Israel is the most advanced IT market in the Middle East, both in terms of retail and enterprisespending levels, and the ecosystem of vendors on the technological front. The market outlook is relativelystrong for a developed market due to supportive economic conditions and demographics. Moreover, thelocal industry has strong growth momentum, especially in knowledge intensive components and softwaresolutions.
Latest Updates & Industry Developments
IT hardware sales will increase from ILS5.4bn in 2017 to ILS5.7bn in 2021, corresponding with acompound annual growth rate (CAGR) of 1.3%. There is a squeeze in the PC market due to cases ofsmartphones cannibalising tablet use, but demographics, high-end enterprise and retail demand willprovide support.
Software sales will increase from ILS6.4bn in 2017 to ILS8.3bn in 2021, at a CAGR of 6.8%. Israel'ssophisticated business community will generate robust growth for data analytics solutions, while SMEdemand for less complex applications is another area of opportunity.