Global defense spend could rise another 6% year-over-year to over $3 trillion in 2026 — extending a decade-long stretch of growth. Spending is projected to grow at a 6% annualized rate, reaching $4.4 trillion by 2030.1
Future-proofing advanced military systems is a top priority for governments, requiring specialized software and hardware—including sensors, AI chips, and high-performance processing and networking solutions.
Defense tech spans sectors such as industrials, cybersecurity, AI, and drone systems. Unlike civilian markets, defense revenues are driven by strategic military priorities rather than economic cycles.
1Global X ETFs forecast, with information derived from: Stockholm International Peace Research Institute (SIPRI), Apr 2026.
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