Israel Sets New Defense Export Record for Fifth Year in a Row
Israel’s defense exports hit a new high in 2025, reaching $19.2 billion. This marks nearly a 30% increase from the previous year, according to the country’s defense ministry. Over the past five years, defense exports have doubled, and quadrupled in the last decade, largely driven by high demand for rockets, missiles, and air defense systems.
This year also saw a record in government-to-government agreements, amounting to about $10 billion, which made up more than half of the total business done in 2025. Maj. Gen. (Res) Amir Baram, the Director General of Israel’s Ministry of Defence, along with Brig. Gen. (Res) Yair Kulas, head of the International Defence Cooperation Directorate (SIBAT), shared this news with Defence Minister Israel Katz.
The report highlighted that Israeli defense companies secured hundreds of new contracts globally throughout the year. Notably, more than half of these deals, specifically 53%, were considered mega-deals worth $100 million or more.
Missile systems, rockets, and air defense solutions continued to dominate the market, accounting for 29% of total deal volume. There was also a significant rise in demand for observation and optronics systems, which jumped to 22% from just 6% the prior year.
This remarkable growth in the defense sector comes amid ongoing conflicts, especially since Hamas militants launched attacks from Gaza on October 7, 2023.
