Israel: Strong Increase in Defense Technology Companies

Startup Nation Central, a non-profit promoting the Israeli innovation ecosystem around the world, has updated its Israel Defense Tech Landscape Map to include 312 companies operating in the sector. While the original map was developed in 2024, the updated map now reflects significant growth in the sector, driven in part by the ongoing war. The war has accelerated the growth of existing defense tech companies and sparked a wave of entrepreneurial ventures to address the pressing security needs of a rapidly changing battlefield. As a result, Israel’s defense tech ecosystem continues to evolve at a remarkable pace, with new companies rising to meet the demand for more advanced and tailored solutions. The updated map is part of a broader Defense Tech Spotlight that captures key trends, investment activity, and global momentum, as governments and investors ramp up efforts to strengthen national security through innovation.

“Israel's defense tech sector is a global leader in innovation, renowned for its cutting-edge technologies and advanced solutions. With a strong emphasis on research and development, the sector has attracted significant investment, driving the growth of numerous startups and established companies. Israel's unique security challenges have fostered a culture of rapid innovation, allowing the country to create some of the most advanced defense systems in the world,” said Startup Nation Central CEO Avi Hasson.

In Israel, innovation in Aerospace, Defense, and Homeland Security (HLS) is driven by necessity, and technology is rapidly deployed to solve real-world challenges. From early-stage startups to established industry leaders, the ecosystem responds swiftly to emerging threats and operational needs – creating scalable solutions that are increasingly adopted worldwide. The sector's expansion has been fueled by a combination of military needs, government support, and partnerships with private industry, positioning Israel as a hub for defense tech innovation. This growth is also reflected in the increasing number of companies in the space, reflecting a booming market for defense technology both domestically and internationally.

With over 312 companies active across Aerospace, Defense, and HLS technologies, the country has become a critical player in advancing next-generation security solutions, including autonomous systems, cyber defense, dual-use aerospace, AI and robotics.

The map, available on Startup Nation Central’s ecosystem business-engagement platform - Finder,  highlights companies in the sector and was validated with the help of subject matter experts and stakeholders from within the ecosystem. The different defense tech subsectors included are Aircrafts & Avionics, Combat Equipment & Systems, C41 & Defense Electronics, Unmanned Systems, Aerospace Defense and HLS, space tech, etc.

“Forged in resilience and tested by real-world security demands, Israel’s defense tech sector is redefining global security. As emerging threats accelerate, nations can’t afford to react – they must anticipate. With warfare shifting to cyber, autonomous, and space-based technologies, Israel’s relentless innovation cycle, shaped by necessity and battlefield testing, provides a critical edge. This isn’t just about keeping pace; it’s about leading the future of defense,” said Ilana Sherrington-Hoffman, Global Partnerships at Startup Nation Central.

Caroline Haïat