Israel sets new defense export record, surpassing $19 billion in 2025
Defense exports reached an all-time high for the fifth consecutive year, driven by major international contracts, government-to-government agreements, and demand for combat-proven Israeli systems
Israel’s defense exports reached a record $19.2 billion in 2025, marking the fifth consecutive year of growth and setting a new all-time high, according to the Israel Ministry of Defense.
The figure represents a nearly 30 percent increase over the previous year, more than doubling total defense exports over the past five years and quadrupling them over the last decade. The ministry also reported a record level of government-to-government (GTG) agreements, which totaled approximately $10 billion and accounted for more than half of all export deals signed during the year.
According to the report, Israeli defense industries signed hundreds of new contracts worldwide in 2025, with more than half (53%) of the deals being valued at more than $100 million each.
Missile, rocket, and air defense systems remained the largest export category, accounting for 29% of total deal volume. Observation and optronics systems recorded a significant increase, rising to 22 percent from 6 percent the previous year. Other major categories included radar and electronic warfare systems, manned aircraft and avionics, communications systems, drones, satellites, armored vehicles, maritime systems, and cyber-related technologies.
The ministry said the growth came despite Israeli defense industries operating under wartime conditions since October 7, 2023. Companies continued supplying the Israel Defense Forces while fulfilling international contracts. According to the report, operational achievements by the IDF and the combat performance of Israeli systems, including during Operation Rising Lion against Iran in June 2025, contributed to growing international demand.
Europe accounted for the largest share of exports at 36%, followed by Asia-Pacific at 32%, the Middle East and North Africa at 15%, and North America at 13%.
Defense Minister Israel Katz said the export figures reflected international confidence in Israel’s defense establishment and highlighted the connection between military achievements and demand for Israeli technology. “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,” Katz said in a statement.
Officials also credited recent reforms aimed at opening new markets, expanding strategic partnerships, and easing export regulations while maintaining safeguards for classified technologies. The ministry described defense exports as a key component of Israel’s broader strategy to strengthen its defense industry, support military force buildup, and deepen international partnerships.