Israeli defense-tech investment expected to reach USD1b in 2026
Investment in Israel’s defense-tech sector is expected to reach approximately USD 1 billion in 2026, up from around USD 360 million last year, according to figures presented during Israeli Hi-Tech Week.
The expansion comes as Israeli startups increasingly move technologies from development into operational use at unusually rapid speeds. Around 180 startups have provided solutions responding to needs that emerged during recent fighting, while the Defense Ministry’s research and development directorate currently works with approximately 320-350 companies.
Defense Ministry procurement from startups reached approximately NIS 1 billion during the first half of 2026, nearly twice the level recorded during the corresponding period last year. Industry participants pointed to autonomous systems, military AI, sensing, and other technologies developed and tested in operational environments as key areas attracting international attention.
Despite growing investment, smaller companies continue to face challenges including lengthy qualification processes, regulation, and difficulties accessing major international procurement programs.
Read more in The Jerusalem Post.
