Defense Industry and Aerospace Exports: Turkey's Rising Star

The Turkish Defense Industry: A Rising Star on the Global Stage

Turkey is one of the countries that has undergone the most remarkable transformation in the defense industry and aerospace sector worldwide over the past two decades. In the early 2000s, Turkey met 80 percent of its defense needs through imports; today, it has reversed this ratio, raising its domestic content rate above 80 percent.

In 2025, Turkish defense and aerospace sector exports reached $7.2 billion, recording a 25 percent increase over the previous year. Compared to the $1.7 billion in exports recorded in 2015, this figure clearly demonstrates the immense transformation the sector has undergone. Turkey has entered the top 10 countries in the global defense exporters ranking.

Turkey's defense industry is one of those rare success stories of transformation from scratch into a global powerhouse. This transformation was achieved through a combination of strategic vision, strong R&D investments, and a young engineering workforce. The global success of the Bayraktar TB2 UAV has become the symbol of this transformation.

Sector Scale and Economic Impact

General Overview

The Turkish defense and aerospace sector surpassed $25 billion in revenue in 2025. More than 80,000 people are directly employed in the sector, a figure that exceeds 250,000 when indirect employment is included.

Projects conducted under the coordination of the Presidency of Defense Industries (SSB) have ensured the sector's planned and coordinated growth. As of 2025, the value of the active project portfolio has exceeded $75 billion.

Sector Structure

The Turkish defense industry ecosystem has a layered structure comprising large prime contractors, mid-sized subcontractors, and small-scale technology firms. More than 2,000 companies operate within the ecosystem, a significant proportion of which are SMEs.

Major Defense Companies and Product Portfolios

ASELSAN

ASELSAN is Turkey's largest defense electronics company and ranks among the top 50 defense firms globally. In 2025, ASELSAN's revenue exceeded $7.5 billion.

Main product groups:

• Radar systems: Early warning radars, tracking radars, and fire control radars
• Electronic warfare systems: Signal intelligence, electronic jamming, and cyber defense
• Communication systems: Tactical radios, military communications infrastructure, and satellite communications
• Electro-optic systems: Thermal cameras, laser rangefinders, and night vision devices
• Defense systems: Close air defense, weapons system stabilization
• Transportation systems: Metro, tram, and railway signaling systems (civilian sector)

ASELSAN's export portfolio extends to more than 70 countries. The company's diversification strategy toward civilian sectors has also enabled it to undertake significant projects in energy, transportation, and health technologies.

Baykar Defense

Baykar is a Turkish firm globally recognized for its UAV (Unmanned Aerial Vehicle) technology. The Bayraktar TB2 tactical UAV has become one of the most widely exported UAV systems in the world.

Product portfolio:

• Bayraktar TB2: Tactical class UAV — exported to more than 30 countries
• Bayraktar Akinci: MALE class armed UAV — high altitude, long endurance capability
• Bayraktar Kizilelma: Unmanned combat aircraft — jet-powered, AI-assisted
• Bayraktar TB3: Tactical UAV capable of launching from naval platforms

Baykar's success has positively influenced not only the military domain but also the global perception of the Turkish technology sector as a whole. The company continues to multiply its export revenues year after year.

TAI (Turkish Aerospace Industries)

TAI is Turkey's largest company in the aerospace domain. It designs and manufactures aircraft, helicopters, UAVs, and satellite systems.

Major projects:

• KAAN (TF-X/MMU): Fifth-generation national combat aircraft — Turkey's largest defense project
• HURJET: Jet trainer and light attack aircraft — has successfully completed its maiden flight
• GOKBEY: Multi-role helicopter — for both military and civilian use
• HURKUS: Turkey's first indigenous training aircraft
• ANKA: MALE class UAV — one of the Turkish Armed Forces' primary UAV platforms
• GOKTURK satellites: Reconnaissance and observation satellites
• IMECE: High-resolution observation satellite

TAI also holds significant subcontractor work volume in international civilian and military aviation programs, including the Airbus A320, A330, Boeing 787, and F-35 programs.

Roketsan

Roketsan is Turkey's leading company in rockets and missile systems. The company possesses a broad product range spanning from short-range rockets to ballistic missiles.

Key products:

• SOM: Air-to-ground cruise missile — 250+ km range
• Atmaca: Anti-ship guided missile — the Turkish Navy's primary anti-ship weapon
• HISAR: Air defense missile system (HISAR-A short range, HISAR-O medium range)
• SIPER: Long-range air defense system
• Cirit: Laser-guided rocket — launchable from helicopter and UAV platforms
• MAM (Smart Micro Munition): Precision-guided mini munitions launched from UAVs
• BORA: Tactical ballistic missile system

BMC

BMC is one of Turkey's leading companies in armored vehicle and military truck production:

• Kirpi armored vehicle
• Vuran 4x4 and 8x8 armored vehicles
• Amazon armored vehicle
• Military logistics trucks

FNSS

FNSS (Defense Systems Inc.) specializes in the design and production of armored combat vehicles and engineering vehicles:

• PARS armored vehicle family (6x6 and 8x8)
• KAPLAN medium-weight tank
• ZAHA amphibious armored vehicle

Otokar

Otokar, part of the Koc Group, holds a strong position in military vehicle production:

• ALTAY main battle tank
• ARMA armored vehicle family
• COBRA armored vehicle
• TULPAR tracked armored vehicle

STM

STM (Defense Technologies Engineering and Trade Inc.) operates in the fields of naval platforms, cybersecurity, and tactical mini UAVs:

