Turkey Information Technology Report Q1 2013
- ID: 2356115
- December 2012
- Region: Turkey
- 59 pages
- Business Monitor International
BMI expects more modest IT market growth in 2013, as a result of declining business and consumer confidence and increasing downside risks to the Turkish economy. However, the IT market will grow alongside other sectors as the government implements its programme of privatisation and reform. The Fatih programme to increase technology use in schools will boost PC sales in 2012. Computer penetration should pass 50% by 2016, while small- and medium-sized enterprises (SMEs) also represent a large potential market.
Headline Expenditure Projections:
- Computer hardware sales: US$5.7bn in 2012 to US$6.3bn in 2013,+10% in US dollar terms.
Forecast in US dollar terms downwardly revised due to macroeconomic factors, but upgrades to Windows 8-based machines could provide a boost.
- Software sales: US$941mn in 2012 to US$1.0bn in 2013, +16% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but will depend on the success in bringing down illegal software use, which at 65% is nearly twice the global average.
- IT Services sales: US$1.3bn in 2012 to US$1.5bn in 2013, +15% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification and a 12% CAGR is projected for the five-year forecast period.
Turkey's score was 49.8 out of 100.0, unchanged from the previous quarter, with low Risks ratings restraining potentially high Rewards. BMI expects business and consumer IT spending to hold up relatively well, although continued price erosion in the PC market will place pressure on margins. Despite its static score, Turkey moved into tenth place in our latest RRR table and the country is in a favourable position to continue to be a regional IT market outperformer.
Key Trends & Developments:
- The Fatih technology for schools programme will provide a significant boost to PC sales over the next few years, with a goal to provide tablets to 15mn students with tablet PCs, as well as other devices such as digital cameras. The project is expected to cost up to US$7.5mn and should reach 570,000 classrooms over the next five years. The focus of the project is networked computers, printers and cameras for every classroom, as well as educational content.
- PC sales have received new momentum as the focus of demand shifts towards the Anatolia region and this is expected to continue as the rate of PC penetration rises. The government has set itself a target of increasing computer ownership to 51% and internet usage to 48%. While these targets may be ambitious, the computer penetration rate should increase to around 73% by 2016. The household sector, as well as corporate spending, will drive IT market growth.
- The government will continue to advance its ambitious plan to build an information society. In 2012, Science, the Industry and Technology Minister, Nihat Ergun, signed an agreement that offered major government incentives to domestic companies in the sector. As a result of the agreement, the IT sector will become one of the two industries that will receive the most government subsidies over the next ten years, along with the automotive industry. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Turkey IT Sector SWOT 7
Turkey Telecoms Industry SWOT 8
Turkey Political SWOT 9
Turkey Economic SWOT 10
Turkey Business Environment SWOT 10
Europe IT Risk/Reward Ratings 11
Table: Europe Risk/Reward Ratings, Q113 13
Europe IT Regional Overview 14
IT Penetration 14
Sectors And Verticals 18
Industry Forecast 23
Table: Turkey IT Sector - Historical Data & Forecasts , 2010-2017 26
Industry Forecast Internet 27
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017 27
Competitive Landscape 29
Software And Services 31
Internet Competitive Landscape 35
Macroeconomic Forecast 36
Table: Turkey - Economic Activity, 2011-2016 38
Company Profiles 39
Meteksan IT Group 44
Koç Sistem 46
Oracle Corp 47
Country Snapshot 51
Table: Turkey's Population By Age Group, 1990-2020 ('000) 52
Table: Turkey's Population By Age Group, 1990-2020 (% of population) 53
Table: Turkey's Key Population Ratios, 1990-2020 54
Table: Turkey's Rural And Urban Population, 1990-2020 54
BMI Methodology 55
How We Generate Our Industry Forecasts 55
IT Industry 55
IT Ratings – Methodology 56
Table: IT Business Environment Indicators 57
Table: Weighting Of Components 58