U.S. Department of Defense Technology Spending: 2020 vs 2026
Key Takeaways
- In 2026, the U.S. Department of Defense (DoD) has requested $384 billion for defense system procurement and R&D.
- DoD spending is expected to be 71% higher in 2026 than in 2020.
- Missile Defense Programs will see the largest spending increase in 2026 (+247%), while Ground Systems will see the only decrease (-21%), compared with 2020 numbers.
The U.S. Department of Defense (DoD) is expected to allocate a substantial $384 billion as part of the U.S. National Security Strategy to modernize all branches of the U.S. military and invest in additional research and development.
For part three of the Investing in Defense series, Visual Capitalist has partnered with Global X ETFs to provide a detailed exploration of U.S. defense technology spending and its evolution since 2020.
The Need for Advanced Technology
The DoD spends billions of dollars every year on acquisition, research, and development. Below is a table showing a breakdown of expected spending by program for 2026 compared to 2020 by the U.S. Department of Defense:
| System | FY2020 | FY2026 (Requested) |
|---|---|---|
| Aviation and Related Systems | 57.7 | 68.3 |
| Command, Control, Communications, Computers, and Intelligence (C4I) Systems | 10.2 | 23.2 |
| Ground Systems | 14.6 | 11.6 |
| Missile Defense Programs | 11.6 | 40.2 |
| Missiles and Munitions | 21.6 | 35.7 |
| Shipbuilding and Maritime Systems | 34.7 | 65.0 |
| Space Based Systems | 11.9 | 34.0 |
| Total | 162.3 | 278.0 |
DoD spending is expected to be 71% higher in 2026 than in 2020. This growth was driven mainly by the U.S. military’s need for advanced technology. However, the DoD spent more on some areas than others.
Missile Defense Programs could receive the largest increase in funding with a 247% increase between 2020 and 2026, going from $11.6 billion to $40.2 billion.
Ground Systems is the only program that is expected to see a decrease in funding. The FY2026 budget request in 2026 is $11.6 billion, a 21% reduction versus $14.6 billion in 2020.
Shielding Investments
Governments worldwide, not just the U.S. DoD, want to use modern technology and update their militaries. The advancement of defense technology and the many conflicts worldwide have led to defense spending rising to $2.5 trillion in 2024.
As the needs of modern militaries are often disconnected from standard economic cycles, investing in defense technology presents investors with a strong diversification opportunity.
The Global X Defense Technology ETF (SHLD) offers investors exposure to companies that benefit from the adoption of defense technologies or manufacture these technologies.
The ETF invests in companies across various sectors, including robotics, aircraft, AI, and big data systems.
The 3-part Investing in Defense series explores the landscape of defense spending and the importance of defense technology.
Part one covers global defense spending, while part two examines the potential defense technology expenditures of NATO nations.
Learn more about the Global X Defense Technology ETF (SHLD).
-
Politics5 hours agoMapped: How Much Does NATO Spend on Defense Technology?
NATO defense technology spend is surging in 2024 since the Ukraine–Russia war began. Who leads and how will it shape tomorrow’s battlefield?
-
Politics7 hours agoGlobal Defense Spending in 2024
Defense spending rose to $2.5T in 2024, up from $2.2T in 2023. How does North America’s spending compare with other regions?
-
Economy2 weeks agoRanked: P/E Ratios in Emerging vs. Developed Markets
Emerging markets P/E ratios trade at a 30%+ discount to developed peers. Which countries are most undervalued today?
-
Economy2 weeks agoCharted: Foreign Direct Investment in Emerging Markets
Emerging Markets drew $430B in foreign direct investment in 2022, outpacing global growth. How have these trends evolved over time?
-
Economy2 weeks agoMapped: Population of Emerging Markets
Emerging Markets are countries transitioning from developing to developed status. How significant are they in terms of global population?
