Israel’s defense exports reached a new all-time high in 2025, climbing to nearly US$19.2 billion despite mounting international criticism, boycott campaigns, and restrictions on Israeli participation in several major global defense exhibitions.
According to figures released by Israel’s Ministry of Defense on June 2, defense exports surged almost 30 percent from the previous year’s record of US$14.8 billion, marking the fifth consecutive year of growth and underscoring the continued global demand for Israeli military technology.
The latest figures were published by the ministry’s International Defense Cooperation Directorate (SIBAT), which oversees defense export promotion and international military cooperation. The data reveal that Israeli defense manufacturers secured unprecedented sales even as the country remained engaged in multiple military conflicts following the October 2023 Hamas-led attacks that triggered a prolonged regional confrontation.
The achievement is particularly notable given the political and diplomatic challenges faced by Israel over the past two years. Israeli defense companies have encountered growing opposition in parts of Europe and elsewhere, including exclusions from major defense exhibitions and calls for international boycotts linked to the wars in Gaza, Lebanon, Iran, and other regional theaters.
Nevertheless, Israeli defense firms not only met domestic military requirements during wartime but also fulfilled existing export commitments while securing significant new contracts abroad.
The US$19.2 billion export figure represents a dramatic increase from recent years. Israel exported approximately US$13 billion worth of defense products in 2023 before rising to US$14.8 billion in 2024 and reaching the latest record in 2025.
“This is the highest figure ever recorded and the fifth consecutive year in which a new record was set for Israel’s defense exports,” the Defense Ministry said in a statement accompanying the release of the data.
The growth comes at a time when Israel is already among the world’s leading arms exporters. According to the Stockholm International Peace Research Institute (SIPRI), Israel ranked as the world’s seventh-largest exporter of major arms during the 2021–2025 period, accounting for approximately 4.4 percent of global exports.
Given the nearly 30 percent increase recorded in 2025, analysts expect Israel’s share of the global arms market to rise further when future international rankings are published.
A key feature of the latest figures is the growing importance of government-to-government (GTG) agreements. According to SIBAT, approximately US$10 billion—more than half of total defense exports—came through such arrangements.
These agreements are typically negotiated directly between governments, with Israeli defense companies acting as subcontractors rather than primary contracting parties. The model is often viewed as more efficient because it reduces bureaucratic hurdles and can accelerate procurement timelines.
One prominent example is Germany’s acquisition of the Arrow 3 missile defense system, a deal signed between the Israeli and German governments while Israel Aerospace Industries served as the principal industrial contractor.
“The historic record in government-to-government deals—approximately US$10 billion—is not only an economic figure; it reflects the deepening of strategic partnerships and the growing international trust that the Ministry has built with defense ministries around the world,” the Defense Ministry said.
Missile, rocket, and air defense systems remained the largest category of Israeli defense exports in 2025, accounting for 29 percent of total deal volume.
Although this share was lower than the 48 percent recorded in 2024 and 36 percent in 2023, the category continued to dominate export sales, reflecting sustained international demand for advanced missile interception and air defense technologies.
The strong performance comes amid heightened global concerns over missile threats, drone attacks, and regional conflicts, which have driven many countries to strengthen their defensive capabilities.
Observation and optronics systems recorded one of the most significant increases, rising from 6 percent of export volume in 2024 to 22 percent in 2025. Radar and electronic warfare systems accounted for 11 percent of exports, broadly unchanged from the previous year.
Other categories included manned aircraft and avionics systems at 11 percent, command, control, communications, computers, and intelligence (C4I) systems at 7 percent, weapon stations and launchers at 6 percent, drones and unmanned aerial vehicles at 4 percent, satellites and space systems at 3 percent, vehicles and armored personnel carriers at 2 percent, intelligence and cyber systems at 2 percent, maritime systems at 2 percent, and ammunition and armaments at 1 percent.
Israeli officials attributed much of the increased demand to the operational performance of the country’s defense systems during recent conflicts.
“The unprecedented operational achievements, along with the combat experience gained by Israeli developments during the war, created high demand for Israeli technology among many countries,” the ministry stated.
Several systems received extensive operational exposure during recent military campaigns, including the Arrow 3 missile defense system, the Barak naval air defense system, and emerging laser-based air defense technologies.
Despite growing political criticism of Israel in parts of Europe, the continent remained the largest destination for Israeli defense exports in 2025.
European countries accounted for 36 percent of total exports, equivalent to approximately US$5.6 billion. Although lower than the 54 percent share recorded in 2024, Europe continues to be Israel’s most important regional market.
Germany remains one of Israel’s most significant customers. SIPRI data indicate that Israel supplied 55 percent of Germany’s arms imports between 2021 and 2025, making it Germany’s largest foreign defense supplier during that period.
