Israel’s defense exports hit new record in 2024

In a year of war, with combat challenges at home and political challenges abroad, including banning companies from leading international exhibitions, the Israeli defense industry achieved a new record in defense exports in 2014: 14.795 billion dollars, an increase of about 11.7 % out of 2023 and doubled the amount five years ago, the Ministry of Defense.

The main driver of demand was Europe, as the defense budgets increased due to the Russia-Ukraine war, and the proportion of Israeli defense exports has jumped from 35 % to 54 %. The interesting increase during the war in the countries of Abraham Accords, which, after its decrease from 24 % to only 3 % in 2023, jumped again to 12 % in 2024. On the contrary, a sharp decrease in the Asia and Pacific region was recorded, the largest destination until last year, from 48 % to 23 %.

“There is difficulty in Asia and the Pacific, but even there, making an effort to adapt ourselves to the markets,” says the head of the International Defense Ministry (SIBAT. General (Al -Daqqa) Yar Collas. The ministry explains the challenge in Asia, similar to other markets, including the United States and Europe, through the demand for local production. Currently, India’s policy (the largest defense export destination in Israel) and other countries is that as part of deals, they will receive knowledge, and some production will be made there. “We understood that we need to allow our industries to be relevant, because even in NATO tenders, there is a local subsidiary.”

Another record has been achieved in the sums of deals, with the first time ever, more than half of the deals worth $ 100 million or more. According to SIBAT, there was a jump last year from 40 % to 56.8 % in transactions in this range. At the same time, 17.4 % of the total deals came from small transactions of up to $ 10 million, and 16.3 % in the range of $ 10-50 million, and the rest was in the range of 50-100 million dollars. “We are calling for the fighting policy for every deal,” Collap. “Even if it is a small system and a limited market, we are working to be there.”

The main engine of deals is the G2G (government to the government). Israeli agents such as Greece, G2G prefer due to the government umbrella of the deal and the ability to work in one treatment with many Israeli industries. Consequently, the total G2G transactions in the Ministry of Defense with its counterparts all over the world reached a record of $ 6.7 billion. This means that 45 % of Israeli defense exports last year led the Ministry of Defense.

Air defense performs the demand

The war created a major challenge to the Israeli defense industries. Companies must provide Israel’s defensive needs, sometimes at the expense of delaying the delivery of customers abroad, or if possible and sometimes more than the number of production lines. At the same time, the war has increased the demand for products more because it was “tested” – proved in the battlefield.

“A mixture of industries, the Israeli Defense Army and the Defense Ministry in the world,” says Collas. “When engineers serve industries in reserves and then return to development, this is unique for Israel. This leads to an increase in global demand.”

Global demand is led by air defense systems, especially because of the Russia-Ukraine war, which has witnessed widespread use of missiles, and above all drone. Israel’s success in dealing with unprecedented Iranian attacks in April and October last year put its own defense industry as the growing international demand in this field, and this also reflects in SIBAT data. About 48 % of Israeli defense exports in 2024 were air defense systems. This equals almost all other Israeli deals combined. In 2023, for comparison, air defense systems constituted “only 36 % of the size of deals. Growth is evident in each of the large proportion of deals (100 million dollars or more) and the percentage of air defense systems from the total in Israel’s main deals in this field, most notably the sale of share 3 by Israel Ruwarkuz Indizer dollar.

2024 numbers do not reflect the international interest in the laser -based air defense system. Development is led by the Ministry of Defense for Defense, Research and Development (MAFAT) and Raphael. “It raises attention, has potential. However, with every system we produce, or in development, we understand that we must protect systems. So, we choose our customers carefully,” says Iron Beam Kulas.

The areas where IAI emerge are satellites and area, as well as radar and electronic warfare, each of which represents 8 % of exports. In July 2024, according to what was reported, IAI sold satellites to Morocco, a country in the Ibrahim Agreement, for about one billion dollars. A disturbing trend in drones and unmanned air vehicles (drones) can be seen. In 2022, these constituted about 25 % of the total deals, while in 2023 decreased to only 4 % – and this year represents only 1 %.

Last November, Elbit announced that it had won $ 335 million contracts to supply Hermes 900 UAVS and a European country’s defense systems. Contracts, which will be implemented for three and a half years, also include Puls. Weapons, ammunition and bombers weapons made up about 2 % of exports and about 3 % of the total revenue last year.

Challenges after the war

It is about to finish the first half of 2025, and despite encouraging data, the SIBAT president admits a major challenge. “The pictures from Gaza and the accusations in The Hague have an effect. This increases the ministry’s challenge, and we must see how we can deal.”

The other difficulty lies in the supply chains – the challenge that started during the Covid and exacerbated during the war due to the effects of the Houthi attacks on the shipping and rocket launch corridors, leading to the intermittent closure of Ben Gurion Airport.

Collas said that the war has highlighted the advantages of Israeli defense companies, which were not previously clear in the global market: “Over the years, the two countries have sought quality and price, and in recent years, another major factor has entered where Israeli companies have a 2-3-year advantage.

It was published by Globes, Israel Business News – En.globes.co.il – on June 4, 2025.

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