Cybersecurity spending worldwide has been growing steadily in the last few years. It is estimated that the market's total revenue will reach 162 billion USD by the end of 2023.
Although Israel is not one of the world’s leaders in the cybersecurity market per volume, it is a strong player in professionality, innovation, and emerging technologies.
Israel has already shown the country’s serious attitude to security, showcasing record numbers in cyber funding. Yet, the shifts in the world's politics, the war in Ukraine, the threat of a military conflict with Iran, and other tensions have added attention to the cyber sector.
In Israel, the total yearly investments in the cybersecurity market have grown since 2015 to reach 3.5 billion US dollars last year. This was caused by the need to fortify the existing defense system in the face of potential threats and the need for cooperation between the world's leading cybersecurity firms.
Israel is a powerful exporter of cybersecurity services to different countries. According to forecasts, the government will only assert itself as a market leader in the coming years. According to the estimates, Israel’s cyber security revenue is projected to grow uninterruptedly from 0.78 billion US dollars in 2022 to 1.43 billion US dollars by 2028.
The country outsources cyber security services to numerous countries in the world. For example, Australia imports about 20% of its digital defense services from Israel. Other partnerships include contracts with the IMF and the United States.
The growing number of cybersecurity unicorns also boosts Israel's success. According to TechCrunch's yearly report, 2020 was a record year for Israel in terms of investment into cybersecurity startups that collected unprecedented 2.75 billion US dollars. Yet, in 2021, the country’s security market went even bigger hitting an 8.84 billion investment margin. Israel became home to almost a third of all cybersecurity unicorns worldwide. In 2023, these companies receive new opportunities for cooperation and investment.
According to Assaf Hefetz, co-founder of Snyk, ”As threats abound and with skyrocketing demand for innovative solutions, Israeli cybersecurity startups now have an invaluable opportunity to grow big and grow fast.”
And the most significant market players are using the moment to the fullest. For example, Check Point, one of the most influential tech companies in Israel, has developed AI-based tools for countering Gen V security attacks, which have the potential to attack numerous targets across all geographical regions quickly. Another country's giant, Radware, has developed a vast cloud security platform, outsourcing services to EMEA and Asia Pacific regions. CyberArk, a cybersecurity giant with a market capitalization of 6.4 billion US dollars, has launched the C3 Alliance – an organization of cybersecurity partners working together on new solutions. The Alliance accounts for over 100 members, including Amazon Web Services, McAfee, and Check Point.
Yet, the fast growth is achieved through the ability to build a solid cooperative network primarily based on outsourcing cybersecurity services. Numerous companies worldwide, like MLSDev - offshore development team practice outsourcing to other countries to evenly distribute access to the best digital safety technologies in the world.
With strong partnerships, growing investment, and technical excellence, Israel has all the chances to become the world’s next leader in the field of cybersecurity.
Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.