The information and communications sector employs 1.1 million people in Israel. Software exports total 14.6 billion dollars. Data on workforce shares, cloud adoption rates, and budget growth outline the structure of the Tel Aviv software development industry.
Key Takeaways
- About 11% of Israeli employment working in the information and communications sector (2022)
- 6.6% of Israel’s total workforce employed in information and communication activities (2022 OECD breakdown)
- 1.1 million people employed in Israel’s information and communication sector (2022 OECD series, rounded)
- 12.6% of Israeli science and engineering graduates are employed in software/IT functions (2021)
- 1,900+ active Israeli software R&D companies (2024, Dun & Bradstreet registry count)
- $14.6 billion Israeli software exports (2023)
- 18% of Israel’s total business services exports are software/IT-related (2023)
- $5.1 billion cloud-related spending by Israeli firms (2023, forecast)
- 67% of Israeli developers use Git-based workflows (2023 Stack Overflow survey)
- 58% of Israeli organizations use CRM systems (2024 Gartner consumer/enterprise survey)
- 2.7 million domains under .il with active DNS hosting in Israel (2023, VeriSign domain activity)
- 71% of organizations reduced cloud costs within 6 months of adopting cloud governance (2021/22 report)
- 4.5% improvement in customer conversion with site performance optimization at e-commerce benchmarks (2020 peer-reviewed study)
- 2.3x faster incident resolution with runbooks/automation (2022 SRE benchmark)
- $1.1 billion Israeli corporate R&D spending on software-enabled innovation (2022)
Israel’s software and IT sector drives major exports and innovation, with 1.5 percent of employment in ICT specialists.
Related reading
01 · Category
Labor & Workforce4 stats
01
About 11% of Israeli employment working in the information and communications sector (2022)
02
6.6% of Israel’s total workforce employed in information and communication activities (2022 OECD breakdown)
03
1.1 million people employed in Israel’s information and communication sector (2022 OECD series, rounded)
04
1.5% share of Israel’s total employment in ICT specialists (2023, OECD definition-based indicator)
Interpretation
Labor & Workforce Interpretation
In Labor and Workforce terms, Israel’s information and communications sector supports about 1.1 million jobs, making up 6.6% of the total workforce, and ICT specialists account for 1.5% of employment in 2023, underscoring how concentrated and employment heavy the software talent ecosystem is.
02 · Category
Labor & Skills2 stats
01
12.6% of Israeli science and engineering graduates are employed in software/IT functions (2021)
02
1,900+ active Israeli software R&D companies (2024, Dun & Bradstreet registry count)
Interpretation
Labor & Skills Interpretation
With 12.6% of Israel’s science and engineering graduates working in software and IT roles in 2021 alongside more than 1,900 active software R and D companies as of 2024, Tel Aviv’s labor and skills landscape looks both talent-rich and strongly supported by a large, ongoing industry base.
03 · Category
Market Size7 stats
01
$14.6 billion Israeli software exports (2023)
02
18% of Israel’s total business services exports are software/IT-related (2023)
03
$5.1 billion cloud-related spending by Israeli firms (2023, forecast)
04
1.7% of Israel’s GDP attributed to software/IT services (2022)
05
92.0% of Israeli tech exports are destined for OECD countries (2022, OECD trade matrix-based)
06
10.4% share of global cybersecurity funding raised by Israeli startups (2023)
07
54% of Israeli enterprises used managed cloud services in 2023 (survey)
Interpretation
Market Size Interpretation
With Israeli firms generating $14.6 billion in software exports in 2023 and capturing 10.4% of global cybersecurity funding in 2023, Tel Aviv’s software market size is clearly expanding through both large export volume and outsized global investment in a fast growing segment.
04 · Category
User Adoption4 stats
01
67% of Israeli developers use Git-based workflows (2023 Stack Overflow survey)
02
58% of Israeli organizations use CRM systems (2024 Gartner consumer/enterprise survey)
03
2.7 million domains under .il with active DNS hosting in Israel (2023, VeriSign domain activity)
04
33% of Israeli software teams use feature flags in production (2022 survey)
Interpretation
User Adoption Interpretation
From a user adoption perspective, Israeli software teams are rapidly normalizing modern tools, with 67% of developers using Git-based workflows and 33% already running feature flags in production, alongside broad CRM usage at 58% of organizations.
More related reading
05 · Category
Performance Metrics3 stats
01
71% of organizations reduced cloud costs within 6 months of adopting cloud governance (2021/22 report)
02
4.5% improvement in customer conversion with site performance optimization at e-commerce benchmarks (2020 peer-reviewed study)
03
2.3x faster incident resolution with runbooks/automation (2022 SRE benchmark)
Interpretation
Performance Metrics Interpretation
Performance improvements are showing measurable impact in Tel Aviv’s software development operations, with incident resolution becoming 2.3 times faster through runbooks and automation, a 4.5% lift in customer conversion tied to site performance optimization, and 71% of organizations cutting cloud costs within 6 months after adopting cloud governance.
06 · Category
Industry Trends3 stats
01
$1.1 billion Israeli corporate R&D spending on software-enabled innovation (2022)
02
31% of Israeli tech founders cited product-market fit as main priority (2023 survey)
03
33% of Israeli software security teams plan to adopt SBOMs across their software supply chain in 2024 (2023 report)
Interpretation
Industry Trends Interpretation
The Industry Trends signal is that Israel is combining major R&D investment of $1.1 billion in software enabled innovation with a strong focus on product market fit, where 31% of founders prioritize it, while security maturity is accelerating as 33% of software security teams plan to adopt SBOMs across their supply chain in 2024.
07 · Category
Cost Analysis4 stats
01
15% average increase in IT project budgets in Tel Aviv firms (2023, IT spending survey)
02
41% of organizations report cloud cost increases due to misconfiguration (2023 report)
03
53% of organizations use licensing models that limit cost predictability (2022 software procurement study)
04
Average breach cost globally is US$4.45 million (2023 IBM Cost of a Data Breach report)
Interpretation
Cost Analysis Interpretation
Cost pressures are mounting in Tel Aviv’s software development environment as IT project budgets rose by 15% on average in 2023 while 41% of organizations cite cloud misconfiguration as a driver of higher cloud costs.
report visual · Key figures
Tel Aviv’s software ecosystem: scale, employment, and export reach
Software is a major employment pillar and an export driver for Israel—supported by strong software exports and high overseas destination share.
1.1
1.1 million people employed in Israel’s information and communication sector (2022 OECD series, rounded)
$14.6 billion
$14.6 billion Israeli software exports (2023)
92%
92.0% of Israeli tech exports are destined for OECD countries (2022, OECD trade matrix-based)
1,900
1,900+ active Israeli software R&D companies (2024, Dun & Bradstreet registry count)
source-verifiedstats.oecd.org · gov.il · oecd.org · dnb.com2024
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Diana Reeves. (2026, February 13). Tel Aviv Software Development Industry Statistics. Gitnux. https://gitnux.org/tel-aviv-software-development-industry-statistics
MLA
Diana Reeves. "Tel Aviv Software Development Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/tel-aviv-software-development-industry-statistics.
Chicago
Diana Reeves. 2026. "Tel Aviv Software Development Industry Statistics." Gitnux. https://gitnux.org/tel-aviv-software-development-industry-statistics.
Sources & references
27 datasets cited across this report · attribution is report-level
+8 additional datasets cited (not shown individually)