In this article, we will be taking a look at the 20 most powerful states in the US. If you want to skip our detailed analysis of the global defense industry, you can go directly to see the
The Global Defense Industry: Powers in Motion
The global defense industry is experiencing significant growth driven by ongoing geopolitical tensions. According to new data on global military spending published by the Stockholm International Peace Research Institute (SIPRI), total global military expenditure reached $2.443 trillion in 2023, marking a 6.8% increase in real terms from the previous year. This rise represents the steepest year-on-year increase since 2009, driven primarily by escalating tensions and conflicts around the world. The ten largest military spenders, including the US, China, and Russia, all raised their defense budgets.
Notably, Russia’s military spending surged by 24% to an estimated $109 billion in 2023, reflecting a 57% increase since 2014. In 2023, Ukraine’s military spending was 59% of Russia’s military spending. Ukraine also received at least $35 billion in military aid from various countries, including $25.4 billion from the US. When combined with Ukraine’s own spending, this amounts to around 91% of Russia’s military expenditure.
Military expenditure in the Middle East rose by 9% to reach $200 billion in 2023, marking the highest annual growth rate in the region over the past decade. This increase was largely driven by Israel, which saw its military spending grow by 24% to reach $27.5 billion, following its large-scale offensive in Gaza after the October attack by Hamas. Iran also ranked as the fourth largest military spender in the Middle East, with an expenditure of $10.3 billion in 2023. Diego Lopes da Silva, a senior researcher with the Stockholm International Peace Research Institute (SIPRI), noted that the surge in military spending reflects the rapidly changing dynamics in the region, from improving diplomatic relations to fears of a broader conflict.
The United States remains the world’s largest military spender. In 2023, the US raised its military budget by 2.3%, bringing total spending to $916 billion. Meanwhile, China, the second-largest military spender, allocated approximately $296 billion to its defense efforts, reflecting a 6% increase from the previous year.
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Growing Budgets: A Win for Defense Contractors
The increase in military spending signals a growing demand for military equipment, new weapons systems, advanced technologies, and modernization efforts. This trend can lead to increased revenues and growth for companies in the defense sector, as governments seek to enhance their military capabilities in response to global security challenges.
Lockheed Martin Corporation (NYSE:LMT) is one of the largest companies in the defense and technologies industry. In April,…