Israel Cybersecurity and SOC Market

Israel Cybersecurity and SOC Market is worth USD 1 Bn, fueled by sophisticated threats, cloud adoption, and government strategies like the 2025-2028 National Cybersecurity Framework.

Region:Middle East

Author(s):Dev

Product Code:KRAA3507

Pages:94

Published On:September 2025

About the Report

Base Year 2024

Israel Cybersecurity and SOC Market Overview

  • The Israel Cybersecurity and SOC Market is valued at USD 1 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing frequency and sophistication of cyber threats, rapid digital transformation across sectors, and heightened regulatory compliance requirements. The market is characterized by robust demand for advanced security solutions, including threat intelligence, managed security services, and cloud security as organizations prioritize safeguarding their digital assets and critical infrastructure .
  • Key players in this market includeTel Aviv, Herzliya, and Ra'anana, which dominate due to their concentration of technology firms, research institutions, and venture capital investments. The presence of a highly skilled workforce, strong ties to military cyber units, and a collaborative ecosystem among startups and established companies further enhances the region's attractiveness for cybersecurity innovation and development .
  • TheNational Cybersecurity Strategy 2025–2028, issued by the Israel National Cyber Directorate in early 2025, sets a comprehensive framework for enhancing national cyber resilience. The strategy emphasizes strengthening public-private partnerships, expanding cyber capacity, advancing R&D, and promoting cybersecurity education and awareness. It mandates robust defense of critical infrastructure, real-time threat information sharing, and the development of skilled cyber talent across sectors .
Israel Cybersecurity and SOC Market Size

Israel Cybersecurity and SOC Market Segmentation

By Type:The market is segmented into Network Security, Application Security, Endpoint Security, Cloud Security, Identity and Access Management, Data Security, Email and Content Security, OT/IoT and Automotive Security, Threat Intelligence, and Others.Network Securityremains the leading sub-segment, driven by the persistent need to protect organizational networks from increasingly sophisticated cyberattacks and unauthorized access. The surge in remote work, cloud adoption, and the proliferation of connected devices have further fueled demand for robust network security and next-generation threat detection solutions .

Israel Cybersecurity and SOC Market segmentation by Type.

By End-User:This segmentation includes Government and Public Sector, Defense and Homeland Security, Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences, Retail and E-commerce, IT & Telecommunications, Manufacturing & Industrial, Energy & Utilities, Education & Research, and Others. TheBFSI sectoris the dominant end-user, driven by stringent regulatory requirements and the need for robust security measures to protect sensitive financial data. The increasing digitization of banking services, adoption of cloud platforms, and evolving threat landscape have further amplified the demand for advanced cybersecurity solutions in this sector .

Israel Cybersecurity and SOC Market segmentation by End-User.

Israel Cybersecurity and SOC Market Competitive Landscape

The Israel Cybersecurity and SOC Market is characterized by a dynamic mix of regional and international players. Leading participants such as Check Point Software Technologies Ltd., CyberArk Software Ltd., Radware Ltd., Palo Alto Networks, Inc., Fortinet, Inc., Imperva, Inc., SentinelOne, Inc., NSO Group Technologies Ltd., Snyk Ltd., Aqua Security Software Ltd., Cybereason, Inc., Votiro Technologies Ltd., Cato Networks, Inc., Argus Cyber Security Ltd., Morphisec Ltd., Perimeter 81 Ltd., Cyberint Technologies Ltd., Claroty Ltd., Illusive Networks Ltd., Sygnia Consulting Ltd. contribute to innovation, geographic expansion, and service delivery in this space .

Check Point Software Technologies Ltd.

1993

Tel Aviv, Israel

CyberArk Software Ltd.

1999

Petah Tikva, Israel

Radware Ltd.

2000

Tel Aviv, Israel

Palo Alto Networks, Inc.

2005

Santa Clara, California, USA

Fortinet, Inc.

