Israel Information Technology Report Q3 2016

Date: May 18, 2016
Pages: 63
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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Includes 3 FREE quarterly updates

BMI View: Israel's IT industry registered strong export performance in 2015, led by the chip industry, but domestic IT spending weakened slightly as shekel depreciation was a drag on confidence and reduced the affordability of imports. We believe that the slowdown will be short-lived and forecast total IT market spending will increase at a CAGR of 5.6% 2016-2020 to a total of ILS29.2bn, with software and IT services expected to lead the market as the adoption of cloud computing services and IoT services increases. Meanwhile, a mature hardware market means that segment will underperform, but income growth trends point to opportunities at the premium end of the market that could offer wider margins.

Latest Updates & Industry Developments
  • IT hardware sales will expand from ILS6.25bn in 2016 to ILS6.95bn in 2020, corresponding to a compound annual growth rate (CAGR) of 2.7%. A mature market, but deferred upgrades from 2014 and 2015 alongside household income growth should put the segment on a faster growth trajectory.
  • Software sales will increase from ILS6.12bn in 2016 to ILS7.54bn in 2020, a CAGR of 5.4%. Cybersecurity solutions are in high-demand, while in the broader applications market cloud availability should broaden adoption, but this will be countered slightly by greater more intense price competition.
  • IT services will the outperforming segment of the sector, and is forecast to grow from ILS11.14bn in 2016 to ILS14.73bn in 2020, at a CAGR of 7.2%. Demand for cloud computing, Internet of Things (IoT) and outsourcing services expected to be robust.
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
  Table: Middle East & Africa IT Risk/Reward Index, Q3 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
  Table: Major Electronics Retailers
  Table: Major Online Retailers
IT Vendors
  Table: Intel
  Table: Amdocs
  Table: Check Point
  Table: Imperva
  Table: Mellanox
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
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