Brief information about Turkish defence & aerospace market by 2018, including growth, foreign trade, main companies and market outlook

1. Foreign Market Consulting Ltd. Sti
Istanbul
August 2018
Defence& Aerospace Industry in Turkey

2. FMConsulting prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different segments,
please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmcgroup.com ). We would be happy to support you.

3. Contents
© 2018 Foreign Market Consulting Ltd. Sti.
A Overview Page 04
B Procurement Page 05
C Industry Size Page 06
D Foreign Trade Page 9
E Main Companies Page 11

4. 4
A. Overview
Industry Profile
2017
Sales USD 6,693 mn
Exports USD 1,824 mn
Imports USD 1,544 mn
R&D Expenditures USD 1,237 mn
Number of Employees 44,740
Source: Defence& Aerospace Industries Manufacturers Association (SASAD), 2018

5. 5
Historical Development of the Procurement Approaches
> 1990 1990 - 2000 2000 – 2010 2010 - 2020 2020-2030
Direct
Procurement
Co - Production
Partial Design
(Main Platforms)
Original Design
(Domestic
Production)
Basic & Advanced
Technologies
Cobra AH-1 W
(Attack helicopter)
AB-412 Helicopter
MLRS (Rocket
System)
Armoured combat
vehicle
Light transport
aircraft
Basic trainer aircraft
Cougar helicopter
ALTAY (Tank)
MILGEM (Warship)
ANKA (Unmanned
air vehicle)
HURKUS (Trainer
aircraft)
Original helicopter
programme
National combat
airplane project
Gokturk-3 sattelite
Complete
localization
Life cycle
management
Performance-based
logistics
Source: Undersecretariat for Defence Industries (SSB), 2018
B. Procurement
History of Turkey’s Defence Procurement

6. 6
• CAGR of the Turkish defence and aerospace industry turnover btw. 2013 – 2017:
7.2%
• Land vehicles is the largest segment in the turnover with 41% share.
C. Industry Size
Turnover of the Defence& Aerospace Industry
Source: SASAD, 2018
5076 5101
4908
5968
6693
0
1000
2000
3000
4000
5000
6000
7000
8000
2013 2014 2015 2016 2017
Turnover of the Defence& Aerospace
Industry
USD
mn
Land
vehicles;
2362; 41%
Military
aviation;
1132; 19%
Weapons,
ammunition
, rockets;
828; 14%
Civil
aviation;
660; 11%
Maritime;
569; 10%
Other; 304;
5%
Defence& Aerospace Sales Per
Category, 2017 (USD mn, % Share)

7. 7
• Turkey ranks 15th in the world in terms of military expenditures in 2017.
• Military expenditures have 2.2% share in GDP in 2017.
• CAGR btw. 2013 and 2017 was 7.1% (Constant prices).
C. Industry Size
Military Expenditures
Source: Stockholm International Peace Research Institute (SIPRI), 2018
18,662.6
17,772.2
15,880.9
17,854.0
18,189.8
14000
14500
15000
15500
16000
16500
17000
17500
18000
18500
19000
2013 2014 2015 2016 2017
Military Expenditures (USD mn, current prices)

8. 8
• CAGR of the product& technology development expenditures in the Turkish defence
and aerospace industry turnover btw. 2013 – 2017: 7.5%
C. Industry Size
Product and Technology Development
Source: SASAD, 2018
237
350
287
513
295
690
537 616
741
942
927
887 903
1254 1237
0
200
400
600
800
1000
1200
1400
2013 2014 2015 2016 2017
Product& Technology Development Expenditures in the Defence& Aerospace Industry
Financed by Equity Capital Financed by Project Incