Israeli defence exports surge as Tel Aviv expands global security partnerships

Israel's defence exports rose for a third consecutive year in 2025, reaching a record $19.2 billion. The announcement comes as Israel has approved its largest-ever defence budget and major domestic defence companies continue to report record order backlogs.

Defence Minister Israel Katz said the export performance reflected the connection between Israel's military operations and the capabilities of its defence industry, as highlighted by Breaking Defense.

“There is a clear and unmistakable thread connecting the IDF’s battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defence industries, and the success of Israeli defence exports around the world,” Katz said.

More than half of all export agreements signed during the year — 53% — were classified as “mega-deals,” each valued at more than $100 million.

Missile, rocket and air defence systems remained the largest export category, accounting for 29% of total deal volume. Although still dominant, their share declined from 48% in 2024 and 36% in 2023.

The ministry highlighted significant growth in demand for observation and optronics systems, which represented 22% of exports in 2025, compared with just 6% a year earlier.

Radar and electronic warfare systems accounted for 11% of exports, broadly unchanged from 10% in 2024. Other major categories included manned aircraft and avionics (11%), command, control, communications, computers and intelligence (C4I) systems (7%), weapon stations and launchers (6%), drones and unmanned aerial vehicles (4%), satellites and space systems (3%), armored vehicles (2%), intelligence and cyber systems (2%), maritime platforms (2%), and ammunition and armaments (1%).

Europe remained the largest destination for Israeli defence exports, receiving 36% of total sales in 2025. However, that represented a sharp decline from 54% in 2024. The Asia-Pacific region accounted for 32% of exports, while the Middle East received 15% and North America 13%.

Israel's defence industry has drawn increased international attention since the outbreak of the war triggered by the October 7, 2023 Hamas attack and subsequent regional conflicts. Several systems, including the Arrow 3 missile defence system and the Barak naval air-defence system, have been deployed operationally, while new technologies such as laser-based air defences have also entered service.

The defence ministry attributed part of the export growth to government efforts to expand access to new markets, strengthen strategic partnerships and streamline export licensing procedures.

Defence Ministry Director General Amir Baram similarly credited the record performance to the strength of Israel's defence-industrial ecosystem and its ability to rapidly develop and field advanced military technologies.

By Nazrin Sadigova