The Israel Ministry of Defense (IMOD) announced that the country’s defense exports reached an all-time high of $19.2 billion in 2025, marking the fifth consecutive year of record-breaking growth. This figure reflects a nearly 30% increase over the previous year, more than doubling exports within five years and quadrupling them over the past decade.
As part of the Ministry’s ongoing defense export reform, 2025 also recorded an unprecedented volume of government-to-government (GTG) agreements, totaling approximately $10 billion and accounting for over half of the total deal value.
The annual report was presented to Defense Minister Israel Katz by IMOD Director General Maj. Gen. (Res.) Amir Baram and SIBAT Director Brig. Gen. (Res.) Yair Kulas. It highlights that Israeli defense industries secured hundreds of contracts worldwide, supported by the Ministry, with 53% of deals classified as mega-deals valued at over $100 million each. The remaining agreements were distributed across contracts valued at $50–100 million (13%), $10–50 million (19%), and up to $10 million (15%).
Missile, rocket, and air defense systems remained the leading export category, contributing 29% of total deal volume. Observation and optronics systems saw a significant rise, accounting for 22%, up from 6% the previous year. Other key segments included radar and electronic warfare systems (11%), manned aircraft and avionics (11%), and C4I and communication systems (7%). Additional segments included weapon stations and launchers (6%), drones and UAVs (4%), satellites and space systems (3%), vehicles and APCs (2%), intelligence, information, and cyber systems (2%), maritime systems and platforms (2%), and ammunition and armaments (1%).
Since October 7, 2023, Israel’s defense sector has operated under sustained wartime conditions, maintaining continuous production for the Israel Defense Forces (IDF) while fulfilling international commitments. Operational performance, including during Operation Rising Lion against Iran in June 2025, alongside the combat-proven effectiveness of Israeli systems, has driven increased global demand.
The report attributes the surge in exports to a combination of operational success, technological capability, and policy reforms aimed at expanding markets, strengthening partnerships, and easing export regulations while maintaining oversight of sensitive technologies.
Geographically, Europe accounted for 36% of exports, followed by Asia-Pacific (32%), the Middle East and North Africa (15%), North America (13%), and smaller shares from Latin America and Africa (2% each).
Defense Minister Israel Katz: “There is a clear and unmistakable thread connecting the IDF’s battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defense industries, and the success of Israeli defense exports around the world. 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. These achievements are built on the IDF’s 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 growing export figures reinforce Israel’s position as a leading defense-technology power, but they also carry a responsibility: to keep innovating, to keep raising the bar, and above all to continue delivering for the IDF’s operational needs during wartime – while meeting rising demand from partners around the world.”
IMOD Director General Maj. Gen. (Res.) Amir Baram: “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. Today, our force buildup budget relies heavily on these partnerships, yet we cannot stop there. As part of a defense industrial policy, we must advance complementary measures – investment in research and development and the expansion of production lines across the industries. This is the essential step for ensuring independence in critical munitions and interceptors, maintaining technological superiority, and generating Israel’s next surprises.”
SIBAT Director Brig. Gen. (Res.) Yair Kulas: “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. Israel’s defense industry is initiative-taking, dynamic, and creates effective solutions across air, sea, and land, at the forefront of technology. SIBAT and the Israel Ministry of Defense are leading a consistent and deliberate effort to expand Israel’s defense cooperation with countries around the world, to make the capabilities of the industry and the IDF accessible globally. Behind the numbers stands an industry that has proven a unique capability – supplying the IDF with munitions and systems for a full-scale military campaign, while simultaneously expanding export markets and signing numerous deals with governments and customers around the world. The historic record in government-to-government (GTG) deals – approximately $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.