The landmark Arrow 3 missile defense agreement signed in 2023, valued at approximately US$3.8 billion, remains the largest defense contract in Israeli history and symbolizes the expanding security relationship between the two countries.
Israel is also a major supplier to the United Kingdom, accounting for roughly 8.2 percent of British arms imports during the same five-year period, according to SIPRI.
The continued strength of European demand stands in contrast to growing political tensions surrounding Israel’s military operations in Gaza and elsewhere.
The Asia-Pacific region emerged as the second-largest market for Israeli defense products in 2025 and recorded some of the strongest growth rates.
The region accounted for 32 percent of Israeli defense exports, compared with 23 percent in 2024. In monetary terms, exports nearly doubled from approximately US$3.4 billion to US$6.1 billion.
India remains Israel’s single largest export destination. SIPRI data show that India absorbed 29 percent of all Israeli arms exports between 2021 and 2025.
During the same period, Israel supplied 15 percent of India’s total arms imports, making it New Delhi’s third-largest defense supplier after Russia and France.
The relationship has been built over decades and spans missile systems, air defense technologies, drones, surveillance equipment, and electronic warfare systems.
The Philippines has also emerged as a significant customer, with Israel supplying roughly 20 percent of the country’s imported defense equipment.
One of the most striking developments in the latest export figures is the rapid growth of Israeli defense sales to Middle Eastern countries.
The region accounted for 15 percent of Israeli defense exports in 2025, up from 12 percent in 2024 and just 3 percent in 2023.
In value terms, exports to Middle Eastern countries rose from approximately US$1.77 billion in 2024 to nearly US$2.88 billion in 2025.
The increase reflects evolving regional security dynamics and the continuation of defense relationships established following normalization agreements between Israel and several Arab states in recent years.
North America also expanded its share of Israeli defense imports, accounting for 13 percent of total exports in 2025, compared with 9 percent in the previous year.
The record export performance comes despite a series of diplomatic and commercial setbacks faced by Israeli defense firms.
On June 2, France announced restrictions on Israeli participation at Eurosatory, Europe’s largest defense exhibition, scheduled to take place in Paris from June 15 to 19. Israeli government representatives were barred from participation, the country was denied a national pavilion, and companies were prevented from displaying offensive weapon systems.
The move follows earlier French decisions that excluded Israeli companies from the 2024 Eurosatory exhibition and imposed restrictions at the 2025 Paris Air Show.
Elsewhere, Israeli firms were denied participation in the Netherlands Defense Exposition and Symposium (NEDS), while the United Arab Emirates reportedly barred Israeli companies from participating in IDEX 2025.
Several governments have also taken steps to reduce or cancel procurement relationships with Israeli defense manufacturers.
Spain canceled defense contracts worth more than US$1 billion, including plans to acquire SILAM rocket launcher systems based on Elbit Systems’ PULS platform, anti-tank missile launchers, and Rafael’s Litening 5 targeting systems.
Spanish Prime Minister Pedro Sánchez has linked such decisions to concerns over Israel’s military operations in Gaza.
In another significant development, Slovenia announced a comprehensive arms embargo against Israel in 2025, becoming the first European Union member state to prohibit all arms imports, exports, and transit involving Israel.
Israel’s export growth has drawn comparisons with Russia, another major arms exporter that has experienced a dramatic decline in foreign defense sales since the outbreak of the Ukraine war.
According to SIPRI, Russian arms exports fell by roughly 50 percent between 2019–2023 compared with the previous five-year period.
Other analyses suggest an even steeper decline. The Jamestown Foundation estimates that Russian arms exports dropped by as much as 92 percent between 2021 and 2024 as Moscow redirected industrial resources toward domestic military requirements while facing sanctions, inflation, and financial pressures.
In contrast, Israeli defense companies have managed to sustain exports while simultaneously supporting wartime production for domestic military needs.
The Defense Ministry emphasized that Israeli industries have operated “round-the-clock production” to support both the Israel Defense Forces and foreign customers.
Israeli Defense Minister Israel Katz said the export figures demonstrate international confidence in Israel’s defense establishment despite the challenges posed by ongoing conflicts.
“These achievements are built on the IDF’s capabilities and those of our broader security forces—in Gaza, Lebanon, Iran, and Yemen,” Katz said.
As geopolitical tensions continue to reshape defense procurement priorities worldwide, Israel’s latest export figures suggest that operationally proven military technologies remain highly sought after, even amid political controversy. The record-breaking results indicate that, for many governments, strategic and security considerations continue to outweigh diplomatic pressures when making defense procurement decisions.
