Global Military Spending Reaches Record $2.72 Trillion in 2024

Defense budget supercycle driven by next-gen strike and defense capabilities

Published on Feb. 25, 2026

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Global military spending reached a record $2.72 trillion in 2024, marking the steepest annual increase since the Cold War. The Department of Defense has requested $3.0 billion for hypersonic weapons programs in its FY2026 budget, signaling sustained investment in next-generation strike and defense capabilities. Companies positioned across this accelerating defense technology landscape include VisionWave Holdings, Kratos Defense & Security Solutions, Ondas Holdings, Parsons, and Elbit Systems.

Why it matters

The surge in defense spending reflects growing global security concerns and the race to develop advanced military technologies like hypersonic weapons. This 'defense budget supercycle' has major implications for the defense industry, national security, and the broader geopolitical landscape.

The details

The CSIS estimates that a comprehensive homeland missile defense system could require between $252 billion and $3.6 trillion over two decades. The Aerospace Industries Association has called for stable investment in next-generation missile warning satellites and resilient space architectures as 2026 priorities. VisionWave Holdings has executed a definitive agreement to acquire a 51% controlling stake in C.M. Composite Materials, a certified aerospace manufacturer in Israel that produces structural composite assemblies for missile defense systems. VisionWave believes integrating its QSpeed computational acceleration technology into C.M.'s certified manufacturing environment could optimize production and reduce bottlenecks.

  • Global military spending reached a record $2.72 trillion in 2024.
  • The Department of Defense has requested $3.0 billion for hypersonic weapons programs in its FY2026 budget.

The players

VisionWave Holdings

A company that is building both the computational acceleration layer and the regulated manufacturing foundation for the defense industry.

Kratos Defense & Security Solutions

A company that was awarded a contract through the Department of War's Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles.

Ondas Holdings

A company that secured a strategic defense contract with a governmental customer in the Asia-Pacific region through its subsidiary Airobotics, supporting deployment of autonomous unmanned aerial capabilities for national security missions.

Parsons

A company that was awarded a $125 million single-award Task Order contract over five years to support the U.S. Army Combat Capabilities Development Command Army Research Laboratory, High Performance Computing Modernization Program, and Defense Research and Engineering Network.

Elbit Systems

A company that reported record quarterly revenues of $1.92 billion for the third quarter of 2025, reflecting 12% year-over-year growth driven by accelerating demand across European and Israeli defense markets.

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What they’re saying

“With the previously announced $10 million QSpeed™ Statement of Work and now entering into a definitive agreement to acquire majority control of a certified aerospace composite manufacturer embedded in active missile defense programs, VisionWave is building both the computational acceleration layer and the regulated manufacturing foundation.”

— Douglas Davis, Interim CEO & Executive Chairman of VisionWave

“The Kratos team is committed to advancing materials for hypersonics through testing and evaluation. Our focus is on accelerating the development of systems for our warfighter. This begins with increased throughput of our nation's testing infrastructure, and by making investments in new infrastructure, like the recently awarded Project Helios.”

— Ben Dempsey, Kratos SRE Vice President of Programs

“Governments in the region are responding to a rapidly evolving threat environment, particularly for borders, critical infrastructure, and sensitive national assets. Our autonomous platforms are purpose built for these challenges, delivering persistent protection, rapid response, and operational resilience in complex and contested environments.”

— Eric Brock, Chairman and CEO of Ondas Holdings

“Parsons is an agile, rapid developer of transformative solutions that strengthen the nation's security and deliver mission-ready capabilities at the speed of relevance. This award underscores Parsons' long-standing dedication to innovation and excellence in support of the U.S. Army. We are excited to leverage our experience and expertise to further empower the ARL and contribute to impactful operations, AI/ML research, and cybersecurity capabilities.”

— Dr. David Tyler, Vice President, C5ISR Solutions for Parsons

“These results reflect the significant contracts the Company has secured across Europe and from customers worldwide, who continue to choose Elbit Systems' advanced systems amid the ongoing global conflicts and increasing defense budgets. Our tested and proven systems contribute to substantial operational successes and achievements, and they strengthen the national security of many countries, including those in Europe, which has become a major market for the Company.”

— Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The surge in global defense spending highlights the intensifying geopolitical tensions and the race to develop advanced military technologies. This 'defense budget supercycle' presents both opportunities and challenges for the defense industry, as companies seek to capitalize on increased investment while navigating complex regulatory and technological landscapes.