Defense Spending Surges into a New Era with Global Investment Implications

VanEck’s August 2025 whitepaper analyzes how geopolitical tensions and NATO’s revised targets are driving a structural increase in global defense spending.

• Global defense budgets reached USD 2.7 tn in 2024, with Europe posting the sharpest growth (+17%), though industrial capacity remains constrained.

• NATO’s new 2035 goal of 5% of GDP on defense (3.5% core, 1.5% security infrastructure) could push spending above USD 4 tn annually.

• U.S. defense firms currently outpace European peers, but EU initiatives such as the SAFE fund aim to rebuild domestic capacity and reduce reliance on imports.

How can investors balance opportunity and risk in this rapidly expanding, policy-driven sector? Dive into the full report for strategic insights.