Recent SIPRI Market Study on Defence Sector 2025 - Analysis

The Stockholm International Peace Research Institute (SIPRI) has explored trends in the world’s military expenditure for 2024 and recently released a fact sheet in April 2025. The in-depth study has deep-dived into the defence sector globally and identified a strange pattern of increasing expenditure amid rising international conflicts. The significant surge in fund allocation indicates that cybersecurity for the military and defence sector requires close attention.

Go through the analysis of the SIPRI market study, along with its highlights and takeaways for the defence, military, and government bodies in India and around the world.

Market Study on the Defence Sector by SIPRI

As an independent international institute, SIPRI has delivered various research papers and market studies on defence conflicts, arms, and landscapes. Their recent study focuses on the global trend in military expenditure and allocation of funds for strong defence by various countries.

Key Highlights of the Defence Expenditure Report

• 2024 marks the 10th consecutive year of spending increases worldwide
• Global defence expenditure rose by 9.4%
• The total defence expenditure was $2718 billion

From 2015 to 2024, defence spending has substantially increased by 37%, rising every single year. The world’s per-person defence cost recorded in 2024 is the highest since 1990 ($334).

Global Defence Spending

Reciprocating and reflecting the high geo-political tension and global conflicts, every country turned its focus toward security on all three fronts: army, navy, and air force. The expenditure rightly reflects the untoward scenario.

Top 5 countries that spend the most on Defence

Although all countries have increased their budgets for military security considerably, the spending of these five countries accounts for 60% of the world’s total defence spending.

1. The United States ($997B)
2. China ($314B)
3. Russia ($149B)
4. Germany ($88.5B)
5. India ($86.1B)

The United States and China, the two largest spenders, accounted for almost half of the world’s total expenditure.

India’s Defence Spending

India has increased its spending to $86.1 billion, a 42% rise over the past decade. India has also implemented a policy in place that demonstrates its intention to reduce its reliance on foreign arms imports. It is worth noting that, until 2024, India has been one of the world’s largest arms importers.

• India’s defence spending has increased (at the CAGR of 8.6%)
• The mounting tension in the borders & proactive measures of the nation are the top reasons
• India has moved from 9th largest defence spender to 5th largest in 2024

Why should the defence sector prioritise Quantum Cybersecurity?

As mentioned earlier, there are three established defence forces: army, navy and air force. However, the fourth notable and vulnerable force is Digital.

Digital warfare

Modern warfare is moving from trenches and machines to data breaches and cyberattacks. As the sector is data-sensitive and classified in nature, every piece of information is a potential grenade that could compromise the nation’s digital sovereignty and security.

Mines are set in the fields, while cyber traps are set on the internet and systems.

Quantum computers & their threat

The existing traditional encryption serves as the foundation for all the security systems the defence sector utilises. However, this encryption can be broken by quantum computers in just a few minutes. Some cyber attackers have begun downloading encrypted data with the intention of decrypting it later when they gain access to quantum computers.

Vulnerable applications in the defence sector

Though all digital architectures are susceptible to quantum attacks, we have listed the most vulnerable military applications that use classical encryption:

• Communication Platforms
• Authentication Protocols
• Sensors
• Routers
• VPN
• Command & Control Systems
• Data Centres
• File Transfers
• Drones

QNu’s Quantum Solutions

As a leading provider of quantum-safe solutions worldwide, QNu is committed to safeguarding and strengthening the military cybersecurity landscape, offering both hardware and software solutions against quantum threats.

• QVerse: For end-to-end quantum-safe messaging & collaboration
• QShield: World’s 1^st unified quantum security platform
• Quantum Key Distribution: For unbreakable security keys.
• Quantum Random Number Generator: For generation true randomness for secure authentication.
• QConnect: For future-secure VPN network.

Get started for a quantum-safe future

For governments and the defence sector around the world, it is the right year to move forward in the quantum adoption journey.

• Step 1: Complete the form and receive expert answers.
• Step 2: Book a demo
• Step 3: Define the objectives
• Step 4: Establish the Proof of Concept
• Step 5: Your quantum security journey begins.