Israel Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

Israel Defense Market Report Overview

As of 2023, the Israel defense budget, inclusive of US aid, was estimated to be $23.6 billion in 2023 and is expected to achieve a CAGR of more than 2% during 2024-2028. Over the forecast period, Israeli defense expenditure is anticipated to benefit from an overall improvement in the country’s economy and political stability. As the third largest defense market in the Middle East, after Saudi Arabia and the UAE, Israel is a lucrative defense market.

Israel Defense Market Outlook, 2023-2028 ($ Billion)

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The Israel defense market research report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Israel Defense Market Drivers

The key factors driving the Israel defense market growth are border dispute with Palestine, conflict with Iran, threats from terrorist groups, and modernization of armored personnel carriers.

Border Dispute with Palestine: As the only Jewish State, Israel has historically faced hostility from neighboring Arab countries. The country has been trying to quell an intense Palestinian insurgency and for decades has been engaged in a conflict with neighboring Palestine in the West Bank and the Gaza Strip. Palestine has accused Israel of illegal occupation of its territory, which the Palestinian people consider to be rightfully theirs. The dispute also has religious sentiments attached to it, with both nations claiming ownership over the country’s capital city of Jerusalem, which is considered holy by the Jewish, Christian, and Muslim faiths. As a consequence, Israel has been exposed to an extended insurgency on its frontiers. The situation is further complicated by the absence of an officially recognized border between Israel and Palestine, which continues to challenge Israeli efforts to fence off its frontier.

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Israel Military Doctrines and Defense Strategies

Israeli defense doctrine is the mission of the Israeli Defense Forces (IDF) to safeguard territorial integrity, defend the existence and sovereignty of Israel and defend Israeli citizens, and fight against all forms of terrorism which may pose a threat to routine life.

The key premises of the Israeli security concept include maintaining extended periods of security calm. The Israeli defense doctrine calls for the Israeli defense forces to be capable of maintaining extended periods of peace, and to enable the development of science, society, and the economy in addition to enhancing the military’s preparedness to face war or any emergency for which its services could be called upon.

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Israel Defense Market Segmentation by Sectors

The key sectors in the Israel defense market are missiles and missile defense systems, submarines, military rotorcraft, and electronic warfare, among others. Missiles and missile defense systems is the largest sector in 2023. Platform-based missile defense systems feature as the single largest sub-sector, accounting for a significant value over 2023–28. Israel and the US have co-developed an entire family of Arrow missile defense systems, encompassing the Arrow 1, Arrow 2 (Block-2, Block-3, Block-4, and Block-5), Arrow 3, and the Arrow 4 missile defense system, in addition to the David’s Sling missile defense system.

Israel Defense Market Analysis by Sectors, 2023 (%)

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Israel Defense Market - Competitive Landscape

A few of the leading defense companies operating in Israel are:

• Israel Aerospace Industries Ltd
• Rafael Advanced Defense Systems Ltd
• Cellebrite Ltd
• Bet Shemesh Engines Holdings (1997) Ltd
• FMS Enterprises Migun Ltd

Israel Aerospace Industries Ltd: Headquartered in Lod, Tel Aviv, Israel, Israel Aerospace Industries Ltd (IAI) provides aerospace and defense technology for military and commercial markets. The company designs, develops, manufactures and supplies business jets, and fighter aircraft, among others. It manufactures communications satellites, light weight imaging satellites, observation satellites and satellites launchers. IAI also offers unmanned air systems, anti-ballistic defense systems, naval weapons systems, C4I systems and maritime radars. The company operates in the US, Russia, Brazil, Vietnam, India, Chile, Australia, Germany, Colombia, South Korea, and Thailand.

Israel Defense Market Analysis by Companies

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Segments Covered in the Report

Israel Defense Sectors Outlook (Value, US$ Billion, 2019-2028)

• Military Fixed-Wing Aircraft
• Missiles And Missile Defense Systems
• Submarines
• Military Rotorcraft
• Military Land Vehicles
• Electronic Warfare
• Artillery
• Naval Vessels and Surface Combatants
• Military Fixed-Wing Aircraft

Scope

This report offers detailed analysis of Israel defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

It provides an in-depth analysis of the following –

• Israel defense budget: detailed analysis of Israel 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
• Regulation: the procurement policy and process is explained. This is coupled with an analysis of Israel military doctrine and strategy to provide a comprehensive overview of Israel military procurement regulation.
• Security Environment: political alliances and perceived security threats to Israel are examined; there help to explain trends in spending and modernisation.
• Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
• Competitive landscape and strategic insights: analysis of the competitive landscape of Israel’s defense industry.

Key Highlights

• Drivers of Defense expenditure include Hostile neighbors, coupled with terror threats, spur defense spending

• Major ongoing procurement program include procurement of F-35A/F-35I Lightning II/Adir,Darkar Class Submar, CH-53K King Stallion

Reasons to Buy

• Determine prospective investment areas based on a detailed trend analysis of the Israel defense market over the next five years
• Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the French market and identify the opportunities offered.
• Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
• Identify the major threats that are driving the Israel defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion.
• Channel resources by focusing on the ongoing programs that are being undertaken by the Israel government.
• Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contract awarded, and financial analysis, wherever available.