-
Markets2 months agoCharted: The Rising Share of U.S. Data Center Power Demand
As advanced AI adoption surges, U.S. data center demand is projected to reach nearly 12% of the nation’s power.
-
Markets2 months agoWhat’s Driving America’s Growing Electricity Demand?
The U.S. EIA believes that by 2050, U.S. power demand will surge by nearly 50%.
-
Energy2 months agoBreaking Down America’s $3.7 Trillion Infrastructure Funding Gap
Despite many government efforts to modernize U.S. infrastructure, the funding gap stood at a staggering $3.7 trillion in 2025.
-
Politics4 months agoBreaking Down the West’s $146 Billion 2024 Defence Technology Investment
Visual Capitalist has partnered with Global X ETFs to break down the $146 billion spent on defence technology by the U.S. and the EU.
-
Politics4 months agoMapped: How NATO Defence Spending Has Changed Since the Ukraine-Russia War
Visual Capitalist has partnered with Global X ETFs to explore how NATO defence spending has changed since the start of the Ukrain-Russia war.
-
Politics4 months agoVisualized: Global Defence Spending in 2024
Visual Capitalist has partnered with Global X ETFs to explore global defence spending and find out which nation spends the most on defence.
-
Economy5 months agoBreaking Down the 117th Congress’s $1.2T Infrastructure Investment
Graphic showing U.S. infrastructure investment highlighting that investment is primarily going to roads, bridges, and other major projects.
-
Economy5 months agoReport Card: Grading U.S. Infrastructure
This graphic shows U.S infrastructure grades and highlights the general low grade.
-
Energy10 months agoNuclear Energy Supply Forecast by Region
Visual Capitalist and Global X partnered to explore global nuclear energy demand, and how it’s changing, in the coming years.
-
Energy10 months agoCharted: $300 Billion in Global Nuclear Energy Investment
Visual Capitalist and Global X partnered to explore nuclear energy investment and find out which regions spent the most on nuclear power.
-
Energy10 months agoVisualized: Nuclear Energy Generation by Region
Visual Capitalist and Global X ETFs explore regional nuclear energy generation and why nuclear energy is critical to the energy transition.
-
Technology1 year agoRanked: Which Countries Have the Most Data Centers?
For this graphic, Visual Capitalist partnered with Global X ETFs to rank the nations by the number of data centers they currently operate.
-
Technology1 year agoCharted: How Much Data is Stored Online?
For this graphic, Visual Capitalist has partnered with Global X ETFs to explore online data generation and show how much data could be generated between 2015…
-
Technology1 year agoVisualized: The Impact of AI on Revenue
In this graphic, Visual Capitalist has partnered with Global X ETFs to explore the financial impact of AI adoption across various industries.
-
Green2 years agoMapped: U.S. Investment in Sustainable Infrastructure (2021-2023)
This graphic shows high levels of investment in U.S. clean infrastructure between 2021 and 2023.
-
Technology2 years agoVisualized: What is the Artificial Intelligence of Things?
Explore the explosive growth of the Artificial Intelligence of Things (AIoT) industry and its transformative impact across sectors.
-
Technology2 years agoA Visual Guide to AI Adoption, by Industry
AI adoption impacts many industries, with finance leading. Discover how AI tools optimize operations, mitigate risks, and drive growth.
-
Technology2 years agoRanked: Artificial Intelligence Startups, by Country
Find out which countries are winning the race when it comes to the number of AI startups and private investment .
-
Technology3 years agoOn the Road to Electric Vehicles
Electric vehicles are playing a key role in the decarbonization of road transport. But how much further do we need to go to hit net zero?
-
Mining3 years agoShould You Invest in Disruptive Materials?
Disruptive materials are experiencing a demand supercycle. See how these materials are helping revolutionize next generation technologies.
-
Technology3 years agoThematic Investing: 3 Key Trends in Cybersecurity
Cyberattacks are becoming more frequent and sophisticated. Here’s what investors need to know about the future of cybersecurity.
