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Israel Information Technology Report Q2 2015

84 Pages BMI Research February 11, 2015 SKU: BMI5466948

Israel Information Technology Report Q2 2015

BMI View: Israel's vibrant ICT start-up community and highly skilled tech workers have attracted recordbreaking investment to the high-tech sector in 2014. While the available pool of skilled workers willeventually dwindle, investment will remain high in 2015 as Chinese ICT firms begin competing for talentwith their Western counterparts. However, because of the comparatively high penetration of IT productsand services, as well as its small population, Israel's IT market is expected to grow more slowly than mostothers in the region. Given Israel's geopolitical location and the uptick in violence in the region in 2014, weexpect spending on cyber security to be a key driver of growth in Israel's IT market, chiming with our viewthat software and services will increase as a proportion of IT spend to account for more than 66% of themarket by 2019.

Headline Expenditure Projections

Computer Hardware Sales: Forecast to reach ILS9.4bn in 2015, up from ILS9.225bn in 2014. We expectgrowth to accelerate in 2015, driven by the full launch of 4G mobile networks and ongoing migration to theWindows 8 OS.

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Israel Information Technology Report Q2 2015

BMI Research
February 11, 2015

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