2013-12-14 10:14:03 - Fast Market Research recommends "Israel Information Technology Report Q1 2014" from Business Monitor International, now available
Israel's IT market is the most developed in the Middle East with a well developed ecosystem of major global investors, start-ups and universities engaged in cutting edge research. These features compensate for the relatively small and mature market that means growth rates are below those of many other MEA markets. We estimate IT spending reached ILS22.6bn in 2013, with relatively stronger growth in software and services. We believe IT spending will remain on a positive trajectory in 2014 and over the medium term. The market will increasingly be driven by software and services in key sectors such as government, defence and financial services - resulting in IT services accounting for 36.4% of the overall market spending by 2017.
Full Report Details
- www.fastmr.com/prod/752035_israel_information_technology_report_ ..
Headline Expenditure Projections
Computer Hardware Sales: ILS9.56bn in 2012 to ILS9.55bn in 2013, down 0.1% in local currency terms. Slow growth in incomes has dampened demand in the retail market, but this has been partially compensated for by Israeli businesses investing more to facilitate expansion.
Software Sales: ILS5.0bn in 2012 to ILS5.1bn in 2013, an increase of 2.3% y-o-y. Enterprise software spending will be the main growth driver as device and data proliferation will result in increased spending on customer relationship management (CRM), databases and business intelligence.
IT Services Sales: We expect IT services sales will outperform the rest of the IT market, increasing from ILS7.73bn in 2012 to ILS7.90bnin 2013. Cyber security services will outperform in terms of growth, but it will be stable sectors such as government and defence that continue to account for the majority of spending.
Key Trends & Developments
* The PC market in Israel has been negatively impacted by the weak economic environment and the shift in consumption to tablets. Notebook volumes have declined as consumers opt for relatively cheap tablets, helping to sustain volumes, but squeezing market value. These trends will continue to squeeze the market but we identify medium term opportunities unlocked by the launch of Windows 8 operating system and the potential for innovation in multi-use hybrid/convertibles to blend productivity and consumption use cases.
* The IT services market is expected to outperform software and hardware - with demand for cloud computing, outsourcing and security services driving growth. Cyber security threats have become more prominent in the consciences of government and enterprises, and we expect spending to increase markedly over the short-to-medium term. Meanwhile, banking and retail will be key verticals driving the growth of the cloud computing market as they seek cost savings, and look to increase flexibility.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Business Environment
- IT Market
- Table: Israel IT Industry - Historical Data And Forecasts (ILSmn)
- Economic Analysis
- Table: Israel - Economic Activity
Industry Risk Reward Ratings
- Table: MEA IT RRR - Q1 2014
Industry Trends And Developments
- Table: IT Regulatory Authorities
- Table: Government Initiatives
- International Companies
- Table: Intel
- Local Companies
- Table: Amdocs
- Table: Check Point
- Table: Imperva
- Demographic Outlook
- 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/Urban Population Split, 1990-2020
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
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