• Submarine modernization projects
• Unmanned naval vessels
• KARGU kamikaze UAV
• Cybersecurity solutions

Export Achievements and Target Markets

Geographic Distribution

Turkish defense exports are spread across a wide geographic area:

Middle East and North Africa: Qatar, UAE, Saudi Arabia, Oman, Egypt — armored vehicles, UAV systems, and electronic warfare equipment

South and Southeast Asia: Pakistan, Malaysia, Indonesia, the Philippines, Bangladesh — UAVs, naval platforms, and armored vehicles

Central Asia: Kazakhstan, Azerbaijan, Turkmenistan, Uzbekistan — various defense products and training support

Eastern Europe: Ukraine, Poland, Romania — UAV systems and modernization projects

Africa: Nigeria, Ethiopia, Rwanda, Somalia, Togo — armored vehicles, UAVs, and training services

Latin America: Colombia, Mexico, Brazil — armored vehicles and security systems

Flagship Export Achievements

Bayraktar TB2's global reach: Sold to more than 30 countries, the TB2 has revolutionized the UAV market with its battlefield effectiveness. Its use in the Ukraine-Russia conflict, Libya, and the Caucasus has proven the platform's operational success.

ASELSAN's radar exports: Radar and electronic warfare systems have been exported to numerous countries. Products compatible with NATO standards are particularly preferred by allied nations.

Armored vehicle exports: The BMC Kirpi, Otokar COBRA, and FNSS PARS families have entered the inventories of many countries worldwide.

Naval platforms: Turkish shipyards serve international customers on corvette, frigate, and amphibious vessel projects.

Technological Capabilities

R&D and Innovation

The Turkish defense sector is one of the most R&D-intensive industries:

• Sector-wide R&D expenditure-to-revenue ratio exceeds 7 percent
• More than 15,000 R&D personnel are employed
• More than 5,000 active patents are held
• Intensive collaboration programs with universities are maintained

Critical Technology Areas

The Turkish defense industry has developed indigenous solutions across numerous critical technology domains:

• Artificial intelligence and autonomous systems: Autonomous mission planning and target recognition in UAVs
• Composite materials: Advanced composite technologies in aerospace structures
• Micro-electromechanical systems (MEMS): Inertial measurement units and sensors
• Guidance and navigation: GPS-independent navigation and precision guidance technologies
• Engine technologies: Jet and turboprop engine development (TEI)
• Cybersecurity: Military and civilian cyber defense solutions
• Space technologies: Satellite design, manufacturing, and launch capability

Engine Development

Engine technology is one of the most critical areas of the defense industry. TEI (TUSAS Engine Industries) is taking significant steps in this domain:

• Indigenous engine development for the KAAN fighter aircraft
• Helicopter turbine engines
• UAV engines (piston and jet)
• Turboshaft and turboprop engines

Civil Aviation and Space

Civil Aviation Projects

The Turkish aerospace sector is undertaking significant projects in civil aviation alongside its defense products:

• Structural part production for Airbus and Boeing
• Regional passenger aircraft development within TAI
• Helicopter and light aircraft production
• Aircraft Maintenance, Repair, and Overhaul (MRO) services

Space Program

The space program conducted under the coordination of the Turkish Space Agency (TUA) is adding new dimensions to the sector:

• Reconnaissance and observation satellites
• Communication satellites (TURKSAT series)
• National satellite launch system development
• Space station modules
• Lunar mission planning

Future Projections

2030 Targets

The Turkish defense industry has set ambitious targets for 2030:

• Raising sector revenue to $45 billion
• Increasing exports to $15 billion
• Pushing the domestic content rate above 85 percent
• Entering the top 5 in the global defense exporters ranking
• Achieving independent access capability in space technologies

Growth Areas

Unmanned systems: Air, land, and sea unmanned platforms, autonomous systems integrated with artificial intelligence. Turkey is a global leader in this area and has the potential to extend this advantage further.

Cyber defense: Demand for cybersecurity products and services is growing exponentially as digital transformation accelerates.

Space technologies: Satellite production, launch services, and space exploration programs.

Electric and hybrid military vehicles: Electric vehicle technology is gaining increasing importance in the defense sector as well.

Artificial intelligence and autonomous systems: Decision support systems, autonomous mission planning, and smart munitions.

Sectoral Challenges

Technology Transfer Restrictions

Restrictions on access to certain critical technologies can extend indigenous development timelines. Dependence on external sources persists particularly in engine technologies and certain electronic components.

International Sanctions Risks

Defense product exports can be affected by international political dynamics. Export license requirements and diplomatic relationships may limit market access.

Skilled Workforce Needs

The sector's rapid growth is increasing the need for qualified engineers and technicians. University-industry collaboration programs and internship opportunities are at the forefront of efforts to meet this demand.

Financing

Large-scale defense projects require long-term, high-value financing. Project finance, export credits, and offset arrangements are the mechanisms that address financing needs.

Conclusion: Turkey's Rise in the Defense Industry

The Turkish defense industry and aerospace sector has earned a respected position on the global stage through the transformation it has undergone over the past two decades. From Bayraktar UAVs to the KAAN fighter aircraft, from ASELSAN radars to Roketsan missiles, the broad product portfolio demonstrates Turkey's competence in defense technologies.

The sector's sustainable growth depends on maintaining R&D investments, increasing domestic content rates in critical technologies, diversifying export markets, and developing a skilled workforce. Turkey's defense industry vision, combined with its 2030 targets, is advancing with determination toward becoming one of the most important players in the global defense industry.