AI and Cloud Lead the Future: KPMG Predicts $1 Trillion Tech Shift

A new KPMG Türkiye report reveals a transformative decade ahead for the technology, media, and telecommunications (TMT) industries, forecasting explosive growth driven by artificial intelligence (AI), cloud computing, and next-generation connectivity. According to the report, the global generative AI market—valued at $20.47 billion in 2023—is expected to surge to an astonishing $442 billion by 2031, reshaping business models and redefining productivity across every major sector.

The report, titled “TMT Sector Agenda Report,” analyzes global trends and Turkey’s financial outlook within these industries. It highlights that cloud investments will surpass $1 trillion by 2030, while data center capacity is projected to quadruple by 2028. This rapid expansion underscores a digital revolution that extends far beyond traditional IT.

KPMG: Innovation Will Define Future Competitiveness

Gökhan Mataracı, Partner and Head of Innovation and Technology Advisory at KPMG Türkiye, emphasized the transformative nature of the TMT sector:

“The TMT sector is not just reshaping business models but also the future of societies, economies, and institutions. AI, cloud technologies, and 5G–6G infrastructure have become core factors determining global competitiveness.”

He added that KPMG sees innovation not merely as optimization but as a roadmap for new value chains, business models, and sustainable growth. Technologies like AI and 6G are redefining how humans and machines interact, forming the foundation for the next wave of industrial and digital transformation.

Generative AI and Language Models Drive Growth

The report details the meteoric rise of generative AI (GenAI) and large language models (LLMs). The GenAI market, which was just $7.69 billion in 2021, tripled by 2023 and is forecast to hit $66.89 billion by 2025 and $160.83 billion by 2027, before reaching $442.07 billion by 2031.

Similarly, the LLM market—valued at $5.72 billion in 2024—is projected to expand at a compound annual growth rate (CAGR) of 35.9% between 2025 and 2034, exceeding $123 billion by the end of that period.

A recent survey cited in the report shows that 80% of executives plan to increase GenAI investments, while 75% express confidence in its return on investment (ROI)—evidence of strong trust in AI’s long-term profitability.

Cloud and Data Center Expansion Accelerates

KPMG notes that cloud spending is nearing $800 billion in 2024 and will exceed $1 trillion by 2030, fueled largely by AI-driven demand. Companies are increasingly building and scaling their AI platforms through cloud infrastructure, making it the backbone of digital innovation.

The data center sector is also expanding rapidly, with hyperscale providers expected to double their number of facilities within four years. Total capacity could increase fourfold by 2028, driven by corporate demand for AI computing power and global data growth.

Private investment dominates the field, accounting for 96% of total spending, while the public sector remains at 4%. The overall market is projected to maintain strong, AI-fueled growth through 2030, reinforced by digital transformation initiatives and large-scale infrastructure investments.

6G on the Horizon: Beyond Connectivity

The report stresses that 5G and 6G are not just about speed—they represent a structural transformation of business models. While 5G continues to evolve, 6G promises speeds of up to 1 terabit per second and ultra-low latency, enabling seamless machine-to-machine and human-to-machine communication.

Expected to debut in the early 2030s, 6G will deliver AI-powered, self-optimizing networks capable of predictive data processing and maximum energy efficiency, unlocking new frontiers for VR/AR, edge computing, and autonomous systems.

Turkey’s TMT Sector: Profitability Surges Over a Decade

The report also provides a detailed analysis of Turkey’s domestic TMT market. As of 2023, the sector comprises 38,142 firms employing 264,349 people, generating a combined profit of ₺105 billion by the end of the year.

Between 2009 and 2023, profitability in the technology segment soared by 2,130%, marking it as the fastest-growing vertical.

• Technology: Net profits rose from ₺4 billion in 2009 to ₺91 billion in 2023.

• Media: Expanded from ₺375 million to over ₺7 billion.

• Telecommunications: Reversed a ₺150 million loss into nearly ₺7 billion in profit.

This remarkable transformation underscores Turkey’s growing role in the global digital economy and the strong investment momentum within its technology-driven industries.

A Decade of Digital Acceleration Ahead

KPMG’s report concludes that the convergence of AI, cloud computing, and next-generation networks will define the next phase of global competition. For Turkey and other emerging economies, early adoption and innovation leadership will determine who shapes the value chains of the future.

“AI is no longer just about productivity—it’s about creating new markets, new functions, and entirely new possibilities,” Mataracı noted, framing the 2020s as the defining decade for digital transformation.