Israel: Trailblazing the way to cyber security innovation


The global increase of cyber interconnectivity between people, things and organizations, has naturally led to our dependency on cyber security.

Israel, one of the world’s cyber security superpowers, continues to grow and trailblaze the way to a more secure world, promising effective new technologies to help combat arising obstacles. The industry’s growth rate offers perspective on the strength of emergent technology markets.

In this report, you will find in-depth information and statistics to help you better understand Israel’s unique cyber security landscape and why it’s time to connect with Israel’s cyber security industry.


Snapshot of Israeli Cyber Security Companies in 2018

421                             213                            118

Active companies            Non-active                       Acquired

49% of Israel’s total number of cyber companies were established in the past 6 years

The 3 Pillars of Israeli Cyber Success

Israel’s unique ecosystem continues to combine unparalleled military, academic, and industrial knowledge and expertise. Highly trained human capital is produced by the military and is funneled into the cyber workforce. This outstanding workforce produces pioneering research and insights, ultimately driving leading global companies to set up R&D centers in Israel and promoting young elite veterans to develop their most innovative cyber security ideas.

Israel’s cyber eco-system success is built on three pillars:

1. Highly trained human capital

The IDF (Israel Defense Forces) acts as a national incubator, fostering the growth of outstanding engineers

2. Pioneering academic research

Advanced cyber research is taking place by world-renowned Israeli researchers in cooperation with globally renowned academic institutions

3. Vibrant innovation

Long-known as a world-leading innovative community, prominent technological companies flock to Israel to establish R&D centers

What are cyber security’s 3 most popular niches in Israel?

Data Protection 15% of all cyber companies

  • Knowledge brought by Israel’s military tech units and leveraged in the Israeli cyber fieldre

Network Security 9% of all cyber companies

  • Its share is a result of Check Point’s success and the knowledge hub it has created

Cyber Intelligence 7% of all cyber companies

  • Taps into knowledge gained by the military. Its popularity is much higher in Israel than in other countries



There’s no shortage of money in the Israeli security cyber space.

Instead these are the challenges:

  • Optimizing the allocation of capital
  • When “big money” is required, Israeli cyber companies must search for it abroad
  • Venture capitalists tend to invest in trending technologies. This creates fierce competition as each portfolio company chooses to operate within the same trend.

Did you know?

The total revenue of private companies in the Israeli cyber market is estimated at $500-600 million of the $5-6 billion Israeli cyber market (2017-2018).

Source: MarketsandMarkets

A Snapshot of Israel’s Private Cyber Security Companies

Israeli Cyber Security Exports

27 companies

  • Revenue growth stage
  • Up to $1M in sales annually
  • 7% of all companies

165 companies

  • Early stage
  • Annual Sales of $10M+
  • 40% of all companies

218 companies

  • Initial Revenues
  • Annual sales in tens of millions
  • 53% of companies

Israel’s cyber security exports totaled between $5.5-$6 billion in 2017 and was expected to grow in 2018.

  • Total revenue of public Israeli companies reached close to $3 billion in 2017:

Checkpoint, CyberArk, Varonis, Forescout and Imperva*

  • Total revenue of Israeli companies that supply cyber and cyber-related products and services reached $1 billion:

Allot, Radware, Verint, Nice, Elbit, Israel Aerospace [Elta] and Rafael*

  • Overall value to Israel’s GDP from Israeli employees at foreign cyber R&D centers was assessed at approximately $0.9 billion in 2017:

Microsoft, IBM, EMC-RSA, Palto-Alto, Symantec*

* Partial list

Israel’s Most Globally Dominant Cyber Security Niches

Cloud Security


Risk and Posture

Data Protection

Identity Management

Global Spending on Israeli Cyber Solutions

U.S. vs. European spending


  • 4.3% – identity access management
  • 18% – network security
  • 34.5% – data security


  • 4.4% – identity access management
  • 27% – network security
  • 17% – data security


Israel’s cyber security industry has more than 420 active companies, almost $6 billion in sales and exports, and attracts an impressive percentage of the world’s global spending on cyber security.

And while funding for cyber-focused companies is relatively available, connections with overseas foreign investors and potential customers is crucial for the sustainability of the industry, since Israel’s cyber technologies are ultimately produced for the global market.