In 2025, Poland's defense spending as a share of gross domestic product was **** percent, the highest of all NATO member states, followed by Lithuania at *****percent, and then Latvia at **** percent. It is a target of NATO that every member country should spend at least two percent of their GDP on defense. As of this year, it is estimated that all the alliance's 32 member states would meet this target. The average expenditure on defense expenditure across all NATO member states was **** percent in this year. NATO, Trump, and the War in Ukraine Russia's full-scale invasion of Ukraine in February 2022 shook many European powers out of a creeping complacency that had set in since the end of the Cold War. It led directly to the applications of Sweden and Finland to the alliance in 2022, with the latter joining later that year. The conflict has however also underlined how Europe's security is still underpinned by American military power, with the United States the main contributor of military aid to Ukraine. Furthermore, in overall defense spending, the U.S. spends far more than the rest of NATO combined. The current Trump administration has frequently criticized NATO states that they see as taking advantage of this discrepancy, urging other members to reach and even exceed the two percent threshold. Article 5 triggered in the aftermath of 9/11 While NATO was founded with the aim of deterring the Soviet Union in the Cold War, its central defense clause "Article 5" whereby an attack on one member is considered an attack on all, has only been triggered once; after the 9/11 terrorist attacks on the United States. NATO's involvement in the subsequent War in Afghanistan was a direct result of this, with troops supporting the operation from across the alliance. Although NATO's focus drifted towards counter-insurgency, and the threat from terrorism in this period, its original purpose has become far more important recently.

The average for 2024 based on 30 countries was 51662 U.S. dollars. The highest value was in Luxembourg: 128182 U.S. dollars and the lowest value was in Albania: 18920 U.S. dollars. The indicator is available from 1990 to 2024. Below is a chart for all countries where data are available.

In 2025, NATO countries spent an average of 2.76 percent of their gross domestic product on defense, compared with 2.61 percent in the previous year. Members of the alliance are pledged to spend at least two percent of their GDP on defense a target met by all member states in 2025.

The average for 2024 based on 30 countries was 1810.53 billion U.S. dollars. The highest value was in the USA: 29184.89 billion U.S. dollars and the lowest value was in Montenegro: 8.07 billion U.S. dollars. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

The United States is, by far, the country that has the highest military spending of NATO countries, accounting for over ****billion U.S. dollars of the combined NATO military defence spending of **** trillion dollars. By contrast, the other ** member states of NATO combined spent approximately *** billion dollars on defence, highlighting the key position the U.S. holds in the alliance. The NATO alliance was formed in the aftermath of World War Two, with the aim of deterring Soviet Expansion into Western Europe. NATO at 76 In 2025, having lasted for 76 years, NATO is arguably the world's most successful military alliance. Since its founding in 1949, the alliance expanded from 12 countries to 32, with the two most recent additions (Finland and Sweden) a direct consequence of Russia's invasion of Ukraine. Although to some extent, the invasion gave NATO a clear sense of purpose, the alliance has recently come under strain. During the first and second terms of Donald Trump, the U.S. leader frequently chastised member states who spent a lower share of their GDP on defence. NATO after the Cold War After the fall of the Soviet Union in the early 1990s, the concentration of NATO’s military resources were focused elsewhere. Interventions in Bosnia and Kosovo, followed by the War in Afghanistan, saw a large rise in the defense spending of some NATO countries. In particular, defense spending by the United States rose dramatically between 2001 and 2011, rising from *** billion U.S. dollars to *** billion U.S. dollars. While the mid-2010s saw a noticeable decline in defence spending as a share of GDP, among member states, this trend was reversed due to the worsening security situation in Europe since 2022.

In 2025, Luxembourg was the NATO member state that increased its defense spending the most when compared with the previous year, at ** percent. On average, NATO states increased their defence spending by 7.6 percent, with only two states, Hungary, and Czechia, reducing their defence spending this year.

The average for 2024 based on 30 countries was 1.56 percent. The highest value was in Luxembourg: 32.78 percent and the lowest value was in Montenegro: -22.68 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

The average for 2023 based on 30 countries was 23.38 percent. The highest value was in Norway: 43.21 percent and the lowest value was in Greece: 9.44 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

The average for 2024 based on 9 countries was 64.09 percent. The highest value was in Montenegro: 76.28 percent and the lowest value was in Croatia: 56.98 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

The average for 2023 based on 30 countries was 60.4 percent. The highest value was in Luxembourg: 217.77 percent and the lowest value was in the USA: 11.01 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

As a share of gross domestic product (GDP), Ukraine spent more on its military than any other country in 2024, reaching 35 percent of the country's GDP. The high figure is due to the country being invaded by Russia in February 2022. Israel, that is fighting Hamas in the Gaza war, and Algeria 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.

In 2025, Norway spent an estimated ***** U.S. dollars per capita on defense, compared with the NATO average of ******* per capita.

The combined defense expenditure for members of NATO was approximately 1.59 trillion U.S. dollars in 2025, the highest NATO members have collectively spent on defense during the provided time period.

