This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 12/10/2019


Overview
Israel’s market for safety and security equipment and services is sophisticated and highly competitive. The market is price sensitive but demands high quality equipment with low failure rates. The market is highly receptive to U.S. products and technologies. Current imports of safety and security products to Israel are an estimated $1.2 billion, with almost 50% U.S. market share. Hundreds of U.S. security companies are active in the Israeli market, including L3, Morpho Trust, Raytheon, FLIR, Smiths Detection, SAIC and many others. In the low-end equipment market, however, most U.S. technologies are not price competitive with Asian products.

Israel has some 600 exporters of security technologies and services, including integrators and service companies. The country’s security-awareness and high-level of preparedness are the driving forces for the development of a cutting-edge security industry. The annual sales of domestic equipment and services are estimated at $1.5 billion, with exports exceeding 70%. There are overlaps between this sector and the defense sector. According to Israel’s MOD, 8% of total defense exports consisted of cyber systems and intelligence and information systems in 2018. Good opportunities also exist in sales of security items financed with U.S. funds (FMS/FMF) to the local defense establishment. 

Israeli manufacturers are important end-users of imported security equipment and components that are integrated into locally produced security systems for export. This makes Israel an attractive market for U.S. manufacturers of high-end equipment and components that can be integrated into Israeli systems. There is a trend though, to avoid the purchase of U.S. export-controlled items for integration in systems due to the restrictions on re-export.

Some homeland security systems are sold to the Israeli MOD with Foreign Military Funding (FMF) or Foreign Military Sales (FMS), giving an advantage to U.S. manufacturers.

Leading Sub-Sectors
In the demanding HLS sector, there is ongoing need for high quality, efficient systems with low failure rates. One of the country’s security concerns is safeguarding the offshore natural gas facilities and the maritime transport system supporting the rigs. Another concern is safeguarding the border with the Gaza Strip from fire balloons and violent demonstrations that require non-lethal response. Subsectors with most potential for the U.S. industry include screening technologies, sensors, non-lethal weapons, advanced first-responder systems and technologies including situational awareness, sensors and wearables. Other leading sub sectors include law enforcement supporting technologies to combat cybercrime, technologies and methods to secure critical infrastructure and public facilities, safe and secure cities technologies, border protection including maritime security (such as biometrics, screening systems and robotics), unmanned aerial systems, advanced first responder technologies such as video analytics, first responders protective clothing, wearable and situational awareness technologies; environmentally safe fire retardants.

Opportunities
Good opportunities exist for sophisticated equipment used in homeland security applications. U.S. security equipment, which enjoys an excellent reputation in Israel due to its high reliability, is often used for sensitive applications by high-security industries and for key infrastructures and installations. The market offers good opportunities for U.S. exporters of non-lethal dispersion of masses means, vehicle wheel locking devices detection and screening systems, sensors, biometric solutions, x-ray systems, anti-drone technologies and solutions, that can detect, classify and hinder potential threats, first responder solutions, technologies for the prevention of agricultural crime, including hyperspectral scanners. Technologies for detection of hidden weapons and arms. U.S. exporters should take into account that their products may be re-exported. U.S. companies that want to participate in this sector should be knowledgeable of U.S. export control regulations.

The main single buyer of safety and security equipment and services in Israel is the Ministry of Public Security (MoPS). Its annual procurement budget is estimated around $1.1 billion, an amount that is spent on equipment and services for the Israel Police, Prison Service, Fire & Rescue Authority, Anti-Drug and Alcohol Authority and the Witness Protection Authority.  Public tenders are not always visible to the general public, so U.S. companies will not always be aware of major tenders. For this reason and because there is no single centralized Israeli government website where public procurements are advertised, we encourage U.S. suppliers to appoint a local agent who would keep a close eye on immediate and long-term opportunities.   For additional information, please contact Commercial Specialist Yael Torres at Yael.Torres@trade.gov; Phone: +972-3-519-8522

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Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.