The world is rearming at its fastest pace since the Cold War, driven by ongoing wars in Ukraine and Gaza and rising military tensions from Europe to Asia, a new report has revealed.

Global military spending surged 9.4% year-over-year to $2.718 trillion in 2024, the highest ever recorded by the Stockholm International Peace Research Institute (SIPRI) and the steepest annual increase since 1988, just before the fall of the Berlin Wall.

SIPRI warned that this upward trend is set to continue, as many nations have pledged to boost defense budgets further. The United States remains the top spender by a wide margin, allocating nearly $1 trillion, with major investments in F-35 stealth jets ($61.1 billion), new Navy ships ($48.1 billion), nuclear arsenal modernization ($37.7 billion), and missile defense ($29.8 billion).

The US allocated $48.4 billion in aid to Ukraine, amounting to nearly three-quarters of Kiev’s own $64.8 billion defense budget, according to the report.

US, China lead in global military spending

China ranked second in total military spending with an estimated $314 billion, just under one-third of the US figure.

SIPRI reported that China’s 7% increase in 2024 marked the 30th consecutive year of rising defense spending for the People’s Liberation Army, the longest continuous streak recorded in the institute’s database.

While the report didn’t detail China’s spending by category, it noted that in 2024, Beijing introduced several advanced capabilities, including new stealth fighter jets and unmanned aerial and underwater vehicles, and significantly expanded its nuclear arsenal.

Combined, the US and China were responsible for nearly half of all global military spending in 2024. The largest year-over-year increases, however, came from sides directly involved in—or preparing for—regional conflicts.

The Israeli occupation, which launched a war on Gaza in 2023, recorded a sharp 65% rise in military spending in 2024. 

Russia's military spending surged by at least 38% in 2024—likely more when including off-budget sources—prompting European NATO countries to significantly boost their defense budgets in response to the war in Ukraine, Russian aggression, and pressure from Donald Trump for greater burden-sharing, though experts warn that spending increases alone may not guarantee military self-reliance.

NATO frightened by Trump's new Ukraine approach

The war in Ukraine has prompted NATO countries to significantly raise their military spending, reflecting a broader shift toward greater self-reliance within the alliance. This trend aligns with President Donald Trump’s renewed push for European members to take on more responsibility for their defense, as he criticizes what he sees as a long-standing overdependence on US support.

Germany, with the world’s fourth-largest defense budget, upped its spending by 28%. Romania (43%), the Netherlands (35%), Sweden (34%), the Czech Republic (32%), Poland (31%), Denmark (20%), Norway (17%), Finland (16%), Turkey (12%) and Greece (11%), were the other NATO members among the top 40 defense spenders worldwide who showed double-digit increases in 2024.

US allies at the heart of arms races

This sustained buildup has triggered a regional arms race, with several US allies significantly expanding their own military budgets, often in coordination with or under pressure from Washington.

The US has played a central role in shaping the region’s military posture, both through direct security partnerships and by encouraging allied nations to assume more defense responsibilities amid growing tensions with China.

Japan, a key US ally, for instance, saw a 21% rise in its military spending in 2024, the largest increase since 1952, bringing its defense expenditure to 1.4% of GDP, the highest proportion dedicated to the military since 1958.

The Philippines, bolstered by joint drills and military cooperation with the US, raised its defense spending by 19%.

South Korea, another critical US partner, maintained the region’s highest military burden at 2.6% of GDP, despite only a 1.4% increase in 2024. Taiwan, under growing US support in the face of rising Chinese influence, raised its military spending by 1.8% last year and by 48% since 2015.

India, also aligning more closely with US strategic goals in Asia, saw a modest 1.6% increase in 2024 but has grown its defense budget by 42% over the past decade, a trend researchers view with concern.