In this paper we aimed to explain industry 4.0 and its effects on digital economy. Digital economy has been expanded as a topic in economics since the rising of internet and broadband effects on the social and economic life. We are entering of an era where the digitalization of things like houses, business, machines and called as digital economy. Digital economy transforms industry, agriculture and services sector very rapidly. Digital skills in terms of education and businesses must be obtain for a sustainable economy. This skills contain digital competences focused on big data analytics and digital manufacturing technologies. Turkey should exploit the full potential of the digital economy Which depends on technology and knowledge.The digital economy offers great opportunities for small and medium size firms in the manufacturing, agriculture and service sectors.