Research & Reports

Israel's Defense and Aerospace Industry: 2026 Market Report

Battle Tested & Ready to Grow

Israel's defense and aerospace sector has reached an inflection point. Following the October 7, 2023 attack, military spending surged 65%, defense exports hit a record $14.8 billion, and the industry now ranks as the world's 7th largest arms exporter — with IAI and Rafael both planning public listings.

This exclusive I3 Capital Group research report, authored by Blair Carey, CFA, delivers a comprehensive analysis of the sector for investors and capital markets participants seeking to understand one of the most dynamic defense ecosystems in the world.

The report covers:

  • Industry history, structure, and the post-October 7 inflection point

  • Market size, revenue outlook through 2028, and supply and demand dynamics

  • Profiles of 18 publicly traded small- and mid-cap companies, including dual-use classifications

  • Full SWOT analysis and investor risk factors

  • Recent capital markets transactions across the sector

DOWNLOAD THE FULL REPORT
DOWNLOAD THE FULL REPORT