Israel defence exports hit record $19.2bn amid global demand for battle-tested technology

Israeli defence exports reached a record $19.2 billion in 2025, rising nearly 30 percent year-on-year and more than doubling in five years as governments around the world increased spending on missile defence and military technology.

The defense exports report released this week by the Israel Ministry of Defence this week showed strong international demand for missile defence systems, surveillance technologies and other combat-proven military equipment. More than half of all export agreements signed during the year were worth over $100 million each, while government-to-government deals reached a record $10 billion, accounting for 53 percent of total sales.

The figures come as Israel’s defence industry continues to attract international attention following the country’s military operations since October 2023, with officials pointing to the operational performance of Israeli systems as a key factor behind growing overseas demand.

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Missile, rocket and air defence systems remained Israel’s largest export category, accounting for 29 percent of total sales. Observation and optronics technologies saw one of the sharpest increases, rising to 22 percent of exports compared with just 6 percent the previous year.

Europe was the largest overseas market, accounting for 36 percent of exports, followed by Asia-Pacific at 32 percent. Countries in the Middle East and North Africa represented 15 percent of sales, while North America accounted for 13 percent.

Defence Minister Israel Katz said: “There is a clear and unmistakable thread connecting the IDF’s battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defense industries, and the success of Israeli defense exports around the world. The fact that Israel continues to break defense export records even in the midst of a third year of war speaks to the tremendous respect and confidence the global community has placed in Israel’s defense establishment.”

He added that “the growing export figures reinforce Israel’s position as a leading defense-technology power, but they also carry a responsibility: to keep innovating, to keep raising the bar, and above all to continue delivering for the IDF’s operational needs during wartime – while meeting rising demand from partners around the world.״

The Ministry of Defence also credited a recent export reform programme aimed at opening new markets, expanding strategic partnerships and streamlining licensing procedures.

Director General Amir Baram said: “The sharp surge in defence exports reflects the quality of Israel’s defence industry, global demand, the IDF’s operational successes and our unique ecosystem,” he said.

Israeli defence companies signed hundreds of new contracts during the year, with exports now more than four times higher than they were a decade ago.

The latest figures reinforce Israel’s position as one of the world’s leading exporters of advanced defence technology, particularly in areas such as missile interception systems, radar, electronic warfare and military intelligence.