Despite various economic and geopolitical challenges, the global Internet of Things (IoT) market continues to expand, as reported by IoT Analytics.

The number of connected IoT devices is forecast to grow 13% to 18.8 billion by end of 2024, the IoT Analytics' State of IoT Summer 2024 report showed. That would compare to 16.6 billion connected IoT devices registered at the end of 2023, which marked a 15% increase compared to 2022.

The integration of artificial intelligence with IoT (referred to as AIoT) is gaining significant attention, especially in areas like data management and device security.

The technological advancement is enhancing efficiency and fostering a data-driven business culture across sectors such as agriculture, health care, finance and food production.

The rise in connected devices due to IoT technology is creating substantial and multifaceted impacts on economic growth, bolstering the economy both directly and indirectly.

Increased investment in startups

TT Ventures, a venture capital arm of Türk Telekom, one of Türkiye's leading telecommunications and technology companies, is driving the development of big data analytics and AI applications through data streams from IoT devices.

Türk Telekom Ventures General Manager Muhammed Özhan mentioned that they invested in Evreka, a startup focused on digitizing waste management and recycling processes using artificial intelligence and data analytics technology.

"We are committed to supporting initiatives that not only elevate Türkiye on a global technological scale but also add value to the world and contribute to a better future."

Evreka's suite of products, including Evreka 360, Waste Dashboard and Evreka AI, fully digitalizes waste management processes, enhancing waste efficiency and recycling for client companies.

Emergence of new professions

The development, management, and security of IoT devices are creating a demand for new expertise, leading to increased employment and economic growth.

IoT also necessitates upskilling the existing workforce, resulting in more educational and development programs that make the labor force more competent. The growing number of connected devices boosts demand for digital services, creating new opportunities within the digital economy.

IoT technologies enable countries and regions to become more competitive in the global market, advancing their leadership in sectors such as industry, agriculture, health care and others.

Smart cities, remote health care

Türk Telekom is working on smart city infrastructure across many provinces in Türkiye. Through its "Smart Cities Platform," initiated some time ago, the company has led the transformation in several cities.

The integration of AI and IoT is making smart sensors and autonomous systems more prevalent, particularly in mobility solutions. These technologies will enhance operational efficiency in the transportation and logistics sectors. Real-time data processing will accelerate decision-making processes, especially in smart city projects.

In the health care sector, IoT devices are improving remote patient monitoring systems, while AI-powered diagnostic systems and personal health devices are making health care more accessible. The increasing use of IoT devices in health care will highlight the need for new regulations around security and data privacy.

In agriculture, IoT sensors will enhance productivity, particularly in irrigation systems, soil monitoring and crop management, playing a significant role in traceability and quality control in the food supply chain.

The expansion of 5G technology will enable faster and more reliable connections for IoT devices, supporting the development of new service models in the telecommunications sector.

Türkiye's 1st private chauffeur service platform launches investment round

Motovale, the first private chauffeur service platform in Türkiye, is set to expand beyond the country's borders with its new, more scalable business model powered by a mobile application.

The company will be entering a new investment round in September to fund this growth.

Over 1 million traffic accidents occurred in Türkiye in 2023, resulting in 235,071 fatalities, according to research by Ankara University and the Turkish Statistical Institute (TurkStat). Speed, alcohol, substance abuse and lack of sleep were identified as the leading causes.

With a mission to reduce these numbers, Motovale encourages car owners to be more cautious and promises users a safer journey.

It has pioneered Türkiye's on-demand private chauffeur service, creating a new category in the transportation sector.

Now, with its evolving application platform which it has been developing since 2023, the company is actively seeking new investors to expand its impact rapidly.

Since its launch, Motovale has attracted 7,000 users and completed over 50,000 trips, covering more than 1 million kilometers (621,371 miles).

After establishing its presence in Istanbul, the platform has also started offering services in Bodrum, one of Türkiye's most popular summer vacation destinations.

Following its funding round, the company plans to extend its services to other major cities in Türkiye. In the medium term, Motovale aims to open an office in the Netherlands and take its pioneering service abroad.

Ensuring safe journeys

Speaking about the investment round, Motovale co-founder Tunç Akdoğan said they made a rapid entry into the sector in 2009 with a unique and innovative business model, opening a new market.

"Today, with our new mobile application platform, users can easily request a trip and enjoy the pleasure and comfort of traveling in their own car, safely. Moreover, our platform allows us to create employment opportunities for professional drivers in our country, in line with our high competence standards," said Akdoğan.

Orkun Saitoğlu, CEO of Iyzico, which has established a strong and secure pay infrastructure for Motovale application, expressed his enthusiasm about future prospects for the company.

Saitoğlu, who is also a member of the Motovale advisory board, said, "As a brand that has contributed to the digitalization of many companies, we are pleased to collaborate with a company like Motovale, which is committed not only to making life easier for its users but also to making it safer."

