Israel's Cybersecurity Industry

A Global Powerhouse

Tracking the growth and impact from 2024 to present

Global Cybersecurity Leader

Israel has established itself as a global leader in cybersecurity, with its roots deeply embedded in national security needs, military expertise, and an unparalleled innovation ecosystem. What began as a necessity for defending against cyber threats has transformed into a dominant industry that drives investment, technological advancements, and economic growth.

The Israeli cybersecurity sector continues to thrive despite global challenges, demonstrating remarkable resilience and innovation.

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Billion USD Investments (2024)
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Cybersecurity Companies
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% of Total Tech Funding
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% Annual Growth Rate (CAGR 2025-2029)

Investment & Funding

Funding Rounds (2024)

Seed Rounds
58
Series A
15
Series B
10
Series C+
16

56%

Increase in funding from 2023 to 2024

$400M

Total seed funding in 2024

300%

Increase in Series C+ funding from 2023

Market Size & Projections

Market Segments (2025)

Global Context

Israel's cybersecurity market is projected to reach $1.03 billion in 2025, while the United States market is expected to reach $88.2 billion.

Israel: $1.03B
US: $88.2B

Industry Overview

Cybersecurity Ecosystem

Israel Cybersecurity Map
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Cybersecurity Companies
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Dedicated Research Centers
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Top 10 Global Companies with R&D Centers
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% of U.S. Private Cybersecurity Funding

Key Strengths

  • Military expertise (Unit 8200)
  • Government support and investment
  • Integrated academic-industry collaboration
  • International partnerships (70+ cyber centers)

Key Growth Areas

Cloud Security

Cloud Security has seen explosive growth with 15 funding rounds in 2024, up from 6 in 2023 (150% increase). This growth is driven by the accelerating shift to cloud infrastructure and the need for specialized security solutions.

150%
Increase in Funding Rounds

Identity and Access Management

Identity and Access Management led with 16 funding rounds in 2024, up from 9 in 2023 (78% increase). This reflects the growing importance of secure identity verification and access control in increasingly complex IT environments.

78%
Increase in Funding Rounds

AI Security

AI Security has seen significant growth, evolving beyond enabling the secure use of GenAI technology to leveraging AI to transform traditional security domains. This area represents the cutting edge of cybersecurity innovation in Israel.

Significant Growth

Major Acquisitions

Google Acquires Wiz

$32 Billion

March 18, 2025

Google's parent company Alphabet announced the acquisition of Israeli-founded cybersecurity startup Wiz for $32 billion in an all-cash transaction, making it the largest-ever acquisition of an Israeli company and Google's biggest acquisition in its history.

This landmark deal underscores the strategic importance of cloud security and Israel's dominant position in the global cybersecurity landscape. Once closed, Wiz will join Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud).

"Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds."
— Sundar Pichai, CEO, Google

Strategic Significance

  • Largest tech acquisition in Israel's history
  • Google's biggest acquisition ever
  • Validates Israel's cybersecurity leadership
  • Focuses on cloud security and multicloud capabilities
  • Wiz will continue supporting all major cloud platforms
4
Years from founding to acquisition
$12B
Wiz valuation before acquisition

Other Major Acquisitions

CyberArk acquires Venafi

$1.5 Billion

One of the largest acquisitions in the Israeli cybersecurity sector in 2024.

Wiz acquires Dazz

$450 Million

Strategic acquisition to expand Wiz's cloud security capabilities.

Wiz acquires Gem

$350 Million

Further consolidation in the cloud security space.

Cymulate acquires CYNC Secure

$10 Million

Enhancing exposure management solutions and threat validation capabilities.

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Billion USD in Total Acquisition Value (2024-2025)
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Acquisitions of VC-backed Israeli cyber companies in the last six years

Israeli companies accounted for 7 of the top 10 cyber acquisitions in 2024 by exit value, demonstrating the country's outsized impact on the global cybersecurity landscape.

Israeli Cybersecurity Companies Map

Explore Israel's vibrant cybersecurity ecosystem with over 500 companies across different security domains.