Israeli cyber industry report - main findings (2013 - 2018) 2 September 2019
Israeli Missions Around The World MFA Innovative Israel Science and Technology Israeli cyber industry report - main findings (2013 - 2018) 2 September 2019

Israeli cyber industry report - main findings (2013 - 2018)

  • 9/2/2019
    •    
    The Israel Cyber Directorate has issued a report of the main findings of the status of Israeli’s cyber industry between the years 2013-2018
  •  
     
    ​(Communicated by the Israel Cyber Directorate Spokesperson)

    Israel Cyber Directorate recently issued the following report on the current status of the cyber industry in Israel:

    • At the end of 2018, Israel has 752 cyber companies of which 421 are active, 213 have ceased to operate, and 118 have been acquired. Of the newly established companies in the last decade, 367 new companies joined the Israeli pool of cyber companies between 2013 and 2018 (with most of them still active). These new companies, accounting for nearly 49% of the total of cyber companies, emphasize the change in the industry during the last years.

    • The data protection vertical (with a 15% share) reflects the knowledge brought to the Cyber sector by veterans of Israel’s army tech units, which is then leveraged to a large part of the activity in the Israeli cyber field. Another stand out that also taps knowledge from military service is cyber intelligence, with 7% of the total, a much higher portion than in other countries.  

    • At the end of 2018, the cyber industry in Israel was estimated to have approximately 20.5K workers, half of whom work for private companies (start-ups). 

    • Capital raising activity in the cyber security realm increased significantly between 2013 and 2018. The total sum of funding was $3.9 billion during this period with 501 funding rounds.

    • The total revenue of private companies (start-ups) in the Israeli cyber market is estimated to be between $500–600 million for 2017–2018.

    • Total revenue of public Israeli companies that operate in the cyber industry was close to $3 billion in 2017

    • Estimated export activity in the Israeli cyber industry is between $5.5–$6 billion (in 2017[1]) and takes into consideration 4 groups of companies: public companies; Israeli cyber related companies; foreign cyber R&D centers; and private companies (start-ups).

    • Output of Israeli cyber-related companies—companies that operate in related fields and have cyber solutions—is assessed at $1 billion (and include mainly: Allot, Radware, Verint, Nice, Elbit, Israel Aerospace [Elta], and Rafael).

    • Overall, the value to Israel’s GDP from Israeli employees at foreign cyber R&D centers is assessed at approximately $0.9 billion during 2017.
      ​
    • The overall amount from sales was between $500–550 million in 2017.

    • Israeli activity accounted for 18% of network security spending in the US, 34.5% of the data security (including Varonis and Imperva) spending, and 4.3% of identity access management spending (including CyberArk).

     
  •