Market Trends of Israel Digital Transformation Industry
Analytics, Artificial Intelligence, and Machine Learning Segment is Analyzed to Drive Market Growth
- Analytics, artificial intelligence, and machine learning are analyzed to drive the growth of the Israel digital transformation market. The country is home to many global and local AI companies that support the segment's growth. In addition, the expanding use of advanced technologies such as AI and ML in a wide range of industries across Israel is driving the growth of the segment.
- Further, according to Stanford University's Artificial Intelligence Index Report 2024, In 2023, Israel was ranked first globally among countries with the highest concentrations of AI talent, followed by Singapore and South Korea. According to the report, in 2023, the countries with the highest concentrations of AI talent included Israel (1.1%), Singapore (0.9%), and South Korea (0.8%).
- Additionally, AI startups are gaining significant funding from investors, indicating the growing AI ecosystem in the country. This will further support the growth of the segment in the Israel digital transformation market. In a notable development in July 2024, CytoReason, an Israeli firm specializing in AI-driven disease modeling, secured USD 80 million in a private funding round. Noteworthy participants included industry giants like Nvidia and Pfizer, alongside leading venture capital firm OurCrowd.
- Moreover, in May 2024, Ben-Gurion University of the Negev, Dovi Frances, and Shalev Hulio unveiled 'The Institute,' an AI initiative aimed at bolstering Israel's AI prowess across sectors like cybersecurity, healthcare, finance, and education. The initiative's primary goal is to solidify Israel's position as a leader in AI across key sectors: cybersecurity, healthcare, finance, and education. Such initiatives are further analyzed to bolster the demand for AI in end-user industries across the country, thus positively impacting the growth of the segment over the forecast period.
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IT and Telecom Segment is Analyzed to Witness Significant Traction
- The IT and telecom sector is undergoing significant digital transformation driven by the growing need among IT and telecom enterprises to enhance customer experience by adopting advanced technologies in business operations. Further, the growing penetration of the internet and smartphones in the country necessitates the adoption of advanced technologies in the country's telecom sector to fulfill the growing demand for internet connectivity.
- For instance, according to the data from GSMA Intelligence, there were 10.40 million cellular mobile connections in the country at the start of 2024. GSMA Intelligence's numbers show that mobile connections in Israel were equivalent to 112.5% of the total population in January 2024.
- Furthermore, the growing efforts for accelerated 5G rollouts in the country will necessitate the demand for various digital transformation technologies in the country's telecom sector over the forecast period. In addition, the burgeoning IT sector in the country is further fostering the growth of the market. Israel's IT, software, and internet expertise has strengthened its position in the global market. This has led to heightened interest in Israel's IT sector from major tech players worldwide.
- Notably, giants like HP, IBM, Microsoft, and Oracle have set up operational and manufacturing hubs in the nation. Furthermore, American firms view Israel as an ideal destination for establishing R&D centers. This growing presence of global IT vendors in the region positively drives the demand for advanced technologies in the country's IT and telecom sectors.
