Report Overview

Strong demand from key industry verticals, such as IT & Telecom, BFSI, retail, and healthcare, to reduce processing time and CAPEX & OPEX is expected to drive the cloud computing market in Turkey at an impressive growth rate during the period between 2022 and 2028.

Turkey Cloud Computing Market - Industry Trends & Forecast Report 2028

Turkey Cloud Computing Market is expected to grow at a CAGR of 21.5% during the forecast period (2022–2028). The market growth is greatly aided by rising internet usage and the proliferation of smart devices across the country. Also, to provide a platform to meet the 5G requirements in the nation, the government established the New Generation Mobile Communication Technology forum, which includes universities, operators, NGOs, and manufacturers. A significant amount of data is being produced as a result of the anticipated deployment of 5G technology and the growth of the telecommunications infrastructure, and this data needs to be properly stored for processing in the future. In addition, the increased number of SaaS start-ups in the country, such as Vispera and Picus Security, is influencing the demand for cloud computing in Turkey.

Cloud Computing - Overview

To provide quicker innovation, adaptable resources, and scale economies, cloud computing, in its simplest form, is the delivery of computing services over the Internet ("the cloud"), including servers, storage, databases, networking, software, analytics, and intelligence. There are many instances of cloud computing applications being used by both companies and consumers. Streaming platforms for audio or video, where the actual media files are stored remotely, are one type of cloud service. Platforms for data storage, such as Google Drive, Dropbox, OneDrive, and Box, would be an additional option.

Turkey Cloud Computing Market Forecast and Trends

Growth Drivers

Reduced infrastructure and storage costs and increased RoI

The upfront implementation and ongoing maintenance costs of on-premises data hosting are a concern for businesses. Additional worries for businesses include downtime issues, staff costs, and electricity costs. The adoption of cost-effective measures to restructure business models has accelerated due to the current competitive environment and global economic conditions. A few other factors that contribute to the adoption of cloud computing services and, ultimately, lower business costs are the shifting business priorities toward digital transformation and the accelerating customer experience. Additionally, the pay-as-you-go model provided by the cloud allows businesses to only pay for the cloud services they use. This would help lower costs.

Growing smart device use and demand for untrusted cloud

The increased use of smart devices, such as smartphones, computers, and laptops to handle expanding data and better data recovery requirements are expected to drive the countrywide distributed cloud market during the forecast period. Additionally, the market growth can be attributed to the escalating adoption of microservice-based software development in various industrial sectors and the rising demand for data-driven technologies, such as artificial intelligence (AI) and the Internet of Things (IoT).

Increasing use of hybrid cloud services

Businesses with existing infrastructure are embracing cloud computing services and are prepared to use a hybrid strategy so they can benefit from both on-premises and cloud services. Due to their significant advantages, such as no upfront infrastructure setup fees and the availability of computing services on demand, SMEs are largely adopting cloud computing services. These elements are influencing the expansion of hybrid cloud services in businesses. Improved workload management, greater security and compliance, and effective integration within DevOps teams are all advantages of the hybrid cloud. Additionally, it provides the flexibility to switch from on-premises to the cloud or between clouds and has the necessary scalability to outperform competitors.

Restraints

Cloud’s vulnerability to cyberattacks

Cloud computing services assist businesses in increasing operational effectiveness and cutting costs. Additionally, these services have several benefits, such as flexibility, scalability, and agility. The data stored in the cloud is still vulnerable to cyberattacks even though the cloud provides several advantages and security measures. The amount of data being produced is growing, and businesses are starting to take more steps toward digital transformation. Enterprise data is exposed to risk from cyberattacks, such as Spectre, Meltdown, cloud malware injection attacks, account or service hijacking, and man-in-the-cloud attacks. Threats like these could limit the growth of cloud computing market in Turkey.

Impact of COVID-19 on Turkey Cloud Computing Market

To protect employee well-being and maintain operational efficiency, many businesses across all verticals have adopted the work-from-home model, which has increased demand for Software-as-a-Service (SaaS)-based collaboration solutions. Additionally, well-known SaaS-based collaboration tools are gaining popularity, including Tencent Meeting, Google Hangouts, Cisco Webex, Slack, Zoom, and Ding Talk. The demand for streaming services, such as Netflix, Hulu, Amazon, Disney+, Twitch, YouTube, and Apple TV, has significantly increased as a result of the country lockdowns, which have caused the majority of people to stay at home. The demand for IaaS to meet consumer demands has risen as a result of the explosion in Video-on-Demand (VoD). Businesses across the country are expanding their product lines to meet customers' evolving needs.

Turkey Cloud Computing Market - By Service

Based on service, Turkey cloud computing market is segmented into Platform as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS). The SaaS segment accounted for more than 54% of total revenue. The popularity of SaaS can be attributed to its low costs, ease of maintenance, and ease of deployment. According to industry estimates, the number of businesses moving to the cloud is increasing, with 73% of enterprises moving the majority of their applications to the SaaS platform. Remote working has increased demand for SaaS services that allow collaborative teams to access previously centralized data and analytics. SaaS products are expected to grow rapidly in the coming years as their Total Cost of Ownership (TCO) approaches that of on-premises deployment mode.

Turkey Cloud Computing Market – By Deployment Mode

Based on deployment mode, Turkey cloud computing market is segmented into Private, Public, and Hybrid. During the forecast period, the hybrid cloud segment is expected to contribute more to the growth of the cloud computing market. Organizations are adopting hybrid clouds due to the growing user and resource mobility, ongoing application migration to the cloud, and the appearance of more advanced threats. Healthcare, BFSI, and government sectors that place a high priority on compliance, security, and customer experience choose the hybrid deployment model. Leading cloud providers are concentrating on enhancing their presence in the hybrid cloud market. All these factors boost the growth of the Turkey cloud computing market during the forecast period.

Turkey Cloud Computing Market - By End User

Based on end user, Turkey cloud computing market is segmented into IT and Telecom, Retail and Consumer Goods, BFSI, Healthcare, and Others. Among these, BFSI dominates the market. Banks have adopted digital transformation as a result of an increase in online banking activity in the BFSI sector, with cloud computing playing a crucial part in this strategy. In the BFSI industry, cloud computing has aided businesses in cutting costs, fostering innovation, enhancing client relationships, and expanding flexibility. The COVID-19 pandemic has changed the way that people regularly communicate and conduct business. The expansion can be attributed to the use of cloud services for consumer data storage and management. Among other services, payment gateways, online fund transfers, digital wallets, and unified customer experiences could play a significant role in the BFSI sector and support the overall shift to cloud deployment.

Competitive Landscape

Prominent players in Turkey cloud computing market include Sparkle Turkey, KocSistem, ITGLOBAL.COM, VNGRS, Microsoft Corporation, Alibaba Cloud, IBM Corporation, AGMLab, Skyloop Cloud, and Orange Group. The market is highly fragmented with the presence of several companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. These companies use various strategies, including alliances, agreements, mergers, and partnerships.

Scope of the Report

By Service

• Platform as a Service

• Software as a Service

• Infrastructure as a Service

By Deployment

• Private

• Public

• Hybrid

By Application Type

• Small and Medium-sized Enterprises (SMEs)

• Large Enterprises

• Government

By End User

• IT and Telecom

• Retail and Consumer Goods

• BFSI

• Healthcare

• Others