Israel’s Defense Exports Hit a Record High: $19.2 Billion in 2025

Israel’s defense exports posted their strongest year ever in 2025, with the total value of new deals signed around the world reaching $19.2 billion — more than 53 billion shekels, the Defense Ministry announced today (Tuesday). That marks an increase of about 30% compared to the previous year, continuing a steep growth trend in which defense exports more than doubled within five years and quadrupled within a decade.

One of the standout figures in the report is the volume of government-to-government (GTG) deals, which reached about $10 billion — more than half of all agreements signed this year.

The report also shows that 53% of all agreements signed in 2025 were mega-deals worth more than $100 million each. In addition, 13% of the deals ranged between $50 million and $100 million, 19% were between $10 million and $50 million, and 15% of the agreements were valued at up to $10 million.

Missile, rocket, and air-defense systems continued to lead Israeli defense exports, accounting for 29% of total deal volume. They were followed by observation and optronics systems, which saw a major jump and reached 22% of all deals, compared to just 6% the previous year. Manned aircraft and avionics, as well as radar and electronic warfare systems, each accounted for 11% of the deals, while command, control, communications, and computing systems made up 7%.

Other export sectors included firearms and launch systems (6%), unmanned aerial vehicles and drones (4%), satellites and space systems (3%), vehicles and armored personnel carriers (2%), intelligence, information, and cyber systems (2%), naval systems and platforms (2%), and ammunition and munitions (1%).

Geographically, Europe was the main destination for Israeli defense exports, with 36% of the deals, followed by Asia and the Pacific region with 32%. Countries in the Middle East and North Africa (MENA) accounted for 15% of the agreements, North America for 13%, while Latin America and Africa each recorded 2%.

At the Defense Ministry, officials attributed the sharp surge in part to the operational achievements of Israel’s defense establishment since the October 7 attack. At the same time as the fighting and increased production for the IDF, defense industries continued supplying systems to foreign customers as well. According to the ministry, operational achievements across different arenas — including Operation "As a Lion" in Iran in June 2025 — together with the field experience gained in the use of Israeli systems, contributed to rising demand for Israel’s defense technologies.

Defense Minister ישראל כ"ץ said, "There is a clear and unmistakable line connecting the achievements of the IDF across all combat arenas, the remarkable capabilities of Israel’s defense industries, and of course the success of defense exports around the world." He added: "The very fact that even during a third year of war, Israel continues to break records in defense exports is proof of the tremendous esteem in which Israel’s defense establishment is held across the wider world."

Defense Ministry Director General, Maj. Gen. (res.) Amir Baram, also addressed the figures: "The sharp rise in defense exports reflects the quality of Israeli industry, global demand, the operational successes of the IDF, and our unique ecosystem, but it is also the result of a deep reform carried out by the Defense Ministry over the past year to reduce regulation and open new markets, leading to giant deals." In his words, "Today, our force-building budget relies to a large extent on these partnerships, but we must not be satisfied with that."