2000

Sunnyvale, California, USA

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (YoY %)

Market Share (%)

Number of Active Customers

Customer Acquisition Cost (CAC)

Customer Retention Rate (%)

Israel Cybersecurity and SOC Market Industry Analysis

Growth Drivers

  • Increasing Cyber Threats:The Israel cybersecurity market is driven by a significant rise in cyber threats, with over 1,000 reported incidents in future, according to the Israeli National Cyber Directorate. The economic impact of cybercrime in Israel is estimated to reach $6 billion in future, highlighting the urgent need for robust cybersecurity measures. This escalating threat landscape compels organizations to invest heavily in advanced security solutions, thereby propelling market growth.
  • Government Initiatives and Funding:The Israeli government has allocated approximately $1.5 billion for cybersecurity initiatives in future, aiming to bolster national security and support the cybersecurity sector. This funding is directed towards research and development, enhancing public-private partnerships, and fostering innovation. Such initiatives not only strengthen the national cybersecurity posture but also stimulate market growth by encouraging startups and established firms to develop cutting-edge solutions.
  • Rising Demand for Cloud Security Solutions:With cloud adoption rates soaring to 90% among Israeli enterprises in future, the demand for cloud security solutions is at an all-time high. The cloud security market in Israel is projected to reach $500 million, driven by the need to protect sensitive data and comply with stringent regulations. This trend is further fueled by the increasing reliance on remote work and digital transformation, necessitating enhanced security measures for cloud environments.

Market Challenges

  • Talent Shortage in Cybersecurity:The cybersecurity sector in Israel faces a critical talent shortage, with an estimated gap of 15,000 skilled professionals in future. This shortage hampers the ability of organizations to effectively implement and manage cybersecurity measures. The high demand for cybersecurity expertise, coupled with limited educational resources, poses a significant challenge for companies seeking to enhance their security capabilities and protect against evolving threats.
  • High Costs of Cybersecurity Solutions:The financial burden of implementing comprehensive cybersecurity solutions is a major challenge for many organizations in Israel. The average annual expenditure on cybersecurity per enterprise is projected to exceed $200,000 in future. This high cost can deter smaller businesses from investing in necessary security measures, leaving them vulnerable to cyber threats and potentially stifling overall market growth in the sector.

Israel Cybersecurity and SOC Market Future Outlook

The future of the Israel cybersecurity market appears promising, driven by ongoing technological advancements and increasing awareness of cyber threats. As organizations continue to adopt innovative security solutions, the integration of artificial intelligence and machine learning will play a pivotal role in enhancing threat detection and response capabilities. Additionally, the shift towards zero trust security models will redefine security frameworks, ensuring that organizations remain resilient against emerging cyber threats while complying with evolving regulations.

Market Opportunities

  • Expansion of Managed Security Services:The managed security services market in Israel is expected to grow significantly, with an estimated value of $300 million in future. This growth presents opportunities for service providers to offer comprehensive security solutions, allowing organizations to focus on core business functions while ensuring robust protection against cyber threats.
  • Development of AI-Driven Security Solutions:The increasing reliance on AI technologies in cybersecurity presents a lucrative opportunity for innovation. The market for AI-driven security solutions is projected to reach $200 million in future, driven by the need for advanced threat detection and automated response capabilities. This trend will enable organizations to enhance their security posture and effectively combat sophisticated cyber threats.

Scope of the Report

SegmentSub-Segments
By Type

Network Security

Application Security

Endpoint Security

Cloud Security

Identity and Access Management

Data Security

Email and Content Security

OT/IoT and Automotive Security

Threat Intelligence

Others

By End-User

Government and Public Sector

Defense and Homeland Security

Banking, Financial Services and Insurance (BFSI)

Healthcare and Life Sciences

Retail and E-commerce

IT & Telecommunications

Manufacturing & Industrial

Energy & Utilities

Education & Research

Others

By Deployment Mode

On-Premises

Cloud-Based

Hybrid

By Service Type

Managed Security Services

Consulting Services

Integration Services

Professional Services

Others

By Industry Vertical

BFSI

Government

Energy and Utilities

Education

Healthcare

IT & Telecom

Manufacturing

Retail

Others

By Security Type

Threat Intelligence

Incident Response

Vulnerability Management

Data Loss Prevention

Identity and Privileged Access Management

By Policy Support

Subsidies

Tax Exemptions

Grants

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Israel National Cyber Directorate, Ministry of Defense)

Cybersecurity Solution Providers

Telecommunications Companies

Financial Institutions

Healthcare Organizations

Critical Infrastructure Operators

Defense Contractors

Players Mentioned in the Report:

Check Point Software Technologies Ltd.

