Market Trends of Aerospace And Defense Industry Of Turkey
Aerospace Segment to Witness Highest Grwoth During the Forecast Period
Turkey is one of the major hubs for transcontinental travel because the country is located right between the West (Europe) and the East (Asia and the Middle East). The country is located north of the globe, allowing quicker trans-artic travel to North America. This drives the aviation industry in Turkey. For instance, 128 million air passengers traveled through Turkey in 2022, compared to 112 million in 2021. The growth between 2022 and 2021 was 14.5%, and the growth between 2022 and 2020 was 187%. The country’s passenger revenue recorded an 81% growth in 2022 compared to 2021. It was 193% compared to 2020. The country’s air transport freight recorded a 47.69% growth in 2022 compared to 2021. It was 16% compared to 2020.
Regarding deliveries, the country’s commercial aircraft accounted for 12% of the total commercial aircraft in the Middle East and Africa from 2017-2022. Of these commercial aircraft deliveries, about 80% are narrowbody, 20% widebody, and no freighter aircraft were delivered during 2017-2022. For instance, Turkish Airlines SunExpress received four Boeing B737-8 MAX 8s in December 2021. With deliveries continuing through 2029, the airline has 42 aircraft on order. Furthermore, Pegasus Airlines has a 100 aircraft order with 25 options, amounting to a list price of USD 12 billion. Pegasus Airlines added to this in October 2021 with a six-aircraft order for more A321neos; deliveries to the Istanbul-based carrier will start in 2024.
Defense to Dominate Market Share During the Forecast Period
The defense segment is projected to continue its dominance during the forecast period. This is majorly due to the rapidly growing military expenditure of the country. The country is developing new and advanced combat aircraft, weapons, and ammunition (including missiles), naval vessels, UAVs, main battle tanks, and C4ISR equipment, among others, to support the country's armed forces.
In 2022, Turkey’s military spending was USD 15.4 billion. Out of the total government spending, the country has allocated 1.2% of its share to the military. According to the Defence Industry Manufacturers Association, in 2022, Turkey's defense and aerospace industry sales reached USD 12.2 billion, and exports totaled USD 4.4 billion, exceeding USD 2.6 billion in imports. There is an increase in all defense areas, with research and development (R&D) investments increased to USD 2.1 billion from USD 1.6 billion, a 25.72% increase from 2021.
In January 2022, the Turkish Defense Association (SSB) announced that it was conducting the final testing of its indigenous HISAR-O+ air defense missile system. It is a short-, medium-, and long-range surface-to-air missile system being developed by Roketsan and ASELSAN. HISAR-O includes mobile launcher units, a fire control system, mast-mounted air defense radar, and electro-optical/infrared (EO/IR) sensors and consists of a high explosive fragmentation warhead, which can be fitted with impact and proximity fuses to effectively destroy airborne targets flying at medium altitudes.
