Israel Information Technology Report

Published 19 May 2015

  • 81 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Israel Information Technology Report

BMI View: Israel's vibrant ICT start-up community and highly skilled tech workers have continued to attract high levels of investment in 2015, following a record breaking year in 2014 . We expect this trend to continue, as global IT firms look to leverage innovative solutions emerging from Israel's start-up ecosystem to accelerate their transition towards high-growth software and services such as cloud computing and big data analytics.

Nevertheless , because of the comparatively high penetration of IT products and services, as well as its small population, Israel's IT market is expected to grow more slowly than most others in the region. Given it s geopolitical location and the uptick in violence in the region in 2014 and 2015 , we expect spending on cyber security to be a key driver of growth, contributing to software and services' increasing share of IT sales over the five years to 2019 .

Headline Expenditure Projections

Computer Hardware Sales: Forecast to reach ILS9.4bn in 2015, up from ILS9.225bn in 2014. We expect growth to accelerate in 2015, driven by the full launch of 4G mobile networks and ongoing upgrades to the Windows 8 and Windows 10 operating systems.

Software Sales: ILS6.414bn in 2015, up 9.3% year-on-year (y-o-y) from ILS5.867bn in 2014. Enterprise software spending will be the main growth driver as device and data proliferation will result in increased spending on customer relationship management (CRM), databases and business intelligence.

IT Services Sales: We expect IT services sales will continue to outperform the rest of the IT market, reaching ILS8.793bn in 2015, up from ILS8.263bn in 2014. Cyber security services will outperform in terms of growth, but it will be stable sectors such as government and defence that continue to account for the majority of spending.

Key Trends And Developments

Data from Israel's Office of the Chief Scientist (OCS) show that the high-tech sector declined as a proportion of GDP between 2007 and...

Table of Contents

BMI Industry View
7
SWOT
9
IT SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
IT Market
15
Table: IT Industry - Historical Data And Forecasts (Israel 2012-2019)
15
Macroeconomic Forecasts
20
Economic Analysis
20
Expenditure Breakdown
21
Table: Economic Activity (Israel 2010-2019)
25
Industry Risk Reward Index
26
Middle East And Africa Risk/Reward Index - Q315
26
Table: MEA IT Risk/Reward Index - Q315
29
Market Overview
30
Hardware
30
Software
35
Services
39
Industry Trends And Developments
42
Regulatory Development
48
Table: IT Regulatory Authorities
48
Table: Government Initiatives
50
Competitive Landscape
52
International Companies
52
Table: Intel
52
Local Companies
53
Table: Amdocs
53
Table: Check Point
54
Table: Imperva
55
Table: Mellanox
56
Company Profile
57
Matrix
57
Ness
61
Hilan
65
Table: Hilan Financial KPIs, 2008-2014
68
Regional Overview
69
Middle East & Africa
69
Demographic Forecast
72
Table: Population Headline Indicators (Israel 1990-2025)
73
Table: Key Population Ratios (Israel 1990-2025)
74
Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025)
74
Table: Population By Age Group (Israel 1990-2025)
75
Table: Population By Age Group % (Israel 1990-2025)
76
Methodology
77
Industry Forecast Methodology
77
Sources
78
Risk/Reward Index Methodology
79
Table: It Risk/Reward Index Indicators
80
Table: Weighting Of Components
81

The Israel Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

BMI's Israel Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Israel.

Key Benefits

  • Benchmark BMI's independent IT Industry forecasts for Israel to test other views - a key input for successful budgetary and strategic business planning in the Israeli IT market.
  • Target business opportunities and risks in Israel's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Israel.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverag

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.

BMI Industry Forecast

Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

  • IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
  • Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

Information Technology Risk Reward Index

BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI MacroeconomicForecast

BMI forecasts for all headline macroeconomic indicators to end-2019 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Competitive Landscape

Full analysis of the competitive landscape within the hardware, software and services sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Regional Overview

Cross-border analysis of country markets in the region, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Sources

The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc