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Web Hosting - Israel

Israel
  • The Web Hosting market in Israel is expected to experience significant growth in revenue.
  • By 2025, it is projected to reach US$1.07bn.
  • This growth is further expected to continue with an annual growth rate, also known as the Compound Annual Growth Rate (CAGR), of 13.66% from 2025 to 2030.
  • Consequently, the market volume is estimated to reach US$2.04bn by the end of 2030.
  • When it comes to the average Spend per Employee in the Web Hosting market, it is anticipated to reach US$226.91 in 2025.
  • This figure reflects the amount of money spent per employee within this sector.
  • In a global context, it is worth noting that United States is expected to generate the highest revenue in the Web Hosting market.
  • In 2025, it is projected to reach an impressive US$73.71bn.
  • This highlights the dominance of the United States in this industry.
  • Israel's web hosting market is experiencing rapid growth, driven by a highly skilled workforce and innovative technological advancements.

Revenue

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jun 2025

Source: Statista Market Insights

Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

Most recent update: Apr 2024

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jun 2025

Source: Statista Market Insights

Analyst Opinion

Israel, a small country in the Middle East, is known for its thriving technology sector, with many startups and established companies in the field of software development, cybersecurity, and artificial intelligence. The web hosting market in Israel is also developing rapidly, driven by various factors.

Customer preferences:
Israeli customers in the web hosting market tend to prioritize reliability and security over pricing. As many Israeli businesses rely heavily on their online presence, they require web hosting services that can ensure their websites are always up and running, and their data is secure from cyber threats. Additionally, Israeli customers prefer local web hosting providers that can offer personalized support and understand their specific needs.

Trends in the market:
One of the main trends in the Israeli web hosting market is the adoption of cloud hosting services. Many Israeli businesses are transitioning from traditional hosting solutions to cloud-based hosting, as it offers greater flexibility, scalability, and cost-effectiveness. Another trend is the increasing demand for managed hosting services, where the web hosting provider takes care of the technical aspects of website management, allowing businesses to focus on their core operations.

Local special circumstances:
Israel is a small country with a relatively small market, which means that local web hosting providers face intense competition from international companies. However, Israeli customers often prefer local providers due to their familiarity with the market and the need for personalized support. Additionally, the Israeli government offers various incentives and support programs for startups and small businesses, which can help local web hosting providers to establish themselves in the market.

Underlying macroeconomic factors:
The Israeli economy has been growing steadily in recent years, with a focus on technology and innovation. This has led to an increase in the number of startups and small businesses, which in turn has driven demand for web hosting services. Additionally, Israel has a highly skilled workforce and a culture of entrepreneurship, which has attracted many international companies to set up operations in the country. This has created a diverse customer base for web hosting providers, ranging from small startups to large multinational corporations.

Global Comparison

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jun 2025

Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Technology

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Key Market Indicators

Notes: Based on data from IMF, World Bank, UN and Eurostat

Most recent update: Jan 2025

Source: Statista Market Insights

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