Israel Cybersecurity Market Size (2024 - 2029)

Israel Cybersecurity Market Analysis

The Israeli cybersecurity market is estimated to register a CAGR of 12.78% during the forecast period. The market is witnessing new startups, and established players are providing cloud-native and other cybersecurity services. The highly dynamic nature of the market defines the investment perspective of the companies, developing their workforce to overcome the effects of the post-pandemic world and expand product capabilities.

• Different government initiatives have been shaping the cybersecurity market in Israel to streamline the defense capabilities against potential cyber-attacks. In June 2022, the US Department of Homeland Security (DHS) Science and Technology Directorate (S&T) partnered with the Israel National Cyber Directorate (INCD) to initiate the Israel-US Binational Industrial Research and Development (BIRD) Cyber program. It is a joint initiative managed by the BIRD Foundation to enhance the cyber resilience of critical infrastructure in the United States and Israel.
• According to the Israel National Cyber Directorate (INCD), in 2021, the Israeli cyber industry raised USD 8.8 billion in more than 100 different deals thrice from the previous year. Also, four Israeli cyber security IPOs occurred, with 11 new Israeli entrances into the prestigious Unicorn club, with a valuation of over USD 1 billion. The data provided by the INCD also indicated that one of every three cyber security unicorns in the world is an Israeli company. This reflects the strong and highly competitive nature of the Israeli cybersecurity industry.
• Furthermore, the INCD reported that 40 Israeli companies were acquired in deals totaling USD 3.5 billion, with 40% of private global investments in cyber funding grounds in Israel. Private companies have been actively undertaking strategic acquisitions to strengthen their portfolio. In September 2022, Palo Alto Networks announced a deal to acquire the Israeli cybersecurity startup Apiiro for around USD 600 million.
• However, the lack of skilled cybersecurity professionals continues to be a significant challenge to complement the industry's strong growth. According to the Fortinet 2022 Cybersecurity Skills Gap Global Research Report, 47% of Israeli cybersecurity leaders show concern and believe that skills shortages pose additional risks to their organization, and 80% show significant concerns about talent retention.
• The COVID-19 pandemic introduced or expanded companies' work-from-home and hybrid working models, creating a significant demand for cybersecurity for accompanying network vulnerabilities. This also attracted several startups and new businesses to meet the demand, resulting in a considerable inflow of investments in Israeli cybersecurity.

Israel Cybersecurity Industry Segmentation

Cybersecurity refers to securing the services, products, and systems connected intra- and internet within or outside an organization. These services facilitate the end-to-end secure transfer of data and sensitive information, safeguarding the customers' interests from any potential cyber attack or threat. These include several solutions the companies offer for on-premise and cloud deployment of security products and services. The Israeli cybersecurity market is segmented by offering (security type (cloud security, data security, identity access management, network security, consumer security, infrastructure protection, other security types) and services), by deployment (cloud and on-premise), and by end user (BFSI, healthcare, manufacturing, government and defense, IT and telecommunication, other end users).

The market sizes and forecasts are provided in terms of value in USD million for all the above segments.