$4.4 trillion by 2035: Global defense industry breaks records

A Deutsche Bank research report projects global defense spending will reach $4.4 trillion by 2035, up from a record $2.9 trillion in 2025. The revenues of the world's top 100 aerospace and defense companies surpassed the trillion-dollar mark for the first time, with profits surging 46%. The military drone market is expected to triple to around $50 billion.

A new Deutsche Bank research report projects that global defense spending will reach $4.4 trillion by 2035, up from a record $2.9 trillion in 2025. The study, conducted by Markus Mueller, Head of ESG and Global Chief Investment Officer at the bank, found that the revenues of the world's top 100 aerospace and defense companies crossed the trillion-dollar threshold for the first time, with profits surging 46% to $124.4 billion. Mueller explains that conflicts in Ukraine and the Middle East have accelerated defense spending, with an emphasis on air defense, drones, and cyber. The global military drone market is expected to triple to about $50 billion by 2035. The bank believes the growth is not a bubble, pointing to the proposed US defense budget for 2027, which aims for nearly $1.5 trillion, and the extensive use of weaponry against Iran in 2026. The article highlights the "combat proven" advantage of Israeli defense companies and quotes Mueller saying the long-term outlook remains positive, especially for European companies.