Israel sets record $19.2b in defense exports in 2025

Geographically, the largest percentage of sales, 36%, was with Europe, while Asia and the Pacific accounted for another 32%.

By Pesach Benson, TPS

Israel set a new all-time defense export record in 2025, reaching $19.22 billion, marking the fifth consecutive year of growth, according to Defense Ministry figures released on Tuesday.

“The fact that Israel continues to break defense export records even in the midst of a third year of war speaks to the tremendous respect and confidence the global community has placed in Israel’s defense establishment,” Defense Minister Israel Katz said.

“These achievements are built on the [Israel Defense Forces’] capabilities and those of our broader security forces – in Gaza, Lebanon, Iran, and Yemen. Defense exports are a mirror of Israeli strength, ingenuity, and the ability to think differently.”

The ministry said about $10 billion came from government-to-government agreements, a record high that accounted for more than half of total activity. Hundreds of contracts were signed worldwide, with more than half classified as mega-deals valued at over $100 million.

Geographically, the largest percentage of sales, 36%, was with Europe, while Asia and the Pacific accounted for another 32%.

Defense exports were led by missile, rocket and air defense systems, which made up 29% of total volume.

Observation and optronics systems — electro-optical surveillance and imaging technologies — saw a major rise, climbing to 22% from 6% the previous year.

Maj. Gen. (Res.) Amir Baram, Director General of the Ministry of Defense, said the growth reflects both operational success and policy reform.

“The sharp surge in defense exports reflects the quality of Israel’s defense industry, global demand, the IDF’s operational successes, and our unique ecosystem – but it is also the result of a deep reform carried out by the Ministry over the past year to reduce regulation and open new markets, which led to landmark deals.”

International demand for Israeli military technology has surged as European countries increased their defense budgets in response to Russia’s war in Ukraine.

“The 2025 defense export data, totaling over $19 billion – an all-time record – tells a simple story: many countries around the world have increased their defense and procurement budgets, and are interested in Israel’s defense industry,” said Brig. Gen. (Res.) Yair Kulas, head of the ministry’s International Defense Cooperation Directorate (SIBAT).

SIBAT is the ministry unit responsible for managing and facilitating Israel’s defense exports.

Israel has quietly climbed the ranks to become the world’s seventh-largest arms exporter. In March, it surpassed Britain in global defense sales, according to the Stockholm International Peace Research Institute.

Some deals have made headlines for their scale. Germany purchased the Arrow missile defense system, the largest arms sale in Israeli history.

India also agreed to roughly $10 billion in defense contracts with Israel for drones and air defense systems during Prime Minister Narendra Modi’s visit in February.