The Israeli innovation ecosystem is one of the most mature technology hubs worldwide. Today, Israel spends almost double the Organisation for Economic Co-operation and Development average on R&D, at 4.5 percent of GDP, placing it a close second to South Korea.
Fueled by the need to defend critical electronic infrastructure and to analyze data collected by Israel’s intelligence corps, two of the technologies the country has been developing the most are cybersecurity and artificial intelligence (AI), which are now becoming key technologies in the ACES (autonomous, connected, electrified, and shared) revolution in the automotive and mobility industries.
An analysis by the McKinsey Center for Future Mobility (MCFM) expects the market for automotive software and electronics to grow by 7 percent year-over-year in the coming years, becoming a $470 billion industry. In 2030, 57 percent of this industry will likely be in software development, sensors, and electronic control units; fields that should rely heavily on AI algorithms—and require cybersecurity capabilities to ensure their safety.
Since 2010, over 40 mobility-dedicated start-ups in Israel have received funding from investors, as have over 300 start-ups with possible applications in mobility. These companies benefit from very strong investment growth in automotive technology, totaling $18.4 billion since 2010 in Israel.