SME Business Operations Software Market and Competitive Environment Report

August 2021

The Turkish SME business operations software market is formed of players that develop and sell a diverse set of enterprise software for small and medium companies of all sizes which totaled 3.3 million companies in Turkey in 2020. The total market consists of three sub-markets, namely, EAS for SMEs, Cloud pre-accounting and e-Transformation for SMEs.

SME business operations software market

EAS for SMEs

Used by SMEs to support business operations such as accounting, financial management, order and customer management, manufacturing, etc.

Cloud pre-accounting

Applications used to collect, register and monitor financial transactions with the objective of tracking balances prior to sending to accountants.

e-Transformation (module + token)

Applications offering electronic solutions enabling secure circulation of information (i.e. invoices, ledgers, etc.) between senders and recipients under Revenue Administration provisions (GİB).

SME business operations software market main characteristics

Significant room for growth

The market has significant growth potential and is forecasted to grow with a CAGR of 28% in TRY terms until 2026

Advancement through the industry maturity framework

In terms of EAS market maturity, Turkey is in Phase 2 and is moving towards Phase 3.

Highly affordable software

The products offered in the market are affordable solutions that can be easily accessed by SMEs.

High recurring revenue

The market has been shifting from non-recurring to recurring revenue, contributing to the overall profitability of software vendors

High profitability

Market is profitable due to high software stickiness, high retention and customer lifetime value

KOBİ iş operasyonları yazılımı pazar büyüklüğünün gelişimi (milyon TL)

SME business operations software market is expected to grow by 28% between 2020 and 2026, supported by the growth of three sub segments.
EAS for SMEs market is expected to grow by 21% (historical real growth of 7% versus forecasted real growth of 10%), mainly driven by a s urge of businesses generating significant data (e.g. e-commerce, fintech) and growth of the e Transformation user base.
The Cloud pre accounting market grew from an almost non existent base and is expected to grow by 54% going forward. The main driver of growth is growing penetration enabled by increasing software and SaaS adoption and SME digitalization.
The e Transformation market showed a significant increase in 2019 and 2020 driven by the regulation change. In 2023, further regulation changes are expected.

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In summary,

we expect Turkish EAS market to grow significantly, backed by the increasing number and digitalisation of SMEs, growth in e-Transformation regulations, a maturing industry and economic growth. Thus, going forward, we foresee favorable market conditions for EAS providers in Turkey.