Israel Information Technology Report

Providing expert analysis, independent forecasts and competitive intelligence on the information technology industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, Information Technology Risk Reward Index, Macroeconomic Forecast, Company Profiles and Regional and Country Industry Overviews.

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  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Israel Information Technology Report
Product Price

BMI View: Israel is a mature and advanced IT market, with high penetration of devices and solutions and a strong ecosystem of advanced technology firms. In the hardware segment the maturity of the market translates to reduced growth potential, but in software and services there are still opportunities as new technologies will drive enterprise investment from firms looking to generate efficiencies and increase capabilities in competitive markets. We expect software and services spending growth will drive an overall IT market CAGR of 3.7% over 2016-2020 to a total of ILS 24.59 bn.

Latest Updates & Industry Developments

  • IT hardware sales will expand from ILS4.36bn in 2016 to ILS4.53bn in 2020, corresponding to a compound annual growth rate (CAGR) of 0.9%. A mature PC market and pressures on replacement spending mean we expect the hardware segment to be flat over the medium term.

  • Software sales will increase from ILS5.96bn in 2016 to ILS7.14bn in 2020, a CAGR of 4.6%. Data analytics and cyber security solutions are forecast to outperform, while cloud availability adds upside through the potential to deepen the SME market.

  • IT services sales are forecast to grow from ILS10.95bn in 2016 to ILS12.92bn in 2020, at a CAGR of 4.2%. Demand for cloud computing, Internet of Things (IoT) and outsourcing services is expected to be robust.

Software & Services To Drive Growth, With Hardware To Be Flat
IT Market Forecast By Segment (2013-2019)
f = BMI forecast. Source: BMI
BMI Industry View
Latest Updates & Industry Developments
Industry Forecast
Latest Updates
Structural Trends
Table: Enterprise Trends - GVA By Vertical (Israel 2015-2020)
Table: IT Industry - Historical Data And Forecasts (Israel 2013-2020)
Industry Risk/Reward Index
Industry Risk Reward Ratings
Table: Middle East And Africa IT Risk/Reward Index, Q4 2016
Market Overview
Recent Developments
Cloud Computing
IT Services
Industry Trends And Developments
IT Hardware Trade
Table: Middle East IT Hardware Trade, 2009-2014
Table: Israel IT Hardware Trade, 2010-2015
IT Industry Analysis
Table: Israel IT Hardware Industry, 2011-2014
Table: IT Software & Services Industry, 2011-2014
Regulatory Development
Table: IT Regulatory Authorities
Table: Government Initiatives
Competitive Landscape
Israel IT Companies
IT Vendors - EMEA, 2015
Table: Computer Hardware
Table: Software
Table: Cloud
Table: IT Services
Table: Major Electronics Retailers
Table: Major Online Retailers
Regional Overview
Demographic Forecast
Table: Population Headline Indicators (Israel 1990-2025)
Table: Key Population Ratios (Israel 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025)
Table: Population By Age Group (Israel 1990-2025)
Table: Population By Age Group % (Israel 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

The Israel Information Technology Report features BMI Research'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).


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 Macroeconomic Forecast

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).


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.