Mapped: How Much Does NATO Spend of Defense Technology?
Key Takeaways
- In 2024, NATO defense technology spending would total $290 billion if the Wales pledge were met, 30% higher than 2019.
- The U.S. would lead with $193.6 billion, accounting for 66% of total spending.
- Europe’s big four (Germany, U.K., France, Italy) would together account for $53 billion.
Defense technology is increasingly important in modern militaries. Specialized and advanced equipment, including sensors, radar, networking, and even artificial intelligence, is now commonplace on today’s battlefields.
In this graphic, the second in the Investing in Defense series, we partnered with Global X ETFs to examine NATO’s potential defense technology spending.
The 2014 Wales Summit
Among the many things discussed and agreed upon at NATO’s 2014 Summit in Newport, Wales, the allied nations agreed to spend at least 20% of their budgets on developing and procuring new technologies.
By examining each nation’s 2024 defense budget, we can estimate the amount each NATO nation spends on defense tech.
If NATO nations had exactly met their Wales Summit pledge, the bloc would have spent around $290 billion on defense technology in 2024–30% more than in 2019.
Here’s how this breaks down by nation:
| Nation | Defense Tech Spend |
|---|---|
 U.S. |
$193.6B |
 Germany |
$17.2B |
 United Kingdom |
$16.2B |
 France |
$12.8B |
 Italy |
$7.0B |
 Poland |
$5.6B |
 Canada |
$5.4B |
 Netherlands |
$4.7B |
 Spain |
$3.9B |
 Türkiye |
$2.9B |
 Sweden |
$2.5B |
 Norway |
$2.0B |
 Romania |
$1.8B |
 Belgium |
$1.7B |
 Greece |
$1.6B |
 Finland |
$1.4B |
 Czechia |
$1.3B |
 Hungary |
$1.1B |
 Denmark |
$1.1B |
 Portugal |
$0.6B |
 Slovakia |
$0.6B |
 Lithuania |
$0.5B |
 Bulgaria |
$0.5B |
 Estonia |
$0.3B |
 Latvia |
$0.3B |
 Croatia |
$0.3B |
 Slovenia |
$0.2B |
 Luxembourg |
$0.1B |
 Albania |
$0.1B |
 North Macedonia |
$0.1B |
 Montenegro |
$0.1B |
 Iceland |
$0.01B |
The U.S. would have led this spending and contributed 66% to this estimated technology spend.
The Importance of Technology in Defense
Modern networks run today’s battlefields, and militaries deploy advanced machinery such as drones, sensors, and artificial intelligence.
Consequently, governments are increasing spending on these defense technologies which span a wide variety of sectors. They cover everything from industrials and robotics to cybersecurity and augmented reality.
A Differentiated Exposure
By investing in defense tech, investors gain exposure to a distinct market.
Governments, largely disconnected from economic cycles, procure more of these technologies each year and offer a meaningful diversification benefit to investors.
The Global X SHLD ETF provides investors with exposure to companies, including those in the AI and big data sectors, that are well-positioned to benefit from the adoption of defense tech.
In the third and final part of the Investing in Defense series, we will discover exactly how much the U.S. Department of Defense spends on defense technology.
Learn more about the Global X Defense Technology ETF (SHLD).
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- Source: https://www.visualcapitalist.com/sp/gx03-mapped-how-much-does-nato-spend-on-defense-technology/
