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Future of the Turkey Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Turkey Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

Turkish defense expenditure stands at US$10.6 Billion in 2017, and registered a compound annual growth rate (CAGR) of -7.49% 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 5.88% over the forecast period to value US$13.5 Billion in 2022.

Turkey’s defense expenditure will largely be driven by a dispute over territorial rights with Greece, security threats possessed by the Kurdish Workers’ Party (PKK), participation in peacekeeping missions, and the country’s focus on enhancing its defense export market while minimizing its foreign dependency for arms procurement. The country has no plans to decrease its defense budget and will increase its expenditure on procurement for the foreseeable future.

Turkish homeland security (HLS) expenditure, stands at US$1.5 Billion in 2017, and is projected to reach US$2.4 Billion in 2022, registering a CAGR of 9.02% 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. IS terrorist attacks also poses a major problem for the country’s security forces. The government is looking to boost investments in internal security services and intelligence to prevent attacks

Aircraft accounted for the largest expenditure during 2012-2016, with the US being the largest supplier. Turkish defense imports were highest in 2012 and 2014. In 2012,

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 2012-2016.

The report “Future of the Turkey Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Turkey defense industry.

In particular, this report offers in-depth analysis of the following:

  • Market opportunity and attractiveness: Detailed analysis of the current industry size and growth expectations during 2018-2022, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
  • Procurement Dynamics: Trend analysis of imports and exports, together with their implications and impact on the Turkey defense industry.
  • Industry structure: Five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
  • Market entry strategy: Analysis of possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the defense industry in Turkey, providing an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Howaldtswerke-Deutsche Werft, Lockheed Martin, BAE Systems, Otokar, Roketsan, Makina ve Kimya Endüstrisi Kurumu, Aselsan, Turkish Aerospace Industries, Havelsan, Tusas Engine Industries (TEI), FNSS Defense Systems Company and Istanbul Shipyard.

Scope

  • Turkish defense expenditure stands at US$10.6 billion in 2017, and registered a compound annual growth rate (CAGR) of -7.49% 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.. As a percentage of GDP, the country’s defense expenditure will average 1.3% over the forecast period compared to an average of 1.4% recorded during the historic period.
  • The capital expenditure allocation, which stood at an average of 26.1% during the historic period, is projected to slightly decrease to an average of 24.1% 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). Consequently, the remaining budget will be allocated to revenue expenditure, which constitutes personnel salaries, development programs for military personnel, and training.
  • The MoD is expected to invest in fighters and Multi-role aircraft, Main Battle Tanks (MBT) and frigates.

Reasons to Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of Turkey 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
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of Turkey defense industry covering sections including demand drivers, Porter’s Five Forces Analysis,  Key Trends and Growth Stimulators, and latest industry contracts

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