In this piece, we will take a look at military spending by country in 2023 and the 20 largest defense budgets in the world. For more countries, head on over to Military Spending by Country in 2023: 5 Largest Defense Budgets.
Over the course of the past couple of decades, military technology has changed a lot – but stood the same as well. While today’s warfare is opening new domains for militaries, the most important of which is cyber, key technologies have only evolved over time with few new platforms emerging that provide nations with a decisive advantage.
Broadly speaking, there are a handful of key technologies that ensure military superiority in today’s highly advanced technological race. The first of these is of course nuclear, with only eight countries having publicly declared as having nuclear weapons, and the ninth – Israel – widely believed to possess them. However, just because a country possesses nuclear weapons, does not make it equal in terms of power projection among its peers. Out of the nine countries, only four have what is called a nuclear triad – namely the ability to launch nuclear weapons from either the air, land, or sea.
Naturally, America has the deadliest triad options, with advanced fighter jets from Lockheed Martin Corporation (NYSE:LMT) such as the F-16 and the F35 capable of carrying nuclear weapons, and bombers from Northrop Grumman Corporation (NYSE:NOC) such as the B-2A Spirit and The Boeing Company (NYSE:BA)’s massive B-52 Stratofortress bomber responsible for delivering nuclear hell from the skies above. At the same time, America’s Trident missiles, made by Lockheed’s space division is often thought to be the deadliest submarine launched ballistic missiles (SLBMs) in the world, capable of carrying a whopping eight of the deadly W-88 warheads (hydrogen bombs) with each having a yield of 475 kilotons. In comparison, the Russian Layner missile is capable of carrying four 100 kt warheads, and the French M5 is capable of carrying up to ten 110 kT warheads.
At the same time, America is also upgrading its well known Minuteman nuclear missiles. Currently made by Boeing, the latest version of the Minuteman is capable of reaching its target up to 13,000 kilometers away from the launch site, with the final warhead traveling at 23 times the speed of sound, or Mach 23 using the W-87 thermonuclear warhead. If this much death and destruction did not excite you, then the U.S. is planning to phase out the latest Minuteman III missiles and replace them with the Grumman made LGM-35 missiles. On this front, the Pentagon awarded the company a massive $13.3 billion contract in 2020, which would also include work from other companies such as Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD), Honeywell International Inc. (NASDAQ:HON), General Dynamics Corporation (NYSE:GD), and Textron Inc. (NYSE:TXT). On the warhead front, the W-88 for the Trident is due to be replaced by the W-93 by 2024. The W-97 is a rare breed of a nuclear weapon since it is the first new nuclear warhead that is being designed by America since the Cold War era.
While air superiority and dominance are an essential part of the modern day battlefield, especially as the Russian invasion of Ukraine demonstrated that a lack of Russian air superiority enabled Ukraine’s Western allies to deliver crucial equipment to the battlefield, global power projection is best left to aircraft carriers. On this front, especially since it is the biggest defense spender in the world, the U.S. has the most aircraft carriers in the world. Just like nuclear weapons, only a few countries in the world operate aircraft carriers, and America’s 11 carriers are greater than the next five countries combined (just like U.S. defense spending). Additionally, all American carriers use nuclear propulsion, and the U.S. is also the only country apart from France to operate such vehicles. A nuclear propelled carrier has a variety of advantages over traditional vessels – the greatest of which is its unlimited range and ability to travel for decades without having to dock. U.S. aircraft carriers are built primarily by Huntington Ingalls Industries, Inc. (NYSE:HII)’s subsidiary Newport News Shipbuilding.
At the same time, while fighter jets and aircraft carriers command the most awe from civilians, perhaps the deadliest category of weaponized vessel is the silent submarine. Able to evade detection for as long as food and other requirements allow, submarines can be floating underwater anywhere in the world and provide their operator with the lethal advantage of stealth and deadly strike capability as evidenced by the SLBM. On this front as well, being the world’s largest defense spender makes America the leader in having the most nuclear powered submarines in the world, with other operators being Russia, China, the U.K., and France. However, and again, just like the defense spending, America has more nuclear submarines than the next five countries in the list. The U.S. also has the highest number of ballistic attack submarines, with the Ohio-class capable of staying underwater for 60 days.
Northrop Grumman Corporation (NYSE:NOC), one of America’s premier defense contractors due to its critical support for the F-35 program and the U.S. Army’s plethora of different missiles, and the B-21 bomber shared the progress on its Integrated Battle Command System (IBCS) at its fourth quarter of 2022 earnings call. The IBCS is an extension of the F-35’s concept of data integration, and uses cross service, multi sensor data in a single platform to streamline battlefield decision making for the Army. At the call, Grumman’s chief executive officer Ms. Kathy Warden shared:
One example is our IBCS solution. After successful testing in the fourth quarter, IBCS is poised to transition from LRIP to full-rate production in 2023.
