Israel’s Defense Industry Sees Historic Sales Surge Amid Global Demand

Israel's defense industry, including major players such as Elbit Systems, Rafael Advanced Defense Systems, and Israel Aerospace Industries (IAI), is poised to achieve record-breaking sales in 2024. According to a recent Wall Street Journal report, these companies have seen a remarkable 25% increase in their collective backlog, surpassing a 23% surge observed in 2023.

The rise in sales is largely attributed to the battlefield success of Israel's advanced defense systems, such as the Iron Dome and the Arrow missile, which have demonstrated their capabilities in over a year of ongoing conflict. The effectiveness of these systems in real-world scenarios has attracted interest from foreign nations seeking to bolster their own defense capabilities.

One such example is Slovakia, which signed a €560 million deal to acquire the Barak MX Integrated Air Defense System developed by IAI. Slovakia's Defense Ministry emphasized the importance of partnering with a country experienced in using the technologies, recognizing Israel's extensive expertise in air defense.

In addition to growing international sales, Israel's domestic defense sector has also been expanding. This week, the Israeli Ministry of Defense signed two significant agreements with Elbit Systems, totaling approximately NIS 1 billion. These agreements aim to enhance the Israel Defense Forces' (IDF) self-sufficiency and readiness. The first deal focuses on procuring heavy air munitions to strengthen Israel's strike capabilities, while the second involves the construction of a national raw materials facility to reduce reliance on foreign suppliers and support the local supply chain.

As demand for Israel's defense technology continues to rise both at home and abroad, the nation's defense industry is adapting its production pace to meet the increased requests. Boaz Levy, CEO of IAI, remarked, "We needed to work much more than we used to because demand increased in Israel and all over the world."

With Israel’s defense sector experiencing an unprecedented surge in demand, the country’s position as a leading player in global defense technology is only set to strengthen in the years ahead.