| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 3.67 Billion |
| Market Size (2030) | USD 8.65 Billion |
| CAGR (2025 - 2030) | 18.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Israel Cloud Computing Market Analysis
The Israel Cloud Computing Market size is estimated at USD 3.67 billion in 2025, and is expected to reach USD 8.65 billion by 2030, at a CAGR of 18.71% during the forecast period (2025-2030).
- Israel's innovative tech ecosystem, expanding digital infrastructure, and widespread cloud adoption across diverse sectors are positioning it as a pivotal player in the global cloud computing arena. The nation's vibrant startup culture, coupled with a strong focus on cybersecurity and AI integration, is propelling the growth of its cloud market. Enterprises, both large and small, are gravitating toward cloud solutions, motivated by the promise of efficiency, cost savings, and scalability.
- Israel's digital transformation efforts are bolstering the cloud computing landscape. With the government prioritizing enhancements to digital infrastructure, industries such as healthcare, finance, and education are witnessing accelerated cloud adoption.
- Israel's stature as a global cybersecurity leader lends significant weight to its cloud services. The nation's adeptness at securing cloud environments instills confidence, making organizations more inclined to embrace cloud solutions, especially with advanced security protocols in place to mitigate data breach risks.
- There's an increasing trend in Israel of melding AI and machine learning with cloud services. Sectors like finance, healthcare, and technology are increasingly seeking cloud platforms that provide AI-driven analytics, predictive insights, and automation tools.
- To bolster cloud computing, the Israeli government has rolled out multiple initiatives. Notably, the "Nimbus" project, aimed at transitioning the public sector to the cloud, is poised to significantly elevate cloud adoption rates in the near future.
- However, the Israeli cloud market grapples with challenges concerning data sovereignty and adherence to international regulations. As businesses increasingly migrate to the cloud, the intricacies of navigating data privacy laws and ensuring compliance with stringent regulatory standards—especially in sectors like finance and healthcare—are becoming more pronounced.
Israel Cloud Computing Market Trends
Rapid Digitalization and growth of Data Centers to Drive the Market
- As industries increasingly embrace digitization, Israel is witnessing a swift expansion of data centers, pivotal to the cloud computing framework. Tech giants such as Google, Amazon, and Microsoft have set up cloud regions and data centers in Israel. This strategic move allows businesses to transition to cloud solutions with enhanced efficiency and security. The established data centers not only bolster scalable and dependable cloud services but also streamline the migration process for businesses moving to the cloud.
- For instance, the Israeli Ministry of Defense avails cloud computing services from Google. Project Nimbus, a USD 1.2 billion cloud computing and AI agreement, has stirred controversy. It involves the Israeli government and tech giants Google and Amazon. As per the Israeli Ministry of Finance, Project Nimbus provides public cloud services to the government, the defense department, and the IDF.
- Furthermore, in September 2024, Salesforce, a cloud software firm, unveiled its Hyperforce cloud platform in Israel. This move ensures that sensitive data from both the government and companies remains local. After two years of development, the platform will kick off on Amazon Web Services (AWS) infrastructure, with a potential shift to Google Cloud Platform in the future, as stated by the company.
- Israel's businesses and government sectors are undergoing a digital transformation, resulting in a surge of data generation. Daily, vast amounts of data are produced, ranging from digital healthcare records to e-commerce platforms. This burgeoning data generation necessitates cloud storage and computing solutions that are both cost-effective and scalable. As organizations grapple with managing this data locally, the allure of the cloud for storing and processing large datasets becomes evident.
- Moreover, Israel showcases a robust digital engagement. For example, in 2023, SurfShark, a VPN service brand, reported that Israel scored 0.67 on the Digital Quality of Life Index. In this latest ranking, Israel secured the 17th position out of 121 countries.
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Telecom and IT to Hold a major share
- Israel's Telecom and IT sectors are experiencing rapid growth, fueled by a heightened dependence on digital communication and sophisticated IT solutions. To support high-speed internet, 5G, and other communication services, telecom companies are demanding extensive data processing, storage, and management capabilities. This need has led to the widespread adoption of cloud computing in the telecom industry, given its flexibility and scalability in managing vast data volumes.
- The demand for cloud computing in Israel's telecom industry is being further propelled by the rollout of 5G networks. These networks, with their high-speed and low-latency data transmission, need to find optimal management through cloud platforms. By leveraging cloud infrastructure, telecom companies can adeptly manage the surge in data traffic, oversee network management, and utilize services like edge computing. This strategic move not only boosts service quality but also ensures cost efficiency.
- For instance, Bezeq, an Israeli telecommunications company, reported that prior to the onset of the Israel-Hamas war, from September 15 to October 6, 2023, Israelis averaged 15.9 gigabytes of daily internet usage. Following the war's outbreak on October 7, average download volumes surged by 35 percent in the subsequent week. While this uptick moderated by November 7, 2023, internet traffic volumes continued to outpace pre-war averages.
