Turkey's Information and Communication Technologies sector reached the volume of 131.7 billion TL
TÜBİSAD has announced the ”Information and Communication Technologies Sector Market Data of 2018". According to these data, the sector reached 131.7 billion TL business volume with a growth of 15 percent compared to the previous year. With an employment increase of up to 139 thousand people, the sector's export volume became 4,916 billion TL.
Informatics Industry Association (TÜBİSAD) announced “Information and Communication Technology Sector Market Data” of 2018. Deputy Minister of Transport and Infrastructure Ömer Fatih Sayan and TUBISAD Chairperson Kübra Erman Karaca made the opening speech of the meeting while TÜBİSAD Information Center Committee Chairman Levent Kızıltan and Deloitte Turkey Director Alper Günaydın made statements about the report.
Domestic and national products
Deputy Minister of Transport and Infrastructure Dr. Ömer Fatih Sayan stated that the Information and Communication Technologies sector is in a central position affecting the development of other sectors, and thanked TÜBİSAD and its stakeholders for preparing the report. Sayan, by stating that the importance of informatics is increasing every day for Turkey's economy, he said:
"In a period where the informatics sector is talking about the industry 4.0, defense industry uses unmanned aerial vehicles, the artificial intelligence is intensely the matter at hand, it is out of question that Turkey would be neglecting this sector. Especially domestic and national products used in the defense industry are making us highly proud. Undoubtedly, "the National Technology Move" initiated by our President Recep Tayyip Erdoğan has a great and non-negligible impact on the basis of these developments. This is the ideal that will bring our country to achieve entirely domestic and national production in 2023.
In order to build this ideal on a substantial foundation, we, as the Ministry, are conducting intense work by which we are sharing the ideas and experiences with other institutions and organizations on information and communication technologies. Again, we continue to provide the necessary contribution to the efforts to meet the demand for qualified labor force in the sector and to increase the domestic market demand.
We want to bring together the dynamism of the private sector and the power of the public sector in the development of domestic and national technologies. We will make serious contributions to the economic development of our country by this created synergy."
Growth continued
TÜBİSAD Chairperson Kübra Erman Karaca said that the study "Information and Communication Technologies Sector Data" has become more important every year. Karaca stated that in 2018, the information and communication technologies sector continued to grow on Turkish Lira basis and the high-tech products will provide the development of the economy, continued as follows:
“Information and communication technologies sector market data indicate a 15 percent increase for the year 2018. Although this is lower than the previous years, the growth rate is fairly high compared with other industries in Turkey. However, our will is much higher increases. Because, we believe that our country will come to the level of economic development it deserves only by such increases.
The total increase in industrial production since January 2016 remained at 8.3 percent, while the growth in high-tech sectors is 54 percent. This data proves once again our argument that we have always put forward, that the high-technology sectors will drive growth in the economy.
In the new reform package, Minister of Foreign Affairs Dear Mr. Berat Albayrak emphasized that sustainable growth and employment were the targets to be achieved, and stressed that an economy based on exportation, and that prioritizes high added value and technological production will be established. The sector for which achieving these objectives is the top priority is undoubtedly the information and communication technologies sector.
Our sector has strategic importance for Digital Turkey and he transformation to the digital economy, which are the priority areas for TÜBİSAD. It is highly important that the public sector is guiding the real sector and facilitating the transformation process, especially for SMEs and households. We see the digital transformation reform as an important component of the structural reform program. It is our greatest wish that the digital transformation reform will be enabled comprehensively and implemented immediately.”
Focus on added value activities
Project advisor of the eighth "Information and Communication Technologies Market Data" report, Deloitte Turkey Director Alper Günaydın stated:
"This study which we have carried out with TÜBİSAD for the last 6 years is an important guide for the sector. The number of companies within the scope of our study increased by more than 5 times over the last 6 years and reached 5,405, by the healthy data flow from stakeholders. This year, as the results point to TL-based growth, they are highlighting the importance of focusing on added value activities such as software and services. In this way, the growth in the sector will gain more momentum and especially the increase in exports would be achieved."
2018 Information and Communication Sector Market Size
According to the information provided by Deloitte Turkey Director Alper Günaydın, who made a statement on behalf of TÜBİSAD, the size of the informatics sector of Turkey in 2018 were ranked as follows:
The total sector size of Information and Communication Technologies reached the volume of 131.7 billion TL in 2018 with 15 percent growth in Turkish Lira. In terms of US dollar, the sector size, which was in the volume of 30-33 billion dollar in the previous years, decreased to the volume of 27-30 billion in 2018 due to exchange rate effects.
Information technologies, one of the two main components of the total sector size, reached 44.7 billion TL in 2018 with a 15.2 percent growth in Turkish Lira, while Communication Technologies, with a 14.9 percent growth, reached 86.9 billion TL."
Information Technologies:
The size of the sub categories of Information Technologies that reached 44.7 billion TL in 2018 are as follows:
Information Technologies Hardware: 17,1 billion TL
Information Technologies Software: 18,3 billion TL
Information Technologies Service: 9,4 billion TL
Communication Technologies:
Communication Technologies sector reached the size of 86,9 billion TL in 2018. The sub categories are as follows:
Communication Technologies Hardware: 27,9 billion TL
Communication Technologies Electronic Communication: 59 billion TL
Employment
In 2018, the total employment volume of the sector reached 139 thousand people. Total employment is increased by 4 percent. 76 percent of the total employment of the sector is in the category of Information Technology.
Technoparks
The growth continued at Technoparks, the turnover generated by the technoparks has reached 16 billion TL, with a 23.1 percent increase in 2018 compared to the previous year. In 2018, 12 percent of the total sector volume was created in technoparks.
Exportation
The export performance of the sector reached 4,916 billion TL with a growth of 14 percent in TL while as TL depreciated by an average of 32 percent in 2018, there has been a downsizing on dollar basis. In addition to the increase of the institutional capacities of technology firms to increase export performance, market diversity activities should also be supported.
The sectors that will have the highest impact in the next 5 years
TÜBİSAD's "Information and Communication Technology Sector 2018 Market Data ”report included the expectations and predictions of ICT companies. According to the report, company representatives listed the technological areas that will have an impact on the sector in the next 5 years as follow:
Artificial Intelligence, Cloud Technology, Analytical/Big Data, Industry 4.0, Cyber Security, Emerging Technologies (3D printers, virtual reality, etc.), Blockchain, Modernization of existing systems.
