Defense budgets are at their most consequential inflection point in decades. World military expenditure reached $2.718 trillion in 2024 — a 9.4% increase and the highest ever recorded. The Pentagon's FY2026 budget request totals $961.6 billion in base funding plus $150 billion under reconciliation. The Pentagon proposes $179 billion for RDT&E — a 27% year-over-year increase. NATO members have committed to 5% of GDP targets by 2035. Europe's rearmament is projected to reach EUR 800 billion by 2030. Understanding where money is flowing — at the program level — is the foundation of every effective business development strategy.
This report provides significant competitor information, analysis, and insight critical to the development and implementation of effective marketing and R&D programs.
Topics Covered
• Global Defense Spending Overview — World Military Expenditure 2020-2025 by Country
• U.S. Defense Budget — FY2026 Request, Congressional Action, and Program-Level Analysis
• Pentagon RDT&E — $179 Billion Allocation by Technology Category and Program
• NATO Defense Expenditure — Member Spending, GDP Targets, and Capability Commitments
• European Rearmament — National Budget Increases, EDF, and Procurement Programs
• Asia-Pacific Defense Budgets — China, India, Japan, South Korea, and Australia
• Middle East Defense Budgets — Saudi Arabia, UAE, and Regional Spending
• Budget Priorities Shift — Platform vs. Technology Investment Trends
• Program-Level Funding Forecast — Key Growth and At-Risk Programs 2026-2031
• Business Development Implications — Where to Compete and Where to Invest
Table of Contents
1. Executive Summary
2. Market Overview
3. Global Defense Spending Overview
4. U.S. Defense Budget
5. Pentagon RDT&E
6. NATO Defense Expenditure
7. European Rearmament
8. Asia-Pacific Defense Budgets
9. Middle East Defense Budgets
10. Budget Priorities Shift
11. Competitive Landscape
12. Regional Market Analysis
13. Strategic Conclusions and Recommendations
14. Appendix
List of Tables
Table 1. Defense Budget Intelligence — Market Size and Forecast 2025-2030
Table 2. Defense Budget Intelligence — Market Size by Segment 2025
Table 3. Defense Budget Intelligence — Market Size by Region 2025-2030
Table 4. Defense Budget Intelligence — Key Demand Drivers and Impact Assessment
Table 5. Defense Budget Intelligence — Technology and Segment Growth Comparison 2025-2030
Table 6. Defense Budget Intelligence — Market Share by Leading Supplier 2025
Table 7. Defense Budget Intelligence — Recent M&A and Partnership Activity 2023-2025
Table 8. Defense Budget Intelligence — North America Market Size and Forecast 2025-2030
Table 9. Defense Budget Intelligence — Europe Market Size and Forecast 2025-2030
Table 10. Defense Budget Intelligence — Asia-Pacific Market Size and Forecast 2025-2030
Table 11. Defense Budget Intelligence — Investment Opportunity Assessment by Segment
Table 12. Defense Budget Intelligence — Key Risks and Mitigation Strategies
Companies Profiled
Airbus
BAE Systems
Boeing
GE Aerospace
General Dynamics
L3Harris Technologies
Leonardo
Lockheed Martin
Northrop Grumman
RTX