As of 2025,the combined forces of NATO had approximately 3.44 million active military personnel, compared with 1.32 million active military personnel in the Russian military. The collective military capabilities of the 32 countries that make up NATO outnumber Russia in terms of aircraft, at 22,377 to 4,957, and in naval power, with 1,143 military ships, to 419. In terms of ground combat vehicles, NATO had an estimated 11,495 main battle tanks, to Russia's 5,750. The combined nuclear arsenal of the United States, United Kingdom, and France amounted to 5,559 nuclear warheads, compared with Russia's 5,580. NATO military spending In 2024, the combined military expenditure of NATO states amounted to approximately 1.47 trillion U.S. dollars, with the United States responsible for the majority of this spending, as the U.S. military budget amounted to 967.7 billion dollars that year. The current U.S. President, Donald Trump has frequently taken aim at other NATO allies for not spending as much on defense as America. NATO member states are expected to spend at least two percent of their GDP on defense, although the U.S. has recently pushed for an even higher target. As of 2024, the U.S. spent around 3.38 percent of its GDP on defense, the third-highest in the alliance, with Estonia just ahead on 3.43 percent, and Poland spending the highest share at 4.12 percent. US aid to Ukraine The pause in aid to Ukraine from the United States at the start of March 2025 marks a significant policy change from Ukraine's most powerful ally. Throughout the War in Ukraine, military aid from America has been crucial to the Ukrainian cause. In Trump's first term in office, America sent a high number of anti-tank Javelins, with this aid scaling up to more advanced equipment after Russia's full-scale invasion in 2022. The donation of around 40 HIMARs rocket-artillery system, for example, has proven to be one of Ukraine's most effective offensive weapons against Russia. Defensive systems such as advanced Patriot air defense units have also helped protect Ukraine from aerial assaults. Although European countries have also provided significant aid, it is unclear if they will be able to fill the hole left by America should the pause in aid goes on indefinitely.

The average for 2023 based on 29 countries was 3.02 percent. The highest value was in Albania: 16.22 percent and the lowest value was in Luxembourg: 0.21 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

***************************** are expected to allocate most of their GDP to defense in 2025. According to NATO data, Poland is the member that allocates the largest share of all alliance members in terms of GDP to defense. Following *******is Latvia, whose defense spending will amount to **** percent of GDP, *** percentage points more than the NATO guideline.

The average for 2015 based on 30 countries was 11.49 GDP per kg of oil equivalent. The highest value was in Denmark: 17.17 GDP per kg of oil equivalent and the lowest value was in Iceland: 2.91 GDP per kg of oil equivalent. The indicator is available from 1990 to 2023. Below is a chart for all countries where data are available.

The Europe Cruise Missile Market size was valued at USD 1.07 Billion in 2024 and is projected to reach USD 2.29 Billion by 2032, growing at a CAGR of 10% from 2026 to 2032.

Key Market Drivers

Rising Defense Budgets and NATO Commitments: Increase in defense spending by European NATO members, driven by escalating security challenges and the evolving geopolitical landscape. In response to rising threats, countries are prioritizing the modernization of their defense systems, including the procurement of advanced cruise missiles, to enhance deterrence capabilities and ensure national security. According to NATO's official figures, European allies' defense expenditure grew by 32% between 2020-2023, reaching USD 391.35 Billion in 2023. Seven additional European NATO members met the 2% GDP defense spending target in 2023, up from only three in 2020.

The Europe Defense Aircraft Aviation Fuel Market size was valued at USD 4.82 Billion in 2024 and is projected to reach USD 8.67 Billion by 2032, growing at a CAGR of 7.6% from 2026 to 2032.Key Market Drivers:Rising Defense Budgets and NATO Commitments: European nations are significantly increasing military spending in response to evolving security threats, directly impacting defense aviation fuel requirements as air forces expand operations and capabilities. According to NATO's official figures, European defense expenditure increased by 19.7% between 2021-2024, reaching approximately USD 380 billion in 2024. The number of European NATO members meeting the 2% GDP defense spending target rose to 18 countries in 2023, compared to just 7 in 2020Modernization of Military Aircraft Fleets: European nations are investing heavily in next-generation military aircraft, driving increased demand for specialized aviation fuels. The European Defence Fund allocated USD 8.9 billion (2021-2027) specifically for collaborative defense capability development, with approximately 30% directed toward aviation projects France, Germany, and Spain's Future Combat Air System (FCAS) program has secured USD 3.7 billion in initial funding for prototype development

Denmark donated the most significant percentage of its 2021 gross domestic product (GDP) to help Ukraine over the period between January 2022, and June 2025. Denmark contributed 2.89 percent of its GDP in bilateral aid, followed by Estonia with 2.8 percent of GDP. Besides the Nordic and Baltic countries, the Netherlands donated the largest share of GDP. Western countries sent aid to Ukraine in view of the Russian invasion that began in February 2022. Who donated the most to Ukraine? In absolute terms, the largest bilateral aid allocations to Ukraine were made by the United States, at over 114 billion euros as of June 2025. European Union (EU) institutions, such as the European Commission and the European Council, allocated the second-largest amount of assistance, at almost 63.2 billion euros. The United Kingdom (UK) was the fourth-leading source of bilateral aid. EU aid to Ukraine The EU has supported Ukraine with over 69 billion euros in financial assistance as of January 2022. Of them, the largest share of aid has been provided as additional loans from the European Investment Bank (EIB) and the European Bank of Reconstruction and Development (EBRD). Among EU members, Germany allocated the largest amount of bilateral aid to Ukraine from January 24, 2022, at around 22 billion euros, while Estonia allocated the largest share of GDP.