Fast Market Research

Report Published: "Israel Information Technology Report Q3 2014"

Recently published research from Business Monitor International, "Israel Information Technology Report Q3 2014", is now available at Fast Market Research

 
Repost This

Boston, MA -- (SBWIRE) -- 06/06/2014 -- 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.

View Full Report Details and Table of Contents

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 development has made Israeli companies popular takeover targets for multinationals. In April 2014, IBM announced the launch of its Alpha Zone technology accelerator in Tel Aviv, which will recruit start-ups to grow technologies across several areas, including big data, cloud, mobile, security and the Internet of Things. Meanwhile, in the month before US-based Palo Alto Networks confirmed the acquisition of privately held, Tel Aviv-based cyber security firm Cyvera. The financial terms of the acquisition were not confirmed, but industry experts expect the total value of the transaction was around USD200mn.
-

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Computer Technology research reports at Fast Market Research

You may also be interested in these related reports:

- Czech Republic Information Technology Report Q3 2014
- Mexico Information Technology Report Q3 2014
- Hungary Information Technology Report Q3 2014
- Turkey Information Technology Report Q3 2014
- Indonesia Information Technology Report Q3 2014
- Chile Information Technology Report Q3 2014
- Sri Lanka Information Technology Report Q3 2014
- Peru Information Technology Report Q3 2014
- Colombia Information Technology Report Q2 2014
- Canada Information Technology Report Q2 2014