 billion. Arms transfers rose 9.2% between 2016 to 2020 and 2021 to 2025.
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