Israel's Defense Exports Soar, Driven by Advanced Weapon Systems
Israel's defense export revenue has seen a dramatic surge, reaching approximately $19.2 billion in 2025, a 30% increase from the previous year. Over the past five years, this figure has doubled, and in the last decade, it has quadrupled. The lion's share of this revenue comes from three major defense contractors: Rafael, Elbit Systems, and Israel Aerospace Industries, while smaller firms and startups lag behind, according to N12.
A prime example of Israel's defense success is the Spike anti-tank missile family. Initially developed after the Yom Kippur War to counter large tank formations, early versions like the Gil and Tamuz were used in conflicts, with the Tamuz seeing significant action in the First Lebanon War and later in 2006. Modern Spike missiles feature "fire-and-forget" capabilities, real-time video feedback to operators, and the ability to redirect targets mid-flight. Advanced models incorporate artificial intelligence and image processing. The longest-range variant, the SPIKE NLOS (Tamuz), can strike targets beyond line of sight up to 32 kilometers away. These missiles are sold to 48 countries, including 22 NATO members, with approximately 50,000 systems sold and 10,000 deployed in exercises and combat. Recent deals in 2026 include sales to 21 nations, with Germany signing a contract worth around 2 billion euros in October 2025. The U.S. Army has also selected SPIKE NLOS for its Apache helicopters.
Another significant export is the Trophy active protection system for tanks and armored vehicles. This system detects, tracks, and neutralizes incoming anti-tank missiles and projectiles before impact. It achieved its first combat interception in March 2011 near the Gaza border. Trophy is currently installed on 18 types of armored platforms, with over 2,000 systems delivered globally accumulating more than 2 million hours of combat experience. It has been chosen for the U.S. Abrams and European Leopard tanks, with a recent contract in early 2026 for approximately 330 million euros for Leopard 2A8 tanks destined for Lithuania, the Netherlands, Czech Republic, and Croatia.
The Arrow 3 (Hetz-3) ballistic missile defense system, developed with U.S. involvement since the 1980s, intercepts ballistic missiles outside the atmosphere. In the past two years, it has intercepted hundreds of missiles launched from Iran and Yemen. Germany signed a substantial contract exceeding $6.5 billion for Arrow 3, even before its extensive combat use. Sales to third countries require U.S. approval.
Israel has also been a pioneer in developing unmanned aerial vehicles (UAVs) into full combat platforms. Its Heron and Hermes families, including Heron 1, Heron TP, Hermes 450, and Hermes 900, are widely exported. Germany leases Heron TP, and a joint Israeli-German training squadron operates at Tel Nof Airbase. The Hermes 450 has been adapted into the British Watchkeeper, and India produces a version of the Hermes 900. However, Israel faces increasing competition from Turkey and China, whose export restrictions can open markets for their own defense products.
The Iron Dome (Kipat Barzel) air defense system, developed by Rafael in about two and a half years, has achieved over 90% interception success rate since its first combat use on April 7, 2011. Its naval variant, C-Dome, has been deployed on Sa'ar 6 corvettes and successfully intercepted a target in April 2024. The U.S. has purchased two Iron Dome batteries, and the Marine Corps has acquired components. A key component within Iron Dome is the ELM-2084 radar, also known as MMR, developed by Elta (IAI). Initially designed for artillery, this radar can track multiple targets simultaneously, including missiles, shells, and drones. Over 250 MMR units have been sold globally for approximately $5 billion, with customers including Canada, India, and European nations. According to aviation and missile defense expert Tal Inbar, the success of these systems lies in their autonomy and minimal operator burden, coupled with the competitive advantage gained from extensive combat experience.
