U.S. military spending/defense budget for 2022 was 876.94 billion US dollars, a 8.77% increase from 2021.

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<li>U.S. military spending/defense budget for 2021 was <strong>806.23 billion US dollars</strong>, a <strong>3.58% increase</strong> from 2020.</li>
<li>U.S. military spending/defense budget for 2020 was <strong>778.40 billion US dollars</strong>, a <strong>6% increase</strong> from 2019.</li>
<li>U.S. military spending/defense budget for 2019 was <strong>734.34 billion US dollars</strong>, a <strong>7.6% increase</strong> from 2018.</li>
</ul>Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

In 2023, the United States spent around 916.02 billion U.S. dollars on its military. U.S. military spending has been increasing in current dollar terms since 2016. Spending increased dramatically in 2022 after the Russian invasion of Ukraine. After the first year of the war, the U.S. had contributed more than 40 billion euros worth of military aid to Ukraine. What military spending entails Military spending in the United States is the part of the national outlays of the Department of Defense. While the department has over two trillion dollars in budgetary resources, its outlays - money actually paid out - are significantly lower. This budget is designated for the four branches of the United States military, and is used for everything from salaries, trainings, development of new military technologies, and new aircraft and weaponry. The high cost of U.S. spending The United States is well known for spending more on its military than any other country. In 2023, it was estimated that per capita defense spending amounted to 2,220 U.S. dollars. While this figure is extremely high, many Americans may find it worthwhile, as a majority believe the United States to be the number one military power in the world.

The United States led the ranking of the countries with the highest military spending in 2023, with 916 billion U.S. dollars dedicated to the military. That constituted over 40 percent of the total military spending worldwide that year, which amounted to 2.4 trillion U.S. dollars. This amounted to 3.5 percent of the U.S. gross domestic product (GDP), placing the U.S. lower in the ranking of military expenditure as a percentage of GDP than for instance Saudi Arabia, Israel, Algeria, and Russia. China was the second largest military spender with an estimated 296 billion U.S. dollars spent, with Russia following in third. Defense budgetAccording to the U.S. Congressional Budget Office, the outlays for defense will rise to 1.1 trillion U.S. dollars by 2033. The largest parts of the budget are dedicated to the Departments of the Navy and the Air Force. The budget for the U.S. Air Force for 2024 was nearly 260 billion U.S. dollars.Global military spendingThe value of military spending globally has grown steadily in the past years and reached 2.44 trillion U.S. dollars in 2023. Reasons for this are the outbreak of the Russia-Ukraine war in 2022, the war in Gaza, as well as increasing tensions in the South China Sea. North America is by far the leading region worldwide in terms of expenditure on the military.

Graph and download economic data for Federal Government: National Defense Consumption Expenditures and Gross Investment (FDEFX) from Q1 1947 to Q1 2025 about defense, investment, gross, federal, consumption expenditures, consumption, government, GDP, and USA.

Military expenditure (% of GDP) in United States was reported at 3.3618 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. United States - Military expenditure (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Graph and download economic data for Government current expenditures: Federal: National defense (G160461A027NBEA) from 1959 to 2023 about defense, expenditures, federal, government, GDP, and USA.

This graph shows the defense expenditures of the United States per capita from 1995 to 2024. In 2024, it is estimated that around 2,239 U.S. dollars per capita were spent on military causes by the United States. A ranking of countries with the highest military expenditures can be accessed here.

Military Expenditure in the United States increased to 997309 USD Million in 2024 from 916014.70 USD Million in 2023. United States Military Expenditure - values, historical data, forecasts and news - updated on July of 2025.

United States US: Military Expenditure: % of GDP data was reported at 3.149 % in 2017. This records a decrease from the previous number of 3.222 % for 2016. United States US: Military Expenditure: % of GDP data is updated yearly, averaging 4.864 % from Sep 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 9.063 % in 1967 and a record low of 2.908 % in 1999. United States US: Military Expenditure: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

Defense spending in the United States is predicted to increase every year until 2034. Defense outlays in the United States amounted to 891 billion U.S. dollars in 2023. The forecast predicts an increase in defense outlays up to 1.07 trillion U.S. dollars in 2034.

World military spending/defense budget for 2023 was 2.387 trillion US dollars, a 8.52% increase from 2022.

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<li>World military spending/defense budget for 2022 was <strong>2.199 trillion US dollars</strong>, a <strong>6.41% increase</strong> from 2021.</li>
<li>World military spending/defense budget for 2021 was <strong>2.067 trillion US dollars</strong>, a <strong>6.81% increase</strong> from 2020.</li>
<li>World military spending/defense budget for 2020 was <strong>1.935 trillion US dollars</strong>, a <strong>4.2% increase</strong> from 2019.</li>
</ul>Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

Historical dataset showing U.S. military spending/defense budget by year from 1960 to 2023.

United States US: Military Expenditure as % of General Government Expenditure data was reported at 8.807 % in 2017. This records a decrease from the previous number of 9.042 % for 2016. United States US: Military Expenditure as % of General Government Expenditure data is updated yearly, averaging 11.141 % from Sep 2001 (Median) to 2017, with 17 observations. The data reached an all-time high of 11.769 % in 2011 and a record low of 8.807 % in 2017. United States US: Military Expenditure as % of General Government Expenditure data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

The statistic represents the U.S. defense outlays from 2000 to 2023 with an additional forecast from 2024 to 2034, as a percentage of the gross domestic product. Defense outlays amounted to 746 billion U.S. dollars in 2022, which was about three percent of the U.S. GDP. The forecast predicts an increase in defense outlays up to 1.1 trillion U.S. dollars by 2033, which would be about 2.8 percent of U.S. GDP.

