Top 5 Tech Trends for Israeli Tech in 2022

Israel has been known as the “Startup Nation” a moniker coined by Dan Senor’s 2011 book “Startup Nation: The Story of Israel’s Economic Miracle.” However, to reflect the transition of Israel’s tech sector from newcomer to leadership status in global innovation, John Medved CEO of Our Crowd has coined the term “scale-up nation.”

Medved told No Camels, “We really are transitioning from startup nation to scale-up nation and this is just attracting so much capital. Israeli innovation is everywhere, touching numerous tech sectors simultaneously. In 2021, local tech companies continued to take the lead in cybersecurity, agriculture technologies, financial technologies, mobility, data, and digital privacy, among other fields.”

So what is in store for 2022, and why is this the best time to invest in Israel’s tech sector? Look for these trends this year:

eCommerce

Amazon is king of eCommerce, but there are many other merchants that are poised to take market share from this giant. Israel companies are helping merchants compete with Amazon through more efficient logistics and warehousing solutions.

Returns are becoming a major problem for online retailers, many of whom celebrated a robust holiday shopping season only to find the huge number of returns eating away at their revenue. Preventing returns from happening in the first place and helping merchants deal with them efficiently are some issues Israeli companies are addressing.

In addition, improving customer experience with AI and machine learning is the goal of many startups and to provide the customer an immersive experience even when shopping from the comfort of their living room.

Quantum Computing

Quantum computing ushers in a new age with super-fast systems that use quantum properties. The Israeli government has been working on the project of creating a quantum computer for years and allocated $60 million to a 5-year effort in 2019. An Israeli team headed by Dr. Shlomi Kotler was awarded the Physics World’s 2021 Breakthrough Award for advancing the knowledge of quantum systems. There is no telling whether Israeli scientists will read the goal first, but they are leading the way towards super-fast computing.

Digital Healthcare

The pandemic has exposed many gaps in healthcare systems. With lockdowns, many people faced the quandary of receiving testing or treatment when there was uncertainty whether traveling back and forth to health centers could expose themselves or others to infection.

Many of Israel’s 1,400 digital health startups are tackling these and other problems and providing solutions such as telemedicine and at-home medical devices. People would be able to test and carry out certain treatments in their homes.

Other exciting developments in digital health include molecular diagnostics that will give the most individualized examination and treatment possible and use artificial intelligence and machine learning in drug discovery and research.

Blockchain

Everyone is talking about cryptocurrencies, which rely on the blockchain for every transaction. When people make transactions using cryptocurrencies, such as bitcoin, a new block is created through ledger technology.

The blockchain has many other applications beyond currency, including NFTs or non-fungible tokens which are used for everything from music to artwork. Many companies such as Paypal, Visa, Nike, and Facebook and exploring ways to use the blockchain to improve their services and may payment easier.

As cryptocurrency as a form of payment is accepted by more businesses and as the blockchain is used to deliver more services, blockchain innovations are going to be viewed as essential.

Food Technology

Whether the emphasis is on saving the planet, being kind to animals, preserving health or feeding the world, food technology is a hot topic.

Israel is contributing to this global issue with the opening of Margalit Startup City Galil–the international Foodtech Center which was developed with cooperation from the Jewish National Fund. Lab-grown meat and sustainable agriculture are the main focus of Israeli food innovation.

Invest in Israel’s Tech Sector

The year 2022 is likely to be a continuation of the success of 2021 with Israeli startups leading in technological innovation. Tech stocks are great Israeli investments and one of the best ways to invest in Israel is through ETFs, which provide a broader exposure to Israel’s economy.

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