IT Spending in Turkey to Top $11.8 Billion in 2014 As Smartphones and Tablets Spurs Demand
Published on: 12th Mar 2014
Note -- this news article is more than a year old.
Overall IT spending in Turkey is expected to increase by 8.6% year on year in 2014 to total $11.82 billion according to the latest figures released today by International Data Corporation (IDC).
IDC says that various government initiatives under the ambitious Vision 2023 national plan are combining with the country's large and relatively young population to propel significant growth across all major end-user segments, particularly consumer, communications, finance, transport, and government.
"The sheer size of the population -- the majority of which are young individuals -- makes the consumer segment the biggest contributor to IT spending in Turkey," says Nevin Cizmeciogullari, country manager for IDC Turkey. "Indeed, IDC predicts that 52.6% of all IT spending in Turkey in 2014 will be attributable to consumers, with much of it going towards personal computers, media tablets, and smartphones. The rising middle class, rapid advancement of mobile technology, and improvements in communications infrastructure are the major drivers of growth in this end-user segment."
The combined transport, communications, and utilities vertical is expected to be second-biggest vertical market in terms of IT spending in 2014, with such organizations set to invest $1.69 billion and account for 14.3% of the country's total IT market. The growth in the communications sector will primarily be driven by investments relating to infrastructure upgrades, particularly networking equipment and operational support systems. Meanwhile, large-scale infrastructure upgrade projects aimed at improving Turkey's transport and utilities networks will be the main drivers of ICT spending in these respective sectors.
The third-biggest vertical in Turkey is expected to be finance sector, which includes banking, insurance, and securities services providers. Such organizations are expected to invest $1.01 billion in 2014, representing 8.5% share of the overall Turkish IT market. IT spending in this vertical will be driven by a greater adherence to financial regulations, expansions of branch and ATM networks, and an increased industry focus on developing alternate service channels such as online and mobile banking.
Turkey has witnessed consistent growth in IT spending over recent years, supported by robust economic growth, which is expected to continue through 2017. IDC expects IT spending in Turkey to increase at a compound annual growth rate (CAGR) of 7.3% over the five-year forecast period to total $13.6 billion in 2017, and while consumer, telecommunications, and finance will remain the biggest IT spending verticals, transport, finance, and government will be the fastest growing verticals during this period.
"Turkey's IT market is expected to continue its robust growth throughout the 2013-2017 forecast period," says Jebin George, a senior research analyst at IDC Middle East, Africa, and Turkey. "As the government continues its privatization initiatives and invests in large infrastructure projects, IT vendors will find many opportunities across the market, particularly in the consumer, communications, finance, and government verticals."