Graph and download economic data for Shares of gross domestic product: Government consumption expenditures and gross investment: Federal: National defense (A824RE1Q156NBEA) from Q1 1947 to Q1 2025 about Shares of GDP, defense, investment, gross, federal, consumption expenditures, consumption, government, GDP, and USA.

Spain military spending/defense budget for 2023 was 23.70 billion US dollars, a 16.71% increase from 2022.

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<li>Spain military spending/defense budget for 2022 was <strong>20.31 billion US dollars</strong>, a <strong>3.9% increase</strong> from 2021.</li>
<li>Spain military spending/defense budget for 2021 was <strong>19.54 billion US dollars</strong>, a <strong>12.12% increase</strong> from 2020.</li>
<li>Spain military spending/defense budget for 2020 was <strong>17.43 billion US dollars</strong>, a <strong>1.41% increase</strong> from 2019.</li>
</ul>Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

As a share of gross domestic product (GDP), Ukraine spent more on its military than any other country in 2023, reaching 37 percent of the country's GDP. The high figure is due to the country being invaded by Russia in February 2022. Algeria and Saudi Arabia followed behind.Leading military spending countriesIn gross terms, the countries with the highest military spending are the United States, China, and Russia. However, these are countries with large populations and GDPs, and smaller countries usually cannot compete alone, regardless of how much they invest. For this reason, they form alliances such as the North Atlantic Treaty Organization (NATO). NATO countries aim to pool two percent of their GDP towards their own militaries and to aid each other in case of war. Regional differencesThe past decade has seen an increase in global military spending. This has not been distributed evenly. That period saw large positive changes in military spending from several Asian countries, including a large increase from China. While this does not reflect the number of active conflicts, it reflects growing tensions in global affairs.

Canada military spending/defense budget for 2023 was 27.22 billion US dollars, a 6.47% increase from 2022.

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<li>Canada military spending/defense budget for 2022 was <strong>25.57 billion US dollars</strong>, a <strong>0.81% increase</strong> from 2021.</li>
<li>Canada military spending/defense budget for 2021 was <strong>25.36 billion US dollars</strong>, a <strong>9.88% increase</strong> from 2020.</li>
<li>Canada military spending/defense budget for 2020 was <strong>23.08 billion US dollars</strong>, a <strong>3.07% increase</strong> from 2019.</li>
</ul>Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

Historical chart and dataset showing North America military spending/defense budget by year from 1960 to 2023.

The U.S. defense market, a significant global player, exhibits robust growth potential. With a 2025 market size of $309.77 billion and a projected Compound Annual Growth Rate (CAGR) of 3.58% from 2025 to 2033, the sector is poised for continued expansion. This growth is fueled by several key drivers, including increasing geopolitical instability, the ongoing modernization of military assets to maintain technological superiority, and significant government investments in advanced defense technologies such as artificial intelligence, cyber warfare capabilities, and unmanned systems. Furthermore, the persistent demand for enhanced cybersecurity measures to protect sensitive data and infrastructure contributes significantly to market growth. While potential restraints such as budgetary constraints and technological obsolescence exist, the strategic importance of defense spending within the U.S. context is expected to mitigate these challenges in the forecast period. The market's segmentation reveals strong performance across production, consumption, import, and export analyses, indicative of a dynamic and interconnected ecosystem. The competitive landscape is dominated by a mix of established defense giants and emerging innovative technology companies. Key players like Lockheed Martin, Boeing, Northrop Grumman, and Raytheon Technologies (RTX Corporation) hold substantial market share, benefiting from their extensive experience and established supply chains. However, smaller, specialized companies focusing on niche areas such as AI and drone technology are increasingly gaining traction. Regional analysis, focusing specifically on the U.S., points to consistent, high demand driven by robust government procurement and the presence of a large, well-established industrial base. Continued technological innovation and adaptation to evolving geopolitical scenarios will be crucial for maintaining the U.S. defense market's competitive edge and its substantial contribution to global defense spending. The market's evolution will be marked by a continuous arms race and technological advancement to counter evolving threats. This comprehensive report provides an in-depth analysis of the U.S. defense market, encompassing a detailed study period from 2019 to 2033, with a base year of 2025 and a forecast period extending to 2033. The report offers invaluable insights into market dynamics, growth drivers, challenges, and future trends, making it an indispensable resource for industry stakeholders, investors, and policymakers alike. Keywords: U.S. defense market, military spending, defense contractors, aerospace and defense, defense technology, weapons systems, national security, market analysis, industry forecast. Key drivers for this market are: Increase in Internet of Things (IoT) and Autonomous Systems, Rise in Demand for Military and Defense Satellite Communication Solutions. Potential restraints include: Cybersecurity Threats to Satellite Communication, Interference in Transmission of Data. Notable trends are: The Air Force Segment to Exhibit the Largest Market Share During the Forecast Period.