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Israel ICT Market Size (2024 - 2029)

The Israel ICT market is experiencing significant growth, driven by an increasing focus on digital technologies, cybersecurity, artificial intelligence, robotics, and healthcare IT. The expansion of digitalization and scalable IT infrastructure, along with the widespread adoption of 5G networks and the presence of technology giants, are key factors contributing to the market's growth. Government initiatives to enhance the telecom sector and the minimal impact of the COVID-19 pandemic on digital transformation efforts further support this expansion. Emerging technologies such as robotic process automation, big data, and cloud computing are creating new opportunities, thereby influencing the market size positively.

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Market Size of Israel ICT Industry

Israel ICT Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 52.45 Billion
Market Size (2029) USD 61.90 Billion
CAGR (2024 - 2029) 3.37 %
Market Concentration Medium

Major Players

Israel ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order

Israel ICT Market Analysis

The Israel ICT Market size is estimated at USD 52.45 billion in 2024, and is expected to reach USD 61.90 billion by 2029, growing at a CAGR of 3.37% during the forecast period (2024-2029).

The growing emphasis on digital technology, cyber security, artificial intelligence, robotics, and healthcare IT in Israel is significantly driving the market's growth.

  • Moreover, the increasing demand to explore and adopt digital technologies and initiatives, the increase in the overall demand for digitalization and scalable IT infrastructure, the wide adoption of the 5G network, and the rising penetration of technology giants are boosting the growth of the ICT market significantly.
  • According to the IMF (International Monetary Fund), Israel's GDP is expected to grow to USD 678.59 billion by 2027. The county's GDP is growing significantly with increasing IT investments that would create new growth opportunities for the Israel ICT market.
  • Key players in the ICT market are taking initiatives to deploy 5G services in Israel. For Instance, Cellcom was awarded a 5G license from the Israel Ministry of Communication (MoC). Cellcom 5G network is deployed to provide 5G services for the location, including Ashdod, Haifa, Jerusalem, Netanya, Rishon LeZion, Petah Tikva, and Tel Aviv. The demand for deploying 5G services will significantly grow in the future with the growing number of IT tech parks.
  • Government authorities are working with private IT and telecom service providers to expand their telecom sector. For Instance, Israel's Ministry of Communications established a tentative outline to shut down 2G and 3G networks by the end of 2025.
  • The COVID-19 pandemic had minimal impact on the Israel ICT market. But during the COVID-19 lockdown digital transformation, companies realigned their IT strategies, automated processes, managed operational costs, and implemented new systems for better and improved efficiencies. In addition, emerging technologies such as robotic process automation, artificial intelligence, big data, machine learning, cloud computing, the internet of things, blockchain, cybersecurity, and augmented/virtual reality have helped to a great extent to accomplish these goals and create new growth opportunities for the ICT market.

Israel ICT Industry Segmentation

The Israel ICT market includes deep analysis of key technology investments such as cloud technologies and artificial intelligence.

The market is segmented by Type (Hardware, Software, IT Services, Telecommunication Services), Size of Enterprise (Small and Medium Enterprises, Large Enterprises), and End-user Vertical (BFSI, IT & Telecom, Government, Retail and E-Commerce, Manufacturing, Energy and Utilities). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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

By Type
Hardware
Software
IT Services
Telecommunication Services
By Size of Enterprise
Small and Medium Enterprises
Large Enterprises
By Industry Vertical
BFSI
IT and Telecom
Government
Retail and E-commerce
Manufacturing
Energy and Utilities
Other Industry Verticals
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Israel ICT Market Size Summary

The Israel ICT market is experiencing a robust expansion, driven by a strong focus on digital technologies, cybersecurity, artificial intelligence, robotics, and healthcare IT. The market's growth is further propelled by the increasing demand for digital transformation, scalable IT infrastructure, and the widespread adoption of 5G networks. The presence of technology giants and significant IT investments are creating new opportunities, with government initiatives supporting the development of advanced technologies like AI, IoT, and big data. The COVID-19 pandemic has minimally impacted the market, as it accelerated digital transformation efforts across various sectors, enhancing efficiencies through emerging technologies such as cloud computing, machine learning, and blockchain.

The market is characterized by moderate competition, with key players like IBM, Google, Microsoft, and Oracle actively investing in cloud services and infrastructure. The government's collaboration with private IT and telecom providers aims to expand the telecom sector, including the transition to 4G and 5G networks. The increasing smartphone adoption and rising broadband service penetration are boosting demand for ICT products and services. Notable developments include Google's activation of a local cloud region and IBM's acquisition of Databand.ai, both contributing to the market's growth trajectory. These advancements, alongside infrastructure investments and training programs, are expected to further enhance the Israel ICT market's landscape.

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Israel ICT Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hardware

      2. 2.1.2 Software

      3. 2.1.3 IT Services

      4. 2.1.4 Telecommunication Services

    2. 2.2 By Size of Enterprise

      1. 2.2.1 Small and Medium Enterprises

      2. 2.2.2 Large Enterprises

    3. 2.3 By Industry Vertical

      1. 2.3.1 BFSI

      2. 2.3.2 IT and Telecom

      3. 2.3.3 Government

      4. 2.3.4 Retail and E-commerce

      5. 2.3.5 Manufacturing

      6. 2.3.6 Energy and Utilities

      7. 2.3.7 Other Industry Verticals

Israel ICT Market Size FAQs

The Israel ICT Market size is expected to reach USD 52.45 billion in 2024 and grow at a CAGR of 3.37% to reach USD 61.90 billion by 2029.

In 2024, the Israel ICT Market size is expected to reach USD 52.45 billion.

Israel ICT Market Report Snapshots

Israel ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)