Economic Transformation of Turkey's ICT Sector and Analysis of Software Market (2015-2024)

Executive Summary

In the digitalization journey of Turkey's economy, the Information and Communication Technologies (ICT) sector has been undergoing a critical transformation process, evolving from a traditional hardware-oriented structure to a software and service-oriented value chain, especially in the last decade (2015-2024). This report examines the size of Turkey's software sector over the years in light of macroeconomic conjecture and global technological trends.

As of 2024, the total size of Turkey's Information and Communication Technologies market exceeded the psychological and economic threshold of 1 trillion TL, reaching 1 trillion 203.5 billion TL. The "Information Technologies (IT) Software" category has surpassed hardware and service categories to become the largest and fastest-growing component of the sector, reaching a size of 339.4 billion TL.

1. Introduction: Turkey's Informatics Ecosystem

TÜBİSAD data examines the sector under two main blocks: "Information Technologies" (IT) and "Communication Technologies" (CT). Recent data shows that the market balance has shifted from Communication Technologies to Information Technologies, and especially in favor of software. According to 2024 data, the Information Technologies market reached 683.7 billion TL, surpassing the Communication Technologies market, which is at the level of 520 billion TL.

2. Turkey Software Sector Market Size by Years

The development of the market over the last ten years has been analyzed by compiling piecemeal data sets.

3. Historical Depth and Periodical Analysis

3.1 2015-2018: End of Hardware Hegemony

In 2018, the IT Software category reached 18.3 billion TL, surpassing the IT Hardware category, which remained at 17.1 billion TL, for the first time. This indicates the end of the "box moving" era and the beginning of the "intellectual labor" era in the sector.

3.2 2019-2021: Pandemic and Digital Necessity

The pandemic made digitalization a necessity and exploded the demand for remote working technologies. In 2021, software exports grew by 62%, and export records were broken with the "nearshoring" effect.

3.3 2022-2024: Inflationary Growth and Trillion-Lira Market

In 2024, the sector exceeded a historical threshold and reached a volume of 1.2 trillion TL. The share of software within the IT market stabilized at around 50%.

4. Dynamics Driving the Software Sector

• Generative Artificial Intelligence (GenAI): Companies are increasing GenAI investments for efficiency and new market share.
• Cloud Computing and SaaS: Transition to subscription models ensures revenue continuity.
• Technoparks: As of 2024, it is the production base of the sector with 105 technoparks and 11,550 companies.

5. Macroeconomic Analysis: Nominal vs. Real Growth

Although the sector grew aggressively in TL terms, real (inflation-adjusted) growth is more stagnant. Exports function as a natural hedge mechanism for companies against currency risk; in 2024, IT Software exports grew by 98%, reaching 103.8 billion TL.

6. Human Resources and Employment

Sector employment reached 246 thousand people with a 5% increase in 2024. 63% of employees are university graduates. The threat of brain drain continues to be one of the biggest risks for the sector.

7. 2030 Vision

The target is to increase software and IT services exports to the level of 30 billion dollars in 2030. It is aimed to increase Turkey's share in the global ICT market, which is 0.72%, to over 1%.