Source: Export.gov – June 2017

Israel’s Innovative Automotive Technology Industry

Electronic components have become an increasingly significant part of a vehicle, having risen in the past 10 years from 10% to 40%. Originally developed for use in the aerospace and defense industries, Israeli companies have successfully adapted these technologies to civilian use with groundbreaking automotive technologies. In recent years, Israeli companies have invented a number of breakthrough technologies including specialized materials, advanced electronics, communication systems, driver awareness systems, automotive IT and security. More than 150 Israeli manufacturers supply systems, parts, modules and tooling to both original equipment manufacturers (OEMs) and to supplier tiers, produce tool and production line systems, design and assemble buses and vehicles, manufacture after-market products, as well as developing advanced automotive technologies including innovative materials, advanced electronics and automation technologies, and clean tech initiatives.

“Israel exports nearly $1 billion worth of automotive parts and systems annually, many of which are utilized by leading manufacturers such as Daimler, Jaguar, BMW, VW, PSA, GM, MAN, Navistar, Renault-Nissan, FORD, Volvo, Chrysler, Scania, Fiat-IVECO, Toyota and Hyundai as well as to Tier 1 suppliers such as: Delphi, Bosch, Valeo, Autoliv, Faurecia, Johnson Controls and Magna Styer.”

Sub-Sector Best Prospects

Car security and anti-theft devices: anti-theft electronic systems, locking devices.

Car body: bumpers, radiator grills, hood and trunk lids, wings, front and rear lamps (i.e. the parts most vulnerable in car accidents). Service parts: disc brake pads, shock absorbers, front suspension parts, filters for oil and lubrication, air conditioning parts.

Replacement service parts: tires, fan belts, water hoses, water pumps, brake components, engine and transmission components, electrical components, undercarriage items that need replacing at the end of the warranty period. Vehicle accessories: car care products, polish, wax, upholstery spray water-coolants (Glycol) for radiators.  Electronic accessories: TV screens for the rear seats, GPS systems, sound systems etc. Universal lubricants: well-known brand names of high-grade oils, lubricating, glycol, wax. The market demands well-known brand names.

Representative in Israel

Partnering up with a reputable local representative who has excellent contacts in the industry, proven reliability, loyalty, technical suitability and after-sales service capability is a key factor to success in selling and maintaining a continued presence in the Israeli market. U.S. companies need to be aggressive in their pursuit of business opportunities and maintain an active in-country presence. The most common approach used by exporters is to obtain a local importer/distributor. Distributors will import on their own account, carry sufficient stock to satisfy ongoing demand or to use for demonstration, maintain their own sales organization, supply spare parts and maintain a service division, if applicable.

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Source: Export.gov – June 2017

Israel is a major importer of electronic components.  As a developed technology market, Israel is always looking for innovative technologies and components to enhance product technical features. Developments in the Israeli telecom, defense and homeland security markets have had a positive effect on the increased demand for electronic components. Israel’s purchasing nature is based on two main factors, price and technical support, which Artec Lantec excels at providing.

Sales & Distribution Opportunities

Israel offers opportunities for U.S. exporters of active components, RF & microwave, power amplifiers and semiconductors. There are a large number of Israeli companies that represent U.S. firms in this sector, always looking for new-to-market U.S. companies with good service and competitive prices that they can represent.

Israel – Market Opportunities

Hi-tech and defense dominate Israel’s trade numbers, and Israel remains a global center for hi-tech design and R&D. Hi-tech continues to provide opportunities for U.S.-Israel commercial partnerships, specifically in ICT technologies including cyber security, safety and security equipment and services, defense equipment, medical technologies and biotechnology products. Power generation and education/training also represent good opportunities.

U.S.-Israeli commercial linkages often consist of U.S. firms providing electronic inputs which Israeli firms integrate into final products destined for re-export.

Road technology and infrastructure projects could offer millions of dollars’ worth of export opportunities for U.S. firms over the next five years, especially since Israel adopted U.S. standards in intelligent transportation systems.

Health IT in Israel is very advanced in the implementation of multifunctional, interoperable health IT systems built around electronic medical records. However, since local software development companies and integrators provide Israel’s health IT infrastructure and services, there are limited opportunities for U.S. SMEs in this sector.

Through the large U.S. Foreign Military Funding/Sales program in Israel, the size of the aerospace industry exceeds $3 billion annually and most major procurements for the Israel Air Force originate in the U.S. The Israel Air Force (IAF) is in the process of a staggered replacement of its F-16 fleet of fighter aircraft with F-35s, and a helicopter procurement plan is under consideration.

Since 2009, Israel has discovered over 900 Billion Cubic Meters (BCM) of offshore natural gas. U.S. energy company Noble Energy and its local partners are supplying gas from the Tamar field that provides for approximately 60% of Israel’s electricity needs.  After a protracted public debate and the Israeli High Court’s intervention, the Israeli Prime Minister’s Cabinet finally agreed on a revised Gas Framework in late May 2016 paving the way for Noble Energy’s development of the Leviathan gas field.  Noble believes the Leviathan field is on track for first production by the end of 2019.

Israel is recognized as a leading player in the semiconductor industry with five active semiconductor manufacturing plants (fabs) in Israel; three owned by Intel and two by Tower/Jazz. Intel has invested approximately $6 billion in upgrading its Kiryat Gat fab facility.

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