Israel's arms industry booms as global demand for drones and missiles surges
Israel’s arms industry has seen rapid growth in recent years, with sales more than doubling since 2019. By 2025, the country became the world’s seventh-largest weapons exporter, overtaking the UK. This expansion comes amid rising global demand for its military technology, particularly drones and missile systems.
In 2024, Israeli weapons sales reached nearly $15 billion, driven largely by missiles, rockets, and air-defence systems. These products now account for over half of the country’s arms exports. The surge in demand followed increased conflict in the Middle East, including Israel’s military operations in Gaza.
One standout product is Arbel, a drone-jamming system developed by Israel Weapon Industries. Launched in 2024, it has been sold to more than two dozen countries. Another company, ASIO, reported a 400% increase in orders for its rugged Orion smartphone unit from the Israeli army since the Gaza war began. The shift toward military production extends beyond traditional defence firms. Massivit, a 3D printing company, originally made large set pieces for entertainment giants like Disney and Netflix. In 2024, it began producing drone parts for Israel’s defence sector. This pivot led to a 200% rise in buyer inquiries, especially after Israel and the US carried out strikes on Iran in early 2025. Despite this growth, some European countries have restricted arms trade with Israel. Spain cancelled a 2024 deal for anti-tank missile systems from an Israeli subsidiary. Slovenia went further, banning all weapons imports, exports, and transits to and from Israel in response to its actions in Gaza.
Israel’s defence industry has expanded significantly, with exports climbing and new technologies gaining international buyers. However, political tensions have led some nations to cut ties with its arms trade. The sector’s future will likely depend on both military demand and diplomatic relations.
