Israel Route Optimization Software Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Software, Services), By Application (Food Delivery, Ride Hailing Services, E-Commerce, Others) - Forecasts From 2022 To 2027

  • Published : Jun 2022
  • Report Code : KSI061614750
  • Pages : 90

The Israel route optimization software market is evaluated at US$6.142 million for the year 2020, growing at a CAGR of 9.74% reaching the market size of US$11.772 million by the year 2027.

The route optimization software is a kind of software used to find the quickest and most cost-friendly route among several available routes. The optimized route is concluded based upon metrics like the number of stop locations and time taken for each delivery spot between the start and end of the route. The route optimization software market for Israel is projected to show robust growth owing to the high foreign investments in technology by major players all over the world. Major acquisitions made by key players in the cloud and other advanced technology sectors are projected to have promising growth for Israel’s route optimization software market. For instance, Google, in January 2022, acquired Israel-based security, automation, and response (SOAR) start-up as an expansion of the Google cloud. Also, the increase in domestic e-commerce amid the competition offered by the foreign players is further anticipated to fuel the overall growth of the e-commerce market and eventually propel the growth of the route optimization software in the country. However, the non-uniform technical standard adherence of Israel’s industries to international standards and the lack of adequate digital skills are major restraints on the route optimization market’s growth during the forecast period.

The COVID-19 impact on Israel’s route optimization was initially negative owing to the worldwide lockdown and supply chain disruption, affecting all the markets, including the route optimization software market. However, smart commutes in Israel led to efficient transportation and mitigated the negative impact of COVID-19. As per the July 2020 article by the World Economic Forum, Israel’s population smart commuted by leveraging mobility-as-a-service (Maas) and transported 176,500 commuters by adopting a tailored commuting system with an on-demand transit routing algorithm with 75,000 trips within the first three weeks of the launch. The overall COVID-19 impact on the route optimization market in Israel was positive.

Foreign investment in technology, growing start-ups

The rising foreign investment and acquisitions in Israel by major technological players in the world are projected for the future growth of the country in terms of advanced technology, thereby propelling the anticipated growth of the route optimization marker in Israel. For instance, as per the March 2022, press release of global technology leader, Intel, the company announced it would acquire Israel-based Granulate Cloud Solutions Ltd., the latter being a real-time continuous optimization software developer. Additionally, in April 2021, the government of Israel selected Google and Amazon Web Services to provide cloud-based solutions to Israeli government agencies. As per the May 2021 Google Cloud release, the agreement will run initially for a period of 7 years, with a projected extension of 23 years by the Israeli government.  The massive acquisitions and foreign technological players’ penetration into Israel are projected to enrich the technological asset of the country, thereby driving the growth of the route optimization market in Israel. Furthermore, with an increasing number of start-ups in Israel, the route optimization software market is expected to grow further.  As per the May 2019 article by The Airline Passenger Experience Association (APEX), Israel became the world’s start-up nation, with the greatest number of start-ups per capita, i.e., 1 start-up per 1400 people. Additionally, as per the news release by Start-Up Nation Central in December 2021, Israel tech startups raised USD 25.4 billion in 2021, with a 136% growth compared to 2020 and surpassing the average global increase of 71% as well. The same source also stated that 33 private companies joined the unicorn club by reaching a valuation of USD 1 billion. Additionally, 2021 witnessed large foreign VC investments into the tech start-ups of Israel. Moreover, the increase in e-commerce penetration in the domestic markets of Israel is additionally anticipated to further push the future market growth of the route optimization software in Israel owing to the fast and cost-effective delivery needs in the coming years. For instance, as per the September 2021 publication by the International Trade Administration (ITA), the strong presence of foreign e-commerce companies in Israel has pushed the local players to dive into the e-commerce landscape, thereby increasing the market growth of e-commerce. Increased foreign investment into technology, growing start-ups, and a national e-commerce push are anticipated to drive the route optimization market for Israel during the forecast period.

Technical standards non-uniformity, lack of technological skills

As per the September 2021 release of the International Trade Administration (ITA), Israel’s close ties with Europe have led to the adoption of technical standards of the European Union (EU). This adoption of European standards has become an obstacle for the companies from the United States that are operating in Israel and for the new foreign companies adhering to international standards who plan to expand their business in the country. This failure to comply with technical standardisation is expected to reduce the overall market share of route optimization software in Israel. Also, in 2021, Matanyahu Engleman, Israel’s state comptroller, warned of a chronic shortage of labour as a strategic threat to Israel’s hi-tech industry. The technical standardization problem, along with the lack of skill, is a major factor in reducing the future market of the route optimization software market in Israel during the forecast period.

Segmentation

  • By Product
    • Software
    • Services
  • By Application
    • Food Delivery
    • Ride-Hailing Services
    • E-commerce
    • Others

1. Introduction
1.1. Market Definition
1.2. Market Segmentation


2. Research Methodology
2.1. Research Data
2.2. Assumptions


3. Executive Summary
3.1. Research Highlights


4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis


5. Israel Route Optimization Software Market Analysis, by Product
5.1. Introduction
5.2. Software
5.3. Services


6. Israel Route Optimization Software Market Analysis, by Application
6.1. Introduction
6.2. Food Delivery
6.3. Ride-Hailing Services
6.4. E-commerce
6.5. Others


7. Competitive Environment and Analysis
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix


8. Company Profiles 
8.1. Trimble Inc
8.2. Omnitracs
8.3. Microlise Telematics Pvt Ltd
8.4. Route4Me Inc.


Trimble Inc.

Omnitracs

Microlise Telematics Pvt Ltd

Route4Me Inc.