"With its visionary approach to developing its service and the sector as a whole, I believe Motovale will make a name for itself not only in Türkiye but also globally."

Global fintech funding plunges amid challenges, high rates

Global investments in financial technology companies, or fintechs, decreased from $62.3 billion in the second half of 2023 to $51.9 billion in the first half of this year, according to KPMG's "Pulse of Fintech" report.

Regionally, the largest investments were made in the Americas and Europe. In terms of sectors, payments took the lead with $21.4 billion, while artificial intelligence continues to be a significant priority for investors.

The report highlights the challenging outlook for the global fintech market, affected by ongoing concerns over geopolitical uncertainties and high interest rates. The total amount marks the lowest six-month fintech funding level since the first half of 2020.

Declines in, U.S., Europe

The report showed noticeable declines in fintech investments across all regions.

In the Americas, the total amount dropped from $38.5 billion to $36 billion, in Europe, the Middle East, and Africa (EMEA) from $19.1 billion to $11.4 billion, and in the Asia-Pacific (ASPAC) region from $4.6 billion to $3.7 billion.

KPMG Türkiye's Fintech and Digital Finance Leader Sinem Cantürk said the figures showed that fintech investors acted cautiously.

"Mature, stable markets attracted the largest fintech deals, while investors, with few exceptions, continued to avoid large deals. AI, which enhances business efficiency and reduces costs, continued to attract attention, while interest in regtech also persisted, particularly in the EMEA region," said Cantürk.

Major investments

According to KPMG's report, there were only five deals worth over $1 billion in the fintech sector globally in the first half of 2024, all of which were acquisitions.

Four of these took place in the Americas: Worldpay in the U.S. for $12.5 billion, EngageSmart for $4 billion, Nuvei in Canada for $6.3 billion, and Plusgrade for $1 billion. The United Kingdom was the fifth with the $4 billion acquisition of IRIS Software Group.

Sector-wise, the payments sector continued to capture the largest share, with $21.4 billion. Meanwhile, regulatory technology, or regtech was the only major fintech sub-sector that saw an increase in investment, with $5.3 billion, already surpassing the total amount for 2023.

New investors set eye on AI startups

Innovations in artificial intelligence continue to shape nearly every sector and the future of humanity. From financial services to health care, education to e-commerce and agriculture to logistics, AI's influence is rapidly expanding.

The continuously evolving technology plays a crucial role in enhancing efficiency and improving user experience. In recent years, AI's various use cases have also come to the forefront in capital markets.

Onur Topaç, CEO of Inveo Investment Holding, stated that they closely monitor AI through Gedik Yatırım and Inveo Ventures and are investing to be at the forefront of this field.

"Artificial intelligence offers a great opportunity to create a more sustainable financial ecosystem on behalf of all stakeholders," said Topaç.

He mentioned that by integrating new developments and technologies into their business processes, they are seeking to take a leading role in the industry. The AI unit of Gedik Yatırım develops strategies using solutions like data analytics, machine learning, and large language models, allowing for personalized services for investors.

AI as strategic investment

Inveo Ventures is investing in the transformative power of AI, according to Topaç.

"As Inveo Ventures, we closely follow the innovations brought by AI to the entrepreneurial ecosystem and aim to add value to it," he noted.

Companies in Inveo Ventures' portfolio – B2Metric, Novus, and Cerebrum Tech – develop innovative AI-based solutions for various sectors such as marketing, sales, finance, customer support, customer analysis, image processing, and the Internet of Things (IoT).

Topaç added, "These companies in our portfolio lead technological advancements and sectoral innovations, supporting the vision of building a more sustainable financial ecosystem."

Türkiye emerges as new competence center for remote work

Citrix, a global leader in digital workspaces that provides solutions to meet the secure remote and hybrid work needs of organizations, has announced plans to continue its growth in Türkiye as an independent region by investing in local employment.

Under the leadership of newly appointed General Manager Sevi Tüfekçi Karahallı, Citrix Türkiye aims to expand its technical and sales teams and invest more in the region.

Outlining the company's new strategy, Karahallı highlighted that they are rapidly growing in Türkiye with their solutions, which are highly valued by customers. She also shared significant insights into their plans for sectors critical to the Turkish economy, such as finance, e-commerce, telecommunications, and the public sector, as well as their support for domestic production.

Citrix, a subsidiary of Cloud Software Group – one of the world's leading technology companies providing cloud-supported, security, and efficiency-focused corporate solutions – has restructured in Türkiye.

Until now, Citrix Türkiye has operated as part of the Middle East or Eastern Europe regions. However, starting at the end of 2024, it will serve as an independent region.

With this transition, Citrix Türkiye, under the leadership of Karahallı, who has over 25 years of experience in technical and sales management in the corporate software sector, aims to further strengthen its local team and partnerships.

With the new era, Citrix plans to increase its technical and sales teams by around 30% in the short term through additional investments, targeting further growth and reaching a much broader customer base.