Turkey Information Technology Report Q2 2016
BMI View: Turkey's IT market growth trajectory took a downturn in 2015 when a combination of liradepreciation and political unrest resulted in deferred purchases and heightened price sensitivity. Based onour forecast for economic conditions to remain challenging in 2016 we expect the IT market will onlystrengthen marginally from 2015, and contract again in US dollar terms due to lira depreciation. Themedium term outlook is however brighter, particularly from 2018, when we expect IT demand growth toresume on a trajectory determined by a convergence of income growth, declining device prices, inwardinvestment and domestic private and public sector modernisation initiatives predicted to drive demandgrowth. We forecast total IT spending will grow at a CAGR of 8.6% 2016-2020 to a total of TRY24.4bn in2020.
Latest Updates And Industry Developments
Computer Hardware: Forecast growth from TRY11.7bn in 2016 to TRY15.5bn in 2020, at a compoundannual growth rate (CAGR) of 7.2%. Traditionally low PC penetration presents a huge opportunity forvendors when economic conditions stabilise, but in 2016 market expected to again contract in US dollarand volume terms due to depreciation.
Software: Predicted growth of TRY2.3bn in 2016 to TRY3.5bn in 2019, at a CAGR of 10.6%.
Competitive pressures resulting from trade liberalisation and modernisation, as well as wider access tocloud delivery software-as-a-service (SaaS) products underpin our positive medium-term outlook forsoftware spending growth
Services: CAGR of 11.6% over 2016-2019, increasing from TRY3.5bn in 2016 to TRY5.4bn in 2019.
Cost saving rationale of IT services make the segment more resilient in an economic downturn, whileadoption of cloud computing services adds to medium term growth momentum as supply and awarenessof potential benefits increases.
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