Israel’s 2025 Defense Exports Surpass $19.2 Billion

JERUSALEM — Israel’s defense exports hit a record $19.2 billion in 2025, marking the third consecutive year of growth, according to the Ministry of Defense. This surge aligns with the country’s largest-ever defense budget and record order backlogs from defense companies.

Defense Minister Israel Katz emphasized the link between the IDF’s battlefield successes across multiple fronts, the advanced capabilities of Israel’s defense industries, and the strong performance of global defense exports.

Over half of the 2025 deals, totaling 53%, were categorized as “mega-deals” valued above $100 million. Missile, rocket, and air defense systems remained dominant, accounting for 29% of total volume—up from 28% in 2024 and 36% in 2023.

Observation and optronics systems saw a significant rise to 22% of exports in 2025, compared to 6% in 2024. Drones, a historically key export, held steady at 4%, up from 1% in 2024. Radar and electronic warfare systems maintained 11% of exports, marginally increasing from 10% in 2024.

The ministry outlined the following 2025 export breakdown: manned aircraft and avionics (11%), C4I and communication systems (7%), weapon stations and launchers (6%), drones and UAVs (4%), satellites and space systems (3%), vehicles and armored personnel carriers (2%), intelligence and cyber systems (2%), maritime systems (2%), and ammunition (1%).

Geographically, 36% of exports went to Europe, 32% to Asia and the Pacific, 15% to the Middle East, and 13% to North America—contrasting with 2024’s 54% to Europe. The Ministry of Defense Director General, Amir Baram, highlighted reforms such as expanded market access and streamlined licensing as key drivers.

The ministry noted that defense industries operated continuously to support the IDF while fulfilling international contracts. Israel’s ongoing conflicts, including the Gaza war and participation in Operation Epic Fury with the U.S., have accelerated the deployment of advanced systems like the Arrow 3 and Barak naval defense, alongside new laser-based air defense technologies.

Baram credited the growth to strategic market expansion, stronger partnerships, and reduced export regulations, which enabled landmark deals. He also emphasized the importance of R&D investment and increased munitions production to sustain technological leadership.

Yair Kulas, head of the Ministry’s International Defense Cooperation Directorate, pointed to rising global demand for defense systems as a factor, noting that SIBAT and the Ministry are actively expanding Israel’s global defense partnerships to showcase its industry’s capabilities.

Government-to-government deals accounted for a record $10 billion in 2025, reflecting deeper strategic ties and international trust in Israel’s defense sector, according to Kulas.

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