- In April 2024 - Pelephone unveiled its inaugural 5G MAX network package in Israel, boasting internet speeds of up to 6 GB. The establishment of the network's core came with a NIS 50 million (~USD 13.3 million) investment. The company highlighted the network's potential to aid Israel during emergencies. Subscribers to this new core can expect enhanced browsing, improved call quality, richer content access, elevated traffic rates, reduced latency, and prioritized network access during peak times.
- As data privacy regulations tighten and cybersecurity concerns escalate, Israel's IT and telecom sectors are increasingly embracing secure cloud computing. Telecom operators, in particular, are prioritizing cloud infrastructures fortified with stringent security measures to safeguard sensitive customer data. In response, Israeli cloud providers are ensuring compliance with both local and international regulations, enhancing the appeal of cloud adoption for IT and telecom firms that manage extensive volumes of personal and sensitive information.
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Israel Cloud Computing Industry Overview
Israel's cloud computing market is on a steady upward trajectory, propelled by the growing embrace of digital technologies, heightened awareness of cloud service advantages, and the allure of online solutions. The market's growth rate is shaped by surging demands across various services, including Infrastructure, Platform, Software, and Business Processes. As Israel leans further into technological innovations, the cloud computing sector anticipates a surge in demand for remote work and virtual collaboration tools. This uptick is largely attributed to the increasing startup ecosystem, the proliferation of small businesses, and the broader shift toward a remote work culture. Moreover, with the Israeli populace placing a premium on education and innovation, there's been a notable uptick in the adoption of online learning platforms and e-learning solutions, further propelling the public cloud market's expansion.
The Israel Cloud Computing Market is fragmented, with major players like Amazon, Microsoft, etc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
Israel Cloud Computing Market Leaders
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Alibaba Group Holding Limited
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Amazon Web Services (AWS)
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Google LLC
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IBM Corporation
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Microsoft Corporation
- *Disclaimer: Major Players sorted in no particular order
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Israel Cloud Computing Market News
- May 2024: Weka, an Israeli data storage and management platform, has successfully secured USD 140 million in fresh capital, achieving a valuation of USD 1.6 billion — more than double its previous worth. This significant fundraising milestone catapults the Tel Aviv-based startup into the exclusive club of Israeli "unicorns," a term reserved for companies valued at USD 1 billion or more. Weka's innovative software platform empowers businesses and organizations to efficiently manage and store workloads across both public and private clouds. These workloads, often demanding vast data volumes and computing power, span applications like artificial intelligence, machine learning, and high-performance computing.
- May 2024: TeraSky, a global leader in innovative digital solutions and cloud services, has forged a strategic alliance with Microsoft. This collaboration aims to enhance the Azure Public Cloud computing platform through the integration of Generative AI. By harnessing their combined strengths, both companies seek to empower customers to fully realize the benefits of transitioning to Microsoft Azure and adopting Generative AI.
Israel Cloud Computing Industry Segmentation
Cloud computing provides on-demand access to computer resources, particularly data storage and processing power, without requiring direct user management. Typically, large cloud infrastructures distribute their functions across multiple data centers located in various places.
Israel cloud computing market report is segmented by type (public cloud (IaaS, Saas, and PaaS), public cloud, and private cloud), organization size (SMEs and large enterprise), end-user verticals (manufacturing, education, retail, transportation and logistics, healthcare, BFSI, telecom and IT, government and public sector, other end-user verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above.
| By Type | Public Cloud | IaaS |
| PaaS | ||
| SaaS | ||
| Private Cloud | ||
| Hybrid Cloud | ||
| Organization Size | SMEs | |
| Large Enterprises | ||
| End-user Industries | Manufacturing | |
| Education | ||
| Retail | ||
| Transportation and Logistics | ||
| Healthcare | ||
| BFSI | ||
| Telecom and IT | ||
| Government and Public Sector | ||
| Others (Utilities, Media & Entertainment etc) |
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Israel Cloud Computing Market Research FAQs
How big is the Israel Cloud Computing Market?
The Israel Cloud Computing Market size is expected to reach USD 3.67 billion in 2025 and grow at a CAGR of 18.71% to reach USD 8.65 billion by 2030.
What is the current Israel Cloud Computing Market size?
In 2025, the Israel Cloud Computing Market size is expected to reach USD 3.67 billion.
Who are the key players in Israel Cloud Computing Market?
Alibaba Group Holding Limited, Amazon Web Services (AWS), Google LLC, IBM Corporation and Microsoft Corporation are the major companies operating in the Israel Cloud Computing Market.
What years does this Israel Cloud Computing Market cover, and what was the market size in 2024?
In 2024, the Israel Cloud Computing Market size was estimated at USD 2.98 billion. The report covers the Israel Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Israel Cloud Computing Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Israel Cloud Computing Industry Report
Statistics for the 2025 Israel Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Cloud Computing analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
