Israel’s defense exports have almost doubled from $8 billion to over $15 billion in just five years.
By Hezy Laing
Over the past three decades, Israel’s defense industry has transformed from a regional supplier into a global powerhouse of military innovation and exporting.
This evolution has been driven by a combination of strategic necessity, technological ingenuity, and a robust ecosystem of defense companies that have consistently pushed the boundaries of modern warfare.
At the heart of this transformation are five leading firms: Israel Aerospace Industries (IAI), Rafael Advanced Defense Systems, Elbit Systems, IMI Systems (now part of Elbit), and Aeronautics Ltd.
Each of these companies has carved out a distinct niche, contributing to Israel’s reputation as a top-tier exporter of defense solutions.
Israel Aerospace Industries, the largest of the group, specializes in aerospace, satellites, drones, and missile defense systems, including the Arrow and Barak series.
Rafael is best known for developing the Iron Dome, David’s Sling, and Trophy active protection systems, which have revolutionized battlefield survivability.
Elbit Systems has emerged as a global leader in electro-optics, unmanned platforms, and command-and-control technologies, with a footprint in over 30 countries.
IMI Systems, now integrated into Elbit, was historically focused on munitions, armored vehicles, and artillery systems, and continues to supply key components to the IDF.
Aeronautics Ltd. has become a major player in tactical drones and surveillance platforms, supporting both domestic and international clients.
The growth of Israel’s defense industry has been exponential.
In the early 1990s, exports hovered around $1 billion annually.
By 2020, that figure had surged past $8 billion, with Israeli systems deployed in over 60 countries.
Today it is over $15 billion annually.
This expansion has been fueled by continuous conflict-driven innovation, a strong R&D culture, and strategic partnerships with the United States, Europe, and Asia.
Israel’s defense sector has also adapted to new domains such as cyber warfare, artificial intelligence, and space-based surveillance.
The integration of civilian tech into military platforms has allowed Israeli firms to stay ahead of global trends and meet evolving battlefield demands.
As geopolitical tensions rise and traditional alliances shift, Israel’s defense industry is poised to become even more self-reliant and export-driven.
Its blend of agility, innovation, and combat-tested reliability ensures that it will remain a dominant force in global defense markets for years to come.
