In 2024, Israeli arms exports reached a record $14.8 billion, nearly doubling over five years.
By Hezy Laing
Israel’s defense industry continues to defy expectations, standing as one of the most advanced and influential arms exporters in the world. Despite its relatively small size, the country has built a formidable reputation for technological innovation, battlefield-tested systems, and strategic adaptability.
In 2024, Israeli arms exports reached a record $14.8 billion, nearly doubling over five years. This surge placed Israel eighth globally in weapons exports between 2020 and 2024, accounting for 3.1% of the international arms market. The sector employs nearly 100,000 people, representing about a quarter of Israel’s manufacturing workforce, and serves as a cornerstone of the national economy.
Israel’s defense products are in high demand across the globe. Europe leads as the largest buyer, accounting for 54% of exports, followed by Asia-Pacific at 23%, Abraham Accords countries at 12%, and North America at 9%. These figures reflect Israel’s growing appeal to NATO members and Indo-Pacific nations seeking cutting-edge military solutions.
The country’s expertise spans several critical domains. Its missile defense systems—such as Iron Dome, David’s Sling, Arrow 2/3, and Barak MX—are world-renowned for intercepting threats with precision. In the realm of unmanned aerial vehicles, Israeli drones like the Heron and Harop are widely deployed for surveillance and combat missions. Cyber and electronic warfare capabilities are another area of strength, with advanced radar, signal intelligence, and jamming technologies developed for both domestic and export use.
Precision-guided munitions, including smart artillery and anti-tank missiles, are produced by leading firms like Elbit Systems and Rafael. These companies, along with Israel Aerospace Industries (IAI), form the backbone of the industry. Elbit is the largest private defense firm, specializing in electronics and UAVs. Rafael is best known for developing the Iron Dome, while IAI, a government-owned entity, manufactures aircraft, satellites, and missile systems.
A key factor in Israel’s success is its ability to fuse civilian innovation with military needs. Technologies in artificial intelligence, optics, and communications are increasingly integrated into defense platforms, creating versatile systems that adapt to modern warfare.
