Turkey Smart Cities Market Research Report 2023

Turkey Smart Cities Market Synopsis

Turkey Smart Cities Market Size Was Valued at USD 730 Million in 2022, and is Projected to Reach USD 1440 Billion by 2030, Growing at a CAGR of 10.18% From 2023-2030.

Turkey is actively investing in the development of smart cities to transform the urban landscape. A smart city combines digital technologies and data solutions to improve various aspects of city life, such as transportation, energy management, waste management, public safety, and citizen engagement. 

• One example of a smart city project in Turkey is the deployment of smart transportation systems to improve traffic flow and public transportation. Using real-time data and advanced analytics, the city can optimize traffic lights and transit routes, reduce traffic congestion, and improve the overall commuting experience for residents.
• Another part of Turkey's smart city efforts is related to energy efficiency. The country has been exploring smart grid solutions and energy management technologies to optimize energy consumption, promote the use of renewable energy sources, and reduce carbon dioxide emissions.
• In addition, Turkey has been working to implement smart waste management systems. Using sensors and data analysis, the city can optimize waste collection routes, improve recycling and ultimately reduce environmental impact.
• In addition to improving infrastructure, Turkey wants to increase citizen engagement. Turkey is actively investing in the development of smart cities to transform its urban landscape. A smart city combines digital technologies and data solutions to improve various aspects of city life, such as transportation, energy management, waste management, public safety, and citizen engagement. One example of a smart city project in Turkey is the deployment of smart transportation systems to improve traffic flow and public transportation. Using real-time data and advanced analytics, the city can optimize traffic lights and transit routes, reduce congestion, and improve the overall commuting experience for residents.

Top Key Players:

"Turkcell (Turkey), Vodafone (UK), Türk Telekom (Turkey), Ericsson (Sweden), Siemens (Germany), Huawei (China), KoçSistem (Turkey), Yapı Kredi Teknoloji (Turkey), Innova (Turkey), Vestel (Turkey), Enerjisa (Turkey), STM Savunma Teknolojileri Mühendislik ve Ticaret A.Ş. (Turkey), Argela (Turkey), Bilgin İletişim (Turkey), Logo Yazılım (Turkey), Netas (Turkey), SAP SE (Germany), Fujitsu (Japan), HP Enterprise (HPE) (US), Bosch (Germany), and Other Major Players"

Turkey Smart Cities Market Trend Analysis

Increasing Tourism & Hospitality

• Tourism is a very important sector in Turkey and has a significant impact on the Turkish economy. Smart city initiatives that improve the tourist experience and create more attractive destinations can lead to increased tourism revenue, job creation, and economic growth.
• The influx of tourists places additional demands on the city's infrastructure, including transport systems, public space, and institutions. Smart city projects can meet these challenges through smart traffic systems, smart parking solutions, optimization of waste management, and real-time monitoring of public services. This improves efficiency and better use of resources, ensuring a perfect experience for tourists and residents.
• Tourists, especially international travelers, expect seamless digital connectivity during their visit. Smart cities invest in robust digital infrastructure such as high-speed internet, Wi-Fi hotspots, and mobile apps to provide travelers with easy access to information, navigation, and online services.

Improving its Digital Infrastructure

• By investing in digital infrastructure, Turkey can ensure extensive and reliable connections in its cities. This improved connectivity is critical to the successful deployment of various smart city technologies because it enables seamless data transfer and real-time communication between devices and systems.
• A robust digital infrastructure forms the backbone of the Internet of Things (IoT) and data analytics applications. Smart city projects rely heavily on IoT devices and sensors to collect data from various sources such as traffic patterns, energy consumption, and waste management. A well-developed digital infrastructure can process the huge amount of data produced and support data analysis to provide valuable information for urban planning and decision-making.
• Digital infrastructure enables the introduction of smart services such as smart transport, smart healthcare, and smart energy management. These services require high-speed Internet, cloud computing, and reliable communication networks to function optimally.

According to the Graph, the revenue growth of Consumer IoT (Internet of Things) in Turkey from 2019 to 2022, as shown in the provided data, demonstrates a positive upward trend. The revenue increased from 1.19 billion US dollars in 2019 to 1.35 billion US dollars in 2022, indicating a steady expansion of IoT adoption among consumers in the country.

The growth in Consumer IoT revenue in Turkey supports the notion that the smart city market in the country is also evolving and expanding. As consumer awareness and adoption of IoT technologies increase, the demand for comprehensive and interconnected smart city solutions is likely to follow suit, driving the continued growth and advancement of the Turkey Smart Cities market.

