Israel Information Technology Report

Published 18 November 2015

Quarterly 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.

Why you should buy this report

  • 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

Register for a FREE Executive Summary

Israel Information Technology Report
Product Price

BMI View: The outlook for the Israeli IT market remains positive overall. The Q116 update reflects the impact of the maturity of the country's hardware market, while IT services are forecast to be the outperforming segment . Our forecast for shekel appreciation presents an improved outlook in US dollar terms in 2016, contrasting with the contraction seen in 2015 as a result of the currency's depreciation. Israel offers a vibrant ICT start-up community and highly skilled tech workers , with innovative solutions fuelling high levels of investm ent in 2015 following a record- breaking year in 2014 .

Latest Updates & Industry Developments

  • We forecast the Israeli IT hardware market to reach a value of ILS6.49bn in 2016, growing at a sluggish compound annual growth rate (CAGR) of 0.04% through to 2019 to reach ILS6.50bn.

  • Software sales will continue to improve, growing at a CAGR of 4.1% to reach ILS7.1bn in 2019, up from 2016's figure of ILS6.3bn.

  • IT services will the outperforming segment of the sector, growing from ILS11.4bn to ILS13.4bn in 2019, recording a CAGR of 5.6% over this period.

IT Services To Outperform
Israel - IT Spending By Segment (2013-2019)
e/f = BMI estimate/forecast. Source: National sources, BMI

Register for a FREE Executive Summary

BMI Industry View
Latest Updates & Industry Developments
Industry Forecast
Latest Updates
Structural Trends
Table: IT Industry - Historical Data And Forecasts (Israel 2013-2019)
Industry Risk Reward Index
Middle East And Africa Risk/Reward Index
Table: MEA IT Risk/Reward Index - Q116
Market Overview
Cloud Computing
Industry Trends And Developments
Regulatory Development
Table: IT Regulatory Authorities
Table: Government Initiatives
Competitive Landscape
International Companies
Table: Intel
Local Companies
Table: Amdocs
Table: Check Point
Table: Imperva
Table: Mellanox
Regional Overview
Middle East And Africa
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 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).


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).


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.