Business Monitor International


Israel Information Technology Report

Published 13 February 2014

  • 83 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 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 relatively stronger growth in software and services. We believe IT spending will remain on a positive trajectory throughout our five-year forecast period to 2018 , accelerating over the long term in line with rising GDP and private consumption growth. 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 a hotbed for innovative software...

Table of Contents

BMI Industry View
7
SWOT
8
IT SWOT
8
Wireline SWOT
10
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
IT Market
14
Table: Israel IT Industry - Historical Data And Forecasts (ILSmn)
14
Broadband
19
Internet
19
Table: Telecoms Sector - Internet Historic Data And Forecast, 2010 - 2017
19
Macroeconomic Forecasts
21
Economic Analysis
21
Table: Israel - GDP By Expenditure
27
Industry Risk Reward Ratings
29
Table: Middle East And Africa Risk/Reward Ratings, Q214
32
Market Overview
33
Hardware
33
Software
38
Services
42
Industry Trends And Developments
47
Regulatory Development
52
Table: IT Regulatory Authorities
52
Table: Government Initiatives
55
Competitive Landscape
56
International Companies
56
Table: Intel
56
Local Companies
57
Table: Amdocs
57
Table: Check Point
58
Table: Imperva
59
Table: Retalix
60
Company Profile
61
Ness
61
Matrix
66
Regional Overview
70
Demographic Forecast
75
Demographic Outlook
75
Table: Israel's Population By Age Group, 1990-2020 ('000)
76
Table: Israel's Population By Age Group, 1990-2020 (% of total)
77
Table: Israel's Key Population Ratios, 1990-2020
78
Table: Israel's Rural/Urban Population Split, 1990-2020
78
Methodology
79
Industry Forecast Methodology
79
Sources
80
Risk/Reward Ratings Methodology
81
Table: It Risk/Reward Ratings Indicators
82
Table: Weighting Of Components
83

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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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