Israel's Defence Industry: Pillars of Innovation and Security

Elbit Systems

Elbit Systems began in 1966 as Elbit Computers Ltd., a joint effort between Elron Electronic Industries and Israel's Ministry of Defense. Its first product was the Elbit 100 minicomputer, designed to support military needs. Over the decades, the company shifted toward defence electronics. By the early 1980s, it contributed systems for the Lavi fighter jet and the Merkava tank.

Today, Elbit serves as the primary provider of land-based equipment and unmanned aerial vehicles for the Israel Defense Forces (IDF). It produces about 85 percent of the IDF's land equipment and a similar share of drones used by the Israeli Air Force. Key products include the Hermes 450 and Hermes 900 drones, which offer critical intelligence, surveillance, and reconnaissance capabilities. The Iron Sting guided mortar and E-LynX communication systems further showcase its strengths in precision and connectivity.

Historical anecdotes highlight Elbit's impact. During various operations, its systems have delivered real-time data that helped commanders make life-saving decisions. The company has grown significantly, with revenues reaching around $7.9 billion in recent years and a strong order backlog. It employs thousands in Israel and operates globally while staying rooted in Israeli innovation.

Elbit's approach emphasizes integration of advanced electronics, electro-optics, and unmanned systems. This has made its solutions battle-tested and trusted by allies seeking dependable technology.

Israel Aerospace Industries (IAI)

Founded in 1953 as Bedek Aviation Company, IAI started with aircraft maintenance for the young Israeli Air Force. Visionaries like Shimon Peres and Al Schwimmer saw the need for self-reliance. By 1959, the company moved into design and manufacturing.

IAI has since become Israel's largest aerospace and defence firm and a major exporter. It developed iconic systems such as the Kfir fighter jet in the 1970s, which served the IDF effectively. In the missile domain, IAI created the Gabriel sea-to-sea missile in 1964, later upgraded and used by navies worldwide. The Arrow anti-ballistic missile system, developed with U.S. partnership, marked a major milestone in layered defence.

IAI excels in unmanned aerial systems (UAS), radars through its ELTA subsidiary, and space technologies. Israel became one of few nations with full satellite capabilities thanks to IAI's Ofek series. The company also produces the Barak family of missiles, which provide versatile air and missile defence.

With around 15,000 employees, IAI reported revenues near $5-7 billion in recent years and a robust backlog. Its products support both military and civilian needs, from special-mission aircraft to precision-guided weapons. This dual focus strengthens Israel's technological edge and economy.

IAI's story reflects Israel's determination to innovate under pressure. From humble maintenance roots to pioneering space and missile defence, it has helped secure the nation's skies for generations.

Rafael Advanced Defense Systems

Rafael traces its origins to 1948, shortly after Israel's founding, as a research unit under the Ministry of Defense. It evolved into a key developer of armaments. In 1958, it took the name Rafael, standing for the Hebrew acronym for Armament Development Authority.

Rafael's most famous contribution is the Iron Dome system, developed rapidly in response to rocket threats. First deployed in 2011, it has achieved over 90 percent success rates in intercepting short-range rockets, artillery shells, and drones aimed at populated areas. By recent counts, it has performed thousands of combat interceptions, saving countless lives.

Other standout systems include David's Sling for medium-range threats, the Trophy active protection system for tanks (which destroys incoming anti-tank missiles), and the Python air-to-air missiles, proven effective in past conflicts like the 1973 Yom Kippur War. Rafael also advances laser defence with Iron Beam, offering cost-effective interception at the speed of light.

Rafael operates as a government-owned company with a strong export record. Recent sales have hit around $4.8-6 billion annually, with roughly half from international customers and a large order backlog. Its technologies integrate seamlessly into multi-layered defence architectures.

The speed of Iron Dome's development, from concept to operation in about four years, exemplifies Rafael's agility and commitment to protecting Israeli families.

Collective Strength and Global Contribution

These three companies form the backbone of Israel's defence industry, alongside others. Together, they drive exports that reached record levels, often exceeding $12-14 billion annually in recent years. A significant portion involves missiles, air defence, and related systems.

Israel's defence sector benefits from close ties between the IDF, government, and industry. Combat experience informs rapid improvements, creating solutions that are practical and effective. Many nations turn to Israeli technology for reliable protection against diverse threats, from rockets to advanced aerial incursions.

Source:

1. "Israel Science & Technology: Defense Industry," Jewish Virtual Library, American-Israeli Cooperative Enterprise, https://jewishvirtuallibrary.org/israeli-defense-industry.
2. Elbit Systems Ltd., Investor Presentation, August 2025 (PDF), August 2025, https://www.elbitsystems.com/sites/default/files/2025-08/elbit_systems_investor_presentation_august_2025_accessible.pdf.
3. "IAI and the Security of Israel," Israel Aerospace Industries, https://www.iai.co.il/about/history/.
4. Yuval Azulay, "How a Hand-Drawn Sketch Became a $10 Billion Air Defense Missile System," CTech (Calcalist), May 6, 2025, https://www.calcalistech.com/ctechnews/article/s1aenrpxgl.
5. Group Captain D. K. Pandey (Retd), "Pioneering Aerospace and Defence Solutions," SP's Aviation, Issue 11-2023, https://www.sps-aviation.com/story/?id=3407&h=Pioneering-Aerospace-and-Defence-Solutions.
6. Paolo Valpolini, "Rafael Marks 15 Years Since Iron Dome's First Operational Intercept," EDR Magazine, April 8, 2026, https://www.edrmagazine.eu/rafael-marks-15-years-since-iron-domes-first-operational-intercept.
7. "Iron Dome Air Defence Missile System, Israel," Army Technology, updated March 11, 2026, https://www.army-technology.com/projects/iron-dome/.
8. Nachum Kaplan, "Israel's Defense Industry Is Booming," Israel National News (Arutz Sheva), July 31, 2025, https://www.israelnationalnews.com/news/412554.
9. Seth J. Frantzman, "From Europe to Asia: Why Israel's Defense Tech Is in High Demand," The Jerusalem Post, June 8, 2025, https://www.jpost.com/israel-news/article-856964.