CyberArk Software Ltd.

Radware Ltd.

Palo Alto Networks, Inc.

Fortinet, Inc.

Imperva, Inc.

SentinelOne, Inc.

NSO Group Technologies Ltd.

Snyk Ltd.

Aqua Security Software Ltd.

Cybereason, Inc.

Votiro Technologies Ltd.

Cato Networks, Inc.

Argus Cyber Security Ltd.

Morphisec Ltd.

Perimeter 81 Ltd.

Cyberint Technologies Ltd.

Claroty Ltd.

Illusive Networks Ltd.

Sygnia Consulting Ltd.

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Israel Cybersecurity and SOC Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Israel Cybersecurity and SOC Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Israel Cybersecurity and SOC Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Cyber Threats
3.1.2 Government Initiatives and Funding
3.1.3 Rising Demand for Cloud Security Solutions
3.1.4 Growth of IoT and Connected Devices

3.2 Market Challenges

3.2.1 Talent Shortage in Cybersecurity
3.2.2 High Costs of Cybersecurity Solutions
3.2.3 Rapidly Evolving Threat Landscape
3.2.4 Regulatory Compliance Complexity

3.3 Market Opportunities

3.3.1 Expansion of Managed Security Services
3.3.2 Development of AI-Driven Security Solutions
3.3.3 Increased Investment in Cybersecurity Startups
3.3.4 Growing Awareness of Cybersecurity Importance

3.4 Market Trends

3.4.1 Shift Towards Zero Trust Security Models
3.4.2 Integration of AI and Machine Learning
3.4.3 Rise of Cyber Insurance
3.4.4 Focus on Data Privacy Regulations

3.5 Government Regulation

3.5.1 National Cybersecurity Policy
3.5.2 Data Protection Regulations
3.5.3 Cybersecurity Compliance Frameworks
3.5.4 Incentives for Cybersecurity Investments

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Israel Cybersecurity and SOC Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Israel Cybersecurity and SOC Market Segmentation

8.1 By Type

8.1.1 Network Security
8.1.2 Application Security
8.1.3 Endpoint Security
8.1.4 Cloud Security
8.1.5 Identity and Access Management
8.1.6 Data Security
8.1.7 Email and Content Security
8.1.8 OT/IoT and Automotive Security
8.1.9 Threat Intelligence
8.1.10 Others

8.2 By End-User

8.2.1 Government and Public Sector
8.2.2 Defense and Homeland Security
8.2.3 Banking, Financial Services and Insurance (BFSI)
8.2.4 Healthcare and Life Sciences
8.2.5 Retail and E-commerce
8.2.6 IT & Telecommunications
8.2.7 Manufacturing & Industrial
8.2.8 Energy & Utilities
8.2.9 Education & Research
8.2.10 Others

8.3 By Deployment Mode

8.3.1 On-Premises
8.3.2 Cloud-Based
8.3.3 Hybrid

8.4 By Service Type

8.4.1 Managed Security Services
8.4.2 Consulting Services
8.4.3 Integration Services
8.4.4 Professional Services
8.4.5 Others

8.5 By Industry Vertical

8.5.1 BFSI
8.5.2 Government
8.5.3 Energy and Utilities
8.5.4 Education
8.5.5 Healthcare
8.5.6 IT & Telecom
8.5.7 Manufacturing
8.5.8 Retail
8.5.9 Others

8.6 By Security Type

8.6.1 Threat Intelligence
8.6.2 Incident Response
8.6.3 Vulnerability Management
8.6.4 Data Loss Prevention
8.6.5 Identity and Privileged Access Management

