Overview of the ICT industry and ecosystem in Israel
Size of the market
The market size of the ICT (Information and Communications Technology) industry in Israel is difficult to determine with certainty, as there are varying estimates and sources of data. However, according to a report by the Israel Export and International Cooperation Institute, the ICT industry in Israel accounted for around 15% of the country's total exports in 2020, with a total of $46 billion in exports.
Israel is well known for its strong and innovative technology sector, particularly in the fields of cybersecurity, software development, and telecommunications. The country is home to many successful startups and established technology companies, and attracts significant investment from both domestic and international sources.
The COVID-19 pandemic has also led to an increased demand for digital technologies and services, which has further fueled growth in the ICT industry in Israel. Overall, the market size of the ICT industry in Israel is expected to continue to grow in the coming years, driven by ongoing innovation and strong demand for digital solutions.
The market size of the ICT (Information and Communications Technology) industry in Israel is difficult to determine with certainty, as there are varying estimates and sources of data. However, according to a report by the Israel Export and International Cooperation Institute, the ICT industry in Israel accounted for around 15% of the country's total exports in 2020, with a total of $46 billion in exports.
Israel is well known for its strong and innovative technology sector, particularly in the fields of cybersecurity, software development, and telecommunications. The country is home to many successful startups and established technology companies, and attracts significant investment from both domestic and international sources.
The COVID-19 pandemic has also led to an increased demand for digital technologies and services, which has further fueled growth in the ICT industry in Israel. Overall, the market size of the ICT industry in Israel is expected to continue to grow in the coming years, driven by ongoing innovation and strong demand for digital solutions.
ICT Market trends in Israel
Information and communication technology (ICT) developments in Israel were initially fueled by geopolitical needs. Defense is a major axis for the country's research and development (R&D) in the field of ICT.
As a result of this demand, related sectors such as security and encryption have benefited from significant resources contributing to the creation of a strong and recognized local ICT economy.
The political proximity to the United States has also strongly supported the sector and many American companies have been able to take advantage of a skilled and experienced workforce.
Today, Israel is recognized for its skills in cybersecurity, but not only the agricultural or medical sectors are also areas where IT investment is important.
The good level of education combined with a strong demand from the state in terms of security and innovation, place the country as a destination of choice for the R&D centers of many international companies.
The progressive opening of the country through bilateral agreements with the countries of the Middle East makes it possible to envisage a significant future development potential, however still subject to local geopolitical tensions.
Ecosystem Size
As of 2021, there were more than 6,000 active ICT companies in Israel, according to the Israel Export Institute. These companies cover a wide range of sectors within the broader field of information and communications technology, including software development, cybersecurity, hardware. A lot of these companies are small size companies.
compuBase estimates that the volume of ICT companies (Head Office) with more than 1 employees and 350 K€ revenue between 2200 and 2500.
Information and communication technology (ICT) developments in Israel were initially fueled by geopolitical needs. Defense is a major axis for the country's research and development (R&D) in the field of ICT.
As a result of this demand, related sectors such as security and encryption have benefited from significant resources contributing to the creation of a strong and recognized local ICT economy.
The political proximity to the United States has also strongly supported the sector and many American companies have been able to take advantage of a skilled and experienced workforce.
Today, Israel is recognized for its skills in cybersecurity, but not only the agricultural or medical sectors are also areas where IT investment is important.
The good level of education combined with a strong demand from the state in terms of security and innovation, place the country as a destination of choice for the R&D centers of many international companies.
The progressive opening of the country through bilateral agreements with the countries of the Middle East makes it possible to envisage a significant future development potential, however still subject to local geopolitical tensions.
Ecosystem Size
As of 2021, there were more than 6,000 active ICT companies in Israel, according to the Israel Export Institute. These companies cover a wide range of sectors within the broader field of information and communications technology, including software development, cybersecurity, hardware. A lot of these companies are small size companies.
compuBase estimates that the volume of ICT companies (Head Office) with more than 1 employees and 350 K€ revenue between 2200 and 2500.
The Israel ICT partner database

Database Israel - Click on any cell in the table to see the corresponding selection
FURTHER SOURCES OF INFORMATION
Some of the top ICT distributors in Israel
- Tech Data - Tech Data is a global technology distributor with a significant presence in Israel, offering a wide range of products and services to technology resellers, VARs, and system integrators.
- Ingram Micro - Ingram Micro is another global technology distributor with operations in Israel, offering a broad range of products and services in areas such as cloud computing, security, and networking.
- ASBIS - ASBIS is a leading distributor of IT and consumer electronics products in Israel and other markets, offering a wide range of technology products and services to resellers and system integrators.