Key Highlights
- The global arms industry is valued at approximately $500 billion as of 2022
- The United States accounts for about 39% of global arms exports
- The top five arms-exporting countries—USA, Russia, China, France, and Germany—comprise around 75% of global arms exports
- The global defense budget reached approximately $2.1 trillion in 2023
- The military aircraft sector is projected to reach $44 billion in revenue by 2025
- The number of active military personnel worldwide is estimated at around 20 million
- The U.S. Department of Defense allocated about $778 billion in the 2023 fiscal year, making it the largest military budget globally
- The global small arms market is expected to reach $14 billion by 2027
- The largest arms manufacturer in the world is Lockheed Martin, with revenues over $63 billion in 2022
- The European defense industry has an estimated annual turnover of €300 billion
- China’s defense budget increased by 7.1% in 2023 to approximately $293 billion
- The global unmanned aerial vehicle (UAV) market is expected to reach $50 billion by 2028
- In 2022, NATO countries’ combined defense expenditure accounted for over 60% of global military spending
With the global arms industry worth a staggering $500 billion and the United States leading the charge, controlling nearly 39% of exports, this sprawling sector not only shapes international security but also fuels a complex web of geopolitical and economic interests worldwide.
Country-Specific Defense Spending and Export Data
- The United States accounts for about 39% of global arms exports
- The top five arms-exporting countries—USA, Russia, China, France, and Germany—comprise around 75% of global arms exports
- The U.S. Department of Defense allocated about $778 billion in the 2023 fiscal year, making it the largest military budget globally
- China’s defense budget increased by 7.1% in 2023 to approximately $293 billion
- In 2022, NATO countries’ combined defense expenditure accounted for over 60% of global military spending
- The conventional arms transfer agreement between the U.S. and Saudi Arabia has been over $60 billion since 2010
- In 2022, the U.S. exported arms to over 100 countries, with the top recipients being Saudi Arabia, South Korea, and Australia
- Australia intends to increase its defense budget to AUD 45 billion by 2025
- India’s defense budget reached $73 billion in 2023, marking a 6% increase from the previous year
- The largest military arms purchase in history was Saudi Arabia’s $110 billion deal with the U.S. in 2010
- The European Union's defense spending accounts for roughly 1.5% of its GDP, with plans to increase
- The United States has exported over $20 billion worth of military equipment to allies in the Middle East in 2022
- Approximately 55% of global arms exports are supplied by the U.S. and Russia combined
Country-Specific Defense Spending and Export Data Interpretation
Defense Market and Industry Value and Size
- The global arms industry is valued at approximately $500 billion as of 2022
- The global defense budget reached approximately $2.1 trillion in 2023
- The military aircraft sector is projected to reach $44 billion in revenue by 2025
- The largest arms manufacturer in the world is Lockheed Martin, with revenues over $63 billion in 2022
- The European defense industry has an estimated annual turnover of €300 billion
- The arms trade fair IDEX in Abu Dhabi attracts over 1,200 defense companies annually
- The global missile market is projected to reach $22 billion by 2030
- The total investment in military R&D globally was about $91 billion in 2022
- The U.S. military's procurement budget for new weapons grew by 8% in 2023, reaching nearly $150 billion
- Advanced weapon systems like hypersonic missiles are increasingly in demand, with the hypersonic missile market expected to grow at a CAGR of 9.2% through 2027
- The global defense electronics market is projected to reach $100 billion by 2025
- Russia’s military-industrial complex is estimated to generate over $30 billion annually
- The global battlefield robotics market is forecasted to reach $23 billion by 2026
- The global defense cyber security market is expected to grow to $17 billion by 2026
- The average cost of a modern fighter jet is around $85 million
- The global tactical military communications market is anticipated to reach $28 billion by 2025
- Italy’s defense industry has an annual turnover of about €19 billion
- The global laser weapon market is expected to grow at a CAGR of 11.8% through 2028, reaching $4.2 billion
- The U.K. defense sector's annual revenue is over £20 billion
- The total number of tank units worldwide is approximately 55,000
- The global defense market for autonomous systems was valued at $8 billion in 2021 and is expected to grow significantly
- The global biological and chemical defense market is projected to reach $7 billion by 2027
- About 70% of global arms exports are used in conflicts in the Middle East and North Africa
- The total amount spent globally on nuclear weapons programs exceeds $100 billion annually
- China’s production of small arms and light weapons exceeds 8 million units annually
- The global anti-drone market is anticipated to reach $2.5 billion by 2029
- Major defense contracts awarded in 2023 include deals worth over $10 billion for missile defense systems
- The size of the global defense electronics market was valued at approximately $52 billion in 2021
- The global military satellite market is projected to reach $15 billion by 2028
Defense Market and Industry Value and Size Interpretation
Industry Value and Size
- The global small arms market is expected to reach $14 billion by 2027
- The global unmanned aerial vehicle (UAV) market is expected to reach $50 billion by 2028
- The global naval shipbuilding market is projected to hit $125 billion by 2027
Industry Value and Size Interpretation
Military Personnel, Procurement, and Capabilities
- The number of active military personnel worldwide is estimated at around 20 million
- The defense industry employs over 1 million people worldwide
Military Personnel, Procurement, and Capabilities Interpretation
Nuclear and Chemical Defense, Cybersecurity, and Special Systems
- The number of countries possessing nuclear weapons remains at nine, with some estimates suggesting modernization efforts for several arsenals
Nuclear and Chemical Defense, Cybersecurity, and Special Systems Interpretation
Sources & References
- Reference 1CHINA-DEFENSEResearch Publication(2024)Visit source
- Reference 2NATOResearch Publication(2024)Visit source
- Reference 3STATISTAResearch Publication(2024)Visit source
- Reference 4LOCKHEEDMARTINResearch Publication(2024)Visit source
- Reference 5FOREIGNPOLICYResearch Publication(2024)Visit source
- Reference 6AIADResearch Publication(2024)Visit source
- Reference 7COMPTROLLERResearch Publication(2024)Visit source
- Reference 8ODDSANDENDSResearch Publication(2024)Visit source
- Reference 9MARKETSResearch Publication(2024)Visit source
- Reference 10RESEARCHANDMARKETSResearch Publication(2024)Visit source
- Reference 11GLOBALFIREPOWERResearch Publication(2024)Visit source
- Reference 12GLOBALSECURITYResearch Publication(2024)Visit source
- Reference 13TIMESOFINDIAResearch Publication(2024)Visit source
- Reference 14BREAKINGDEFENSEResearch Publication(2024)Visit source
- Reference 15ARMSCONTROLResearch Publication(2024)Visit source
- Reference 16GRANDVIEWRESEARCHResearch Publication(2024)Visit source
- Reference 17DEFENSEResearch Publication(2024)Visit source
- Reference 18SIPRIResearch Publication(2024)Visit source
- Reference 19DEFENSENEWSResearch Publication(2024)Visit source
- Reference 20IDEXUAEResearch Publication(2024)Visit source
- Reference 21ECResearch Publication(2024)Visit source
- Reference 22MARKETSANDMARKETSResearch Publication(2024)Visit source
- Reference 23GLOBENEWSWIREResearch Publication(2024)Visit source
- Reference 24EDAResearch Publication(2024)Visit source
- Reference 25MILITARYAEROSPACEResearch Publication(2024)Visit source