Turkish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
Turkish military expenditure is anticipated to register a CAGR of 18.13% over the forecast period. Turkish military stands at US$14 billion in 2019, and registered a compounded annual growth rate (CAGR) of 4.04% during the historic period. The country’s strained relationship with Greece, persistent threats from the Kurdish Workers’ Party (PKK), active participation in peacekeeping missions, and the focus on the indigenization and Turkification of defense industry drove defense expenditure during the historic period.
With this trend expected to continue, expenditure is anticipated to register a CAGR of 18.13% over the forecast period to value US$29.8 billion in 2024. As a percentage of GDP, the country’s defense expenditure will average 2.2% over the forecast period compared to an average of 1.7% recorded during the historic period.
The capital expenditure allocation, which stood at an average of 33.9% during the historic period, is projected to increase to an average of 40.4% over the forecast period. This is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country’s indigenous defense industry. Various procurements that are expected to fuel the growth of capital spending over the forecast period include multi-role aircraft, missile defense systems, corvettes, and main battle tanks (MBTs).
Turkish homeland security (HLS) expenditure stands at US$5.3 billion in 2020 and is projected to reach US$7.8 billion in 2024, registering a CAGR of 10.32% over the forecast period. Expenditure is driven by the threat of separatists and extremists, illegal immigration, drug trafficking and the country’s dispute with Syria.
Aircraft accounted for the largest expenditure during 2014-2018, with the US being the largest supplier. Turkish defense imports were highest in 2014 and 2018. Turkey procured Airborne Early Warning and Control (AEW&C) aircraft and in 2014 acquired 737-700 Peace Eagle Aircraft. Other significant import partners include South Korea, Spain, and Italy. Sensors, artillery, missiles, engines, naval vessels, naval weapons, armored vehicles and satellites were other key imports during 2014-2018. Similarly, arms exports recorded a gradual increase during the historic period and armored vehicles accounted for the majority of defense exports, with UAE topping the list of defense exporters during 2014-2018.
The report “Turkish Defense Industry - Attractiveness, Competitive Landscape and Forecasts to 2024” provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news. This report offers detailed analysis of the Turkish defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular the report “Turkish Defense Industry - Attractiveness, Competitive Landscape and Forecasts to 2024” provides an in-depth analysis of the following:
Companies Mentioned: Lockheed Martin, Lockheed Sikorsky, Korean Aerospace Industries, Boeing (McDonnell Douglas), Samsung Techwin, Hyundai Rotem, Howaldtswerke-Deutsche Werft (HDW)- Thyssenkrupp Marine Systems, BAE, General Atomics Aeronautical Systems, Otokar,, Roketsan, Makina ve Kimya Endüstrisi Kurumu (MKEK), Aselsan, Turkish Aerospace Industries (TAI), Havelsan, Tusas Engine Industries (TEI), FNSS Defense, Systems Company, Istanbul Shipyard
Scope
Reasons to buy
Summary
Turkish military expenditure is anticipated to register a CAGR of 18.13% over the forecast period. Turkish military stands at US$14 billion in 2019, and registered a compounded annual growth rate (CAGR) of 4.04% during the historic period. The country’s strained relationship with Greece, persistent threats from the Kurdish Workers’ Party (PKK), active participation in peacekeeping missions, and the focus on the indigenization and Turkification of defense industry drove defense expenditure during the historic period.
With this trend expected to continue, expenditure is anticipated to register a CAGR of 18.13% over the forecast period to value US$29.8 billion in 2024. As a percentage of GDP, the country’s defense expenditure will average 2.2% over the forecast period compared to an average of 1.7% recorded during the historic period.
The capital expenditure allocation, which stood at an average of 33.9% during the historic period, is projected to increase to an average of 40.4% over the forecast period. This is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country’s indigenous defense industry. Various procurements that are expected to fuel the growth of capital spending over the forecast period include multi-role aircraft, missile defense systems, corvettes, and main battle tanks (MBTs).
Turkish homeland security (HLS) expenditure stands at US$5.3 billion in 2020 and is projected to reach US$7.8 billion in 2024, registering a CAGR of 10.32% over the forecast period. Expenditure is driven by the threat of separatists and extremists, illegal immigration, drug trafficking and the country’s dispute with Syria.
Aircraft accounted for the largest expenditure during 2014-2018, with the US being the largest supplier. Turkish defense imports were highest in 2014 and 2018. Turkey procured Airborne Early Warning and Control (AEW&C) aircraft and in 2014 acquired 737-700 Peace Eagle Aircraft. Other significant import partners include South Korea, Spain, and Italy. Sensors, artillery, missiles, engines, naval vessels, naval weapons, armored vehicles and satellites were other key imports during 2014-2018. Similarly, arms exports recorded a gradual increase during the historic period and armored vehicles accounted for the majority of defense exports, with UAE topping the list of defense exporters during 2014-2018.
The report “Turkish Defense Industry - Attractiveness, Competitive Landscape and Forecasts to 2024” provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news. This report offers detailed analysis of the Turkish defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular the report “Turkish Defense Industry - Attractiveness, Competitive Landscape and Forecasts to 2024” provides an in-depth analysis of the following:
- The Turkish defense industry market size and drivers: detailed analysis of the Turkish defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Turkish defense industry
Companies Mentioned: Lockheed Martin, Lockheed Sikorsky, Korean Aerospace Industries, Boeing (McDonnell Douglas), Samsung Techwin, Hyundai Rotem, Howaldtswerke-Deutsche Werft (HDW)- Thyssenkrupp Marine Systems, BAE, General Atomics Aeronautical Systems, Otokar,, Roketsan, Makina ve Kimya Endüstrisi Kurumu (MKEK), Aselsan, Turkish Aerospace Industries (TAI), Havelsan, Tusas Engine Industries (TEI), FNSS Defense, Systems Company, Istanbul Shipyard
Scope
- Turkish defense expenditure stands at US$14 billion in 2019, and registered a compound annual growth rate CAGR of 4.04% during the historic period.
- The country’s strained relationship with Greece, persistent threats from the Kurdish Workers Party (PKK), active participation in peacekeeping missions, and the reduction in foreign dependency for military equipment procurement, drove defense expenditure during the historic period.
- With this trend expected to continue, expenditure is anticipated to register a CAGR of 18.13% over the forecast period to value US$29.8 billion in 2024. As a percentage of GDP, the country’s defense expenditure will average 2.22% over the forecast period, which is marginally declining compared to an average of 1.70% recorded during the historic period.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Turkish defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Turkish defense industry covering sections including demand drivers, Key Trends , and latest industry contracts
Table of Contents
1. Introduction
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
8. Business Environment and Country Risk
9. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Lockheed Martin
- Lockheed Sikorsky
- Korean Aerospace Industries
- Boeing (McDonnell Douglas)
- Samsung Techwin
- Hyundai Rotem
- Howaldtswerke-Deutsche Werft (HDW)- Thyssenkrupp Marine Systems
- BAE
- General Atomics Aeronautical Systems
- Otokar,
- Roketsan
- Makina ve Kimya Endüstrisi Kurumu (MKEK)
- Aselsan
- Turkish Aerospace Industries (TAI)
- Havelsan
- Tusas Engine Industries (TEI)
- FNSS Defense
- Systems Company
- Istanbul Shipyard
