Business Monitor International


Israel Information Technology Report

Published 13 May 2014

  • 83 pages
 
$1,295.00
Israel Information Technology Report

BMI View: Israel's IT market is the most developed in the Middle East with a rich ecosystem of major global investors, start-ups and universities engaged in cutting edge research. These features compensate for the relatively small and mature market that drags growth rates below those of many other MEA markets. We forecast IT spending to reach ILS23.4bn in 2014, with the software and services segments outperforming hardware sales . We forecast IT spending to continue growing throughout our five-year forecast period to 2018, accelerating in the later years as GDP and private consumption growth recover from government austerity measures imposed in 2013. The market will increasingly be driven by software and services in key sectors such as government, defence and financial services , resulting in IT services accounting for 36.8 % of overall market spending by 2018.

Headline Expenditure Projections

Computer Hardware Sales: ILS9.55bn in 2013, rising 2% in local currency terms to ILS9.75bn in 2014. We expect a return to growth in 2014 to be driven by the launch of 4G mobile networks and ongoing migration to the Windows 8 OS.

Software Sales: ILS5.1bn in 2013, increasing 4.5% y-o-y to ILS5.3bn 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, increasing from ILS7.9bn in 2013 to ILS8.3bn 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

  • The growing emphasis of many multinational IT vendors on software and services revenues has led several of them to direct more investment in R&D at the Israeli market. Israel's strong reputation as...

Table of Contents

BMI Industry View
7
SWOT
9
IT SWOT
9
Wireline SWOT
11
Political
12
Economic
13
Business Environment
14
Industry Forecast
15
IT Market
15
Table: IT Industry - Historical Data And Forecasts (loccur mn) (Israel 2011-2018)
15
Broadband
20
Internet
20
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Israel 2011-2018)
20
Macroeconomic Forecasts
22
Table: Israel - Economic Activity
27
Industry Risk Reward Ratings
28
Table: Middle East And Africa RRRs - Q3 2014
31
Market Overview
32
Hardware
32
Software
38
Services
42
Industry Trends And Developments
46
Regulatory Development
50
Table: IT Regulatory Authorities
50
Table: Government Initiatives
53
Competitive Landscape
54
International Companies
54
Table: Intel
54
Local Companies
55
Table: Amdocs
55
Table: Check Point
56
Table: Imperva
57
Table: Retalix
58
Company Profile
59
Ness
59
Matrix
64
Regional Overview
68
Table: OSN Recent Content Developments
69
Demographic Forecast
73
Demographic Outlook
73
Table: Israel's Population By Age Group, 1990-2020 ('000)
74
Table: Israel's Population By Age Group, 1990-2020 (% of total)
75
Table: Israel's Key Population Ratios, 1990-2020
76
Table: Israel's Rural/Urban Population Split, 1990-2020
76
Methodology
77
Industry Forecast Methodology
77
Sources
78
Risk/Reward Ratings Methodology
79
Table: It Risk/Reward Ratings 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).

Coverage

Executive Summary

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.

Regional Overview

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

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 Industry Forecasts

Historic data series and forecasts to end-2017 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

BMI Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2017 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.

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