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ICT Industry in Turkey by 2016
1. Foreign Market Consulting Ltd. Sti
Istanbul
October 2016
ICT Industry in Turkey
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com
2. FMConsulting prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different
segments, please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmconsulting.com ). We would be happy to support you.
4. 4
• Total ICT market size is USD 30.4 bn.
• Breakdown: Telecommunication technologies/TT (67%), information technologies/IT
(33%).
• 2,979 companies are active.
• 113 thousand people are employed, 66% is in IT, 34% in TT.
• 2016 growth expectation: 5-9% in USD based market size.
A. Market
ICT market
Source: TUBISAD (Informatics Industry Association of Turkey), 2016
TT - Electronic
Communication
48%
TT Hardware
19%
IT Hardware
15%
IT Software
12%
IT Services
6%
ICT Market Segment Shares (2015)
5. 5
• Turkish people become increasingly mobile: Upward trend in portable computers and
mobile phones vs. downward trend in desktop computers and fixed line phones.
A. Market
Usage of Devices
Availability of Devices in Households (%)
Year Desktop computer
Portable computer
(Laptop, Tablet,
Netbook)
Mobile phone Game console
Fixed line
telephone
Smart TV
2005 11.6 1.1 72.6 2.9 81.3 -
2010 33.8 16.8 90.5 3.1 56.1 -
2012 31.8 27.1 93.2 4.6 45.5 -
2013 30.5 37.5 93.7 5.0 37.9 7.3
2014 27.6 40.1 96.1 5.6 34.6 12.4
2015 25.2 43.2 96.8 5.3 29.6 20.9
2016 22.9 66.0 96.9 5.6 25.6 24.6
Source: Turkish Statistical Institute, 2016
6. 6
A. Market
Broadband Subscribers
Source: BTK (Information and Communication Technologies Authority), 2016
• The growth has been fastest in mobile segment:
CAGR (2010-2015):
• Total: 28%
• Fixed: 6%
• Mobile: 40%
6.0 6.4 7.1 7.6 7.9 8.4 8.9 9.5 9.90.0 2.5
7.2
14.7
19.7
24.2
32.4
39.1
45.3
6.0
8.9
14.3
22.3
27.6
32.6
41.3
48.6
55.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2
Number of Broadband Subscribers
Mobile
Fixed
Total
mn
7. 7
• Total number of mobile subscribers is 73.7 mn in 2016 Q2.
• 4.5G is available since April 1, 2016, rapidly replacing 3G.
A. Market
Mobile Subscribers
Source: BTK, 2016
65.8
55.7
42.4
33.9
25.9
20.4
13.6
9.4 6.5
7.1
19.4
31.4
41.8 49.3
58.3 64.3
28.6
38.6
65.8
62.8 61.8
65.3
67.7
69.7
71.9 73.7 73.7
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2
Number of Mobile Subscribers
4.5 G
3G
2G
Total
mn
8. 8
• As the number of mobile subscribers increases, the number of fixed-line telephone
subscribers decreases.
A. Market
Fixed-line Telephone Subscribers
Source: BTK, 2016
17.5
16.5 16.2
15.2
13.9 13.6
12.5
11.5 11.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2
Number of Fixed-line Telephone Subscribers
mn
9. 9
• USD 788 mn exports in 2015.
• Main destinations of exports (2015): Azerbaijan, USA, Northern Cyprus, UK, UAE.
B. Exports
Exports
Source: TUBISAD, 2016
Information
Technologies -
Software
490
62%
Communication
Technologies -
Hardware
150
19%
Information
Technologies -
Hardware
84
11%
Information
Technologies -
Service
65
8%
ICT Exports, 2015
TRY mn, % Share
10. 10
• As of Sep. 2016:
• 64 technoparks, 51 are active
• 4,217 companies in total, 182 are foreign capital
• 41,172 employees in total, 33,293 are R&D staff
• 29,317 projects completed and in-progress
• TRY 35 bn* sales volume, USD 2.4 bn exports volume
C. Technoparks
Statistics
* EUR 1 = TRY 3.3608 as of Sep. 30, 2016
Source: Ministry of Science, Industry and Technology, 2016
Software , 37%
Computer and
communication
technologies
, 17%Electronics , 8%
Manufacture of
machinery and
equipment , 6%
Other , 32%
Distribution of Companies in Technoparks by
Segments
11. 11
• By the end of 2023:
• Earnings derived from software development, design and R&D activities are exempt from
income and corporate taxes.
• Sales of application software produced exclusively in technoparks are exempt from VAT.
• Wages of R&D, design and support personnel are exempt from all taxes by the end of 2023.
• 50% of the employer’s share of the social security premium will be paid by the government.
• Investments required for the production of the technological products generated as a
result of R&D or design projects conducted in the zone, can be carried out within the
zone, if eligible.
• Customs duty exemption for imported products and stamp duty exemption for related
documents within the scope of software development, R&D, innovation and design
projects.
C. Technoparks
Advantages
Source: Investment Support and Promotion Agency (ISPAT) and related legislation, 2016
12. 12
• Turkcell is the main mobile network operator.
• TTNet is the leading internet service provider.
D. Main Companies
Main MNOs & ISPs
Source: BTK, 2016
TTNet,
70.4%
Super-
online,
18.2%
Vodafone
Net, 4.5%
Dogan TV
Digital, 3.4
%
Other, 3.5
%
Market Shares of Main ISPs, 2016 Q2
(By Number of Subscribers)
Turkcell,
44.2%
Vodafone,
31.3%
Avea, 24.5
%
Market Shares of Main MNOs, 2016 Q2
(By Number of Subscribers)
13. 13
D. Main Companies
Largest ICT Companies
Company Name Net Sales, TRY mn, 2015 Number of Employees
Turk Telekomunikasyon 14,522.9 34,147
Turkcell Iletisim 12,769.4 16,649
Foxconn TR Teknoloji 1,012.1 NA
Netas Telekomunikasyon 1,009.0 2,204
Turksat Uydu Haberlesme 846.2 989
Koc Sistem Bilgi ve Iletisim 690.8 1,190
Oracle Bilgisayar 612.0 NA
Lenovo 536.0 NA
D-Smart 500.4 NA
Sentim Bilisim 366.0 570
Alcatel Lucent Teletas 330.3 523
Biotekno Butunlesik 325.6 NA
NCR Bilisim 313.2 331
EUR 1 = TRY 3.021 in 2015
Source: Fortune and Capital magazines, 2016
14. Confidentiality
Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all
information to be handled confidentially, especially regarding the sources used.
Liability
FMConsulting receives information and data from third parties and presents the gathered data to its
customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com