IBCS integrate systems that weren’t designed to work together, creating a seamless air and missile defense network and allowing customers to better utilize their defense assets. This capability is needed more than ever to address advanced threats and it’s one where we’ve seen a significant increase in interest across our global customer base with 10 additional countries expressing interest in obtaining this system. We continue to keep our focus on innovating and leveraging our strong position in advanced technology. This includes the development of a new radar for the F-35. This radar is capable of defeating current and projected adversarial air and surface threats and is compatible with variants of the F-35 aircraft. And we capped off a strong year with the historic unveiling of the B-21 Raider.
With these details in mind, let’s take a look at the latest defense spending across countries to find out which countries have the largest defense budgets.
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Our Methodology
To compile our list of global military spending and defense budgets in 2023, we started with data from Global Firepower, a statistics based defense spending tracking website. However, the list was only used as a reference point, with each of the spending estimates manually verified for accuracy. Additionally, while Taiwan is not a country, it is included for completeness since it spends heavily on defense. If you’re interested in defense stocks, be sure to check out 12 Best Defense Stocks To Buy Now.
Military Spending by Country in 2023: 20 Largest Defense Budgets
20. State of Israel
Latest Defense Budget Estimate: $17.8 billion
The State of Israel, or Israel, is a Middle Eastern country. It spends heavily on defense and has one of the largest defense budgets in the world since it is surrounded by hostile and heavily armed countries.
19. Republic of China
Latest Defense Budget Estimate: $19.9 billion
The Republic of China, commonly known as Taiwan, is an Asian disputed region that spends heavily on defense to keep its air force in shape for a potential Chinese invasion.
18. Canada
Latest Defense Budget Estimate: $19.98 billion (1CAD = 0.73USD)
Canada is a North American country which is a developed nation. It has a $2.4 trillion GDP.
17. Federative Republic of Brazil
Latest Defense Budget Estimate: $23 billion
The Federative Republic of Brazil is a South American country that is known for its vibrant aerospace industry as it makes and sells aircraft and related components.
16. United Arab Emirates
Latest Defense Budget Estimate: $23.2 billion
The United Arab Emirates is an Asian island country with a $779 billion GDP.
15. Republic of Türkiye
Latest Defense Budget Estimate: $28.7 billion (1EUR = 1.10 USD)
The Republic of Türkiye is an Asian and European country that is one of the leading players in the global defense industry. It makes its own F-16 planes.
14. Republic of Poland
Latest Defense Budget Estimate: $30 billion
The Republic of Poland is a Central European country with a strategic location due to its Northeastern border with Russia.
13. Italian Republic
Latest Defense Budget Estimate: $30.4 billion
The Italian Republic is a European nation and a key player in the global defense aerospace market.
12. Ukraine
Latest Defense Budget Estimate: $42 billion
Ukraine is one of the largest countries in Europe with a strong defense sector capable of manufacturing aircraft.
11. Republic of Korea
Latest Defense Budget Estimate: $42.1 billion
The Republic of Korea, or South Korea, spends heavily on defense due to its northern neighbor, North Korea.
10. French Republic
Latest Defense Budget Estimate: $50.1 billion (1EUR = 1.10 USD)
The French Republic is one of the most advanced countries in the world in military technology, capable of making fifth generation planes and nuclear submarines, and aircraft carriers.
9. Japan
Latest Defense Budget Estimate: $51 billion (1Yen = 0.0075USD)
Japan is one of the largest economies in the world and has strong defense ties with America.
8. Commonwealth of Australia
Latest Defense Budget Estimate: $52.1 billion
Australia is an island nation that primarily imports its military products.
7. Federal Republic of Germany
Latest Defense Budget Estimate: $55.4 billion
The Federal Republic of Germany, or Germany, is the largest European economy and a global power in modern day politics. It makes weapons such as guns for the Leopold 2 tank. Additionally, the Russian invasion of Ukraine has also injected fresh vigor into the German defense industry.
6. United Kingdom of Great Britain and Northern Ireland
Latest Defense Budget Estimate: $60.5 billion (1GBP = 1.26USD)
The U.K. is another leader in military technology, being one of the first to fly a military jet plane.
Click to continue reading and see Military Spending by Country in 2023: 5 Largest Defense Budgets.
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Disclosure: None. Military Spending by Country in 2023: 20 Largest Defense Budgets is originally published on Insider Monkey.