8.7 By Policy Support

8.7.1 Subsidies
8.7.2 Tax Exemptions
8.7.3 Grants

9. Israel Cybersecurity and SOC Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (YoY %)
9.2.4 Market Share (%)
9.2.5 Number of Active Customers
9.2.6 Customer Acquisition Cost (CAC)
9.2.7 Customer Retention Rate (%)
9.2.8 Market Penetration Rate (%)
9.2.9 Average Deal Size (USD)
9.2.10 R&D Investment as % of Revenue
9.2.11 Service Level Agreement (SLA) Compliance (%)
9.2.12 Time to Detect and Respond (hours)
9.2.13 Brand Recognition Score
9.2.14 Number of Patents/Unique Technologies
9.2.15 Employee Headcount (Israel-based)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Check Point Software Technologies Ltd.
9.5.2 CyberArk Software Ltd.
9.5.3 Radware Ltd.
9.5.4 Palo Alto Networks, Inc.
9.5.5 Fortinet, Inc.
9.5.6 Imperva, Inc.
9.5.7 SentinelOne, Inc.
9.5.8 NSO Group Technologies Ltd.
9.5.9 Snyk Ltd.
9.5.10 Aqua Security Software Ltd.
9.5.11 Cybereason, Inc.
9.5.12 Votiro Technologies Ltd.
9.5.13 Cato Networks, Inc.
9.5.14 Argus Cyber Security Ltd.
9.5.15 Morphisec Ltd.
9.5.16 Perimeter 81 Ltd.
9.5.17 Cyberint Technologies Ltd.
9.5.18 Claroty Ltd.
9.5.19 Illusive Networks Ltd.
9.5.20 Sygnia Consulting Ltd.

10. Israel Cybersecurity and SOC Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Defense
10.1.2 Ministry of Finance
10.1.3 Ministry of Health

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 IT Infrastructure Investments
10.2.2 Cybersecurity Training Budgets
10.2.3 Security Software Purchases

10.3 Pain Point Analysis by End-User Category

10.3.1 Data Breaches
10.3.2 Compliance Issues
10.3.3 Resource Limitations

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Training Needs
10.4.3 Technology Adoption Rates

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Cost Savings from Prevention
10.5.2 Increased Operational Efficiency
10.5.3 Expansion of Security Use Cases

11. Israel Cybersecurity and SOC Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Customer Segmentation

1.5 Key Partnerships

1.6 Cost Structure Analysis

1.7 Competitive Advantage


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Communication Channels

2.5 Marketing Budget Allocation


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Online Distribution Channels

3.4 Direct Sales Approaches


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Comparison


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments

5.3 Emerging Trends


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Unique Selling Points


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from cybersecurity associations and government publications
  • Review of market trends and forecasts from leading cybersecurity research firms
  • Examination of white papers and case studies from Israeli cybersecurity startups and established firms

Primary Research

  • Interviews with cybersecurity experts and analysts in Israel's tech ecosystem
  • Surveys targeting SOC managers and cybersecurity practitioners across various sectors
  • Focus groups with stakeholders from government and private sectors involved in cybersecurity initiatives

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including academic publications and industry news
  • Triangulation of insights from expert interviews with quantitative data from market reports
  • Sanity checks through peer reviews and feedback from industry panels

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national cybersecurity spending and growth rates
  • Segmentation of the market by service type, including managed security services and incident response
  • Incorporation of government cybersecurity initiatives and funding into market projections

Bottom-up Modeling

  • Data collection from leading SOCs regarding service offerings and pricing structures
  • Estimation of market share based on firm-level revenue and operational metrics
  • Volume and pricing analysis for cybersecurity services provided to various sectors

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as cyber threat landscape and regulatory changes
  • Scenario modeling based on potential shifts in technology adoption and market demand
  • Development of baseline, optimistic, and pessimistic forecasts through 2028

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Managed Security Services60Service Managers, Cybersecurity Analysts
Incident Response Services50Incident Response Team Leaders, SOC Managers
Threat Intelligence Solutions40Threat Analysts, Intelligence Officers
Compliance and Risk Management45Compliance Officers, Risk Management Directors
Cybersecurity Training Programs55Training Coordinators, HR Managers in Tech Firms

Frequently Asked Questions

What is the current value of the Israel Cybersecurity and SOC Market?

The Israel Cybersecurity and SOC Market is valued at approximately USD 1 billion, reflecting significant growth driven by increasing cyber threats, digital transformation, and regulatory compliance requirements across various sectors.

What are the main drivers of growth in the Israel Cybersecurity market?

Which sectors are the largest consumers of cybersecurity solutions in Israel?

What are the main challenges facing the Israel Cybersecurity market?

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