Turkey Smart Cities Market Segment Analysis

Smart Cities market is segmented into the Solution and Service, Component, Level, and End-user. By Solution and Service, the Smart Mobility Management segment is Anticipated to Dominate the Market Over the Forecast Period.

• The smart mobility management segment is expected to play a leading role in driving the growth of the smart cities market in Turkey during the forecast period. The latest projects implemented in various cities in Turkey show the country's growing attention to smart transportation solutions.
• For example, Ankara has introduced smart bus stops, an online traffic density map, and an online tracking system for fire trucks. Izmir has a state-of-the-art traffic management system that includes intelligent intersections, traffic density mapping, and fully automated parking systems. Electronic payment cards have also been launched in Turkey's major cities to facilitate seamless transport between different modes of transport such as ferries, buses, trains, and metros. In addition, several cities have introduced shared bicycle systems and electric scooter systems, promoting ecological and easy-to-use modes of transportation.
• These efforts underscore Turkey's commitment to improving transportation efficiency, reducing traffic congestion, and providing residents and visitors with a better mobility experience. With smart mobility solutions, the country aims to increase sustainability, minimize environmental impacts, and create more livable urban environments.

Turkey's Smart Cities Market Country Analysis

• Istanbul holds a dominant position in the Turkey smart city market due to several compelling factors. As Turkey's largest city with a population exceeding 15 million, Istanbul serves as a major economic and cultural hub, attracting both residents and tourists alike.
• Over recent years, Istanbul has made substantial investments in smart city technologies, propelling it to the forefront of advanced smart cities globally. Among its successful smart city projects is a sophisticated traffic management system that employs sensors to monitor and optimize traffic flow in real-time, an efficient water management system that employs sensors to monitor water consumption and detect leaks, and a smart lighting system that adjusts illumination based on natural light levels.
• Istanbul's commitment to smart city development, backed by a strong economy and a culture of innovation, has been pivotal in maintaining its dominance in the market. The city's rich ecosystem includes universities and research institutions actively engaged in developing cutting-edge smart city technologies, further strengthening its position as a trailblazer in the field.

COVID-19 Impact Analysis on Turkey's Smart Cities Market

• The COVID-19 pandemic has highlighted the importance of digital technologies and connections in crisis management and maintaining essential services. As a result, Turkey's smart cities could focus even more on accelerating digital transformation. This could include expanding digital infrastructure, promoting e-government services, and using smart city solutions to manage public health and safety during a pandemic.
• Covid-19 has led to changes in movement patterns as people adapt to remote work, social distancing, and restrictions on public transport. The smart mobility segment may have seen changes in demand and priorities, with more emphasis on contactless payment methods, enhanced sanitation measures in public transport, and the integration of smart technologies to manage movement during lockdowns and curfews.
• The pandemic has highlighted the importance of telehealth and telemedicine solutions. Smart health initiatives in Turkey's smart cities could be expanded to provide telehealth services, remote patient monitoring, and digital health platforms to ensure continued access to healthcare during the pandemic.

Top Key Players Covered in Turkey Smart Cities Market

• Turkcell (Turkey)
• Vodafone (UK)
• Türk Telekom (Turkey)
• Ericsson (Sweden)
• Siemens (Germany)
• Huawei (China)
• KoçSistem (Turkey)
• Yapı Kredi Teknoloji (Turkey)
• Innova (Turkey)
• Vestel (Turkey)
• Enerjisa (Turkey)
• STM Savunma Teknolojileri Mühendislik ve Ticaret A.Ş. (Turkey)
• Argela (Turkey)
• Bilgin İletişim (Turkey)
• Logo Yazılım (Turkey)
• Netas (Turkey)
• SAP SE (Germany)
• Fujitsu (Japan)
• HP Enterprise (US)
• Bosch (Germany), and Other Major Players

Key Industry Developments in the Turkey Smart Cities Market

In June 2023, ZTE Corporation, a global leading provider of information and communication technology solutions, announced that on June 14, Türk Telekom conducted the launch of the next-generation TV platform Tivibu, based on its largest IPTV/OTT platform in Türkiye, in cooperation with ZTE and Netaş.

In June 2023, Fujitsu announced the successful completion of a year-long pilot project which began in January 2022 for its proprietary “ConnectionChain” blockchain technology with the Asian Development Bank, blockchain vendor ConsenSys Software Inc., R3, and SORAMITSU, LTD demonstrating its effectiveness in streamlining and enhancing the safety of cross-border transactions (1) of financial securities.