2013-02-01 18:11:23 - Recently published research from Business Monitor International, "Israel Information Technology Report Q1 2013", is now available at Fast Market Research
BMI View: Israeli IT spending is expected to reach US$6.0bn in 2012, up 5%. In Q112, several indicators suggested moderating consumer demand, but vendors still reported a solid trading environment for IT services across industrial, government, defence and financial services segments. The current rate of PC penetration, while high for the region, represents potential for organic growth.
Household penetration is estimated at around 75%. The Israeli IT market should gain enough momentum from key sectors to expand at a CAGR of 7% over BMI's 2013-2017 forecast period, due to momentum from key segments.
Headline Expenditure Projections
Computer Hardware Sales: US$2.5bn in 2011 to US$2.6bn in 2012, +3% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors, but
Israeli businesses are investing more to facilitate expansion and development.
Full Report Details at
- www.fastmr.com/prod/529369_israel_information_technology_report_ ..
Software Sales: US$1.3bn in 2011 to US$1.3bn in 2012, +6% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but device and data proliferation will drive spending on customer relationship management (CRM), databases and business intelligence.
IT Services Sales: US$2.0bn in 2011 to US$2.1bn in 2012, +6% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification but key segments such as government and defence will be a continued source of opportunities.
Risk/Reward Ratings: Israel's IT rating score was 66.3 out of 100.0, up on the previous quarter. Israel has regained first place in our latest RRR table, ahead of both Qatar and the UAE.
Key Trends & Developments
* BMI forecasts overall solid growth for the Israeli IT market for 2012, despite a deteriorating external economic environment. Businesses will maintain a cautious attitude to IT investments due to uncertainty about a sustainable global economic recovery in key export markets. There should, however, be growth in areas such as business intelligence, server virtualisation, mobile devices and cloud computing.
* New cloud computing offerings and increased competition in this segment should fuel further demand from users. Particular areas of opportunity for cloud computing include banking and retailing as organisations in those fields look to save money on hardware investments. Businesses will, not only seek to make cost savings, but will look to boost efficiency and increase flexibility of response to customer needs.
* The growing emphasis of many multinational IT vendors on software and services revenues, has led companies such as Dell and SAP to direct more investment in R&D at the Israeli market. However, Israel's domestic IT service companies have strong advantages owing to local knowledge and contacts. For example, Ness Israel's long-term relationship with the Israeli Department of Defence makes it a strong player in the defence and homeland security vertical. Despite their global ambitions, Israel remains an important market for these companies and typically accounts for 40-50% of revenue.
Report Table of Contents:
- Israel IT Sector SWOT
- Israel Telecommunications Sector SWOT
- Israel Political SWOT
- Israel Economic SWOT
- Israel Business Environment SWOT
MEA IT Risk/Reward Ratings
- Table: Middle East And Africa IT Risk Reward Ratings, Q113
MEA IT Markets Overview
- IT Penetration
- Sectors And Verticals
- Government Authority
- Table: Government Initiatives
- Industry Developments
- Table: Israel IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017
Industry Forecast Internet
- Table: Internet Data And Forecasts, 2010-2017
- Internet Competitive Landscape
- Table: Israel - Economic Activity, 2011-2016
- Microsoft Corporation
- Table: Israel's Population By Age Group, 1990-2020 ('000)
- Table: Israel's Population By Age Group, 1990-2020 (% of total)
- Table: Israel's Key Population Ratios, 1990-2020
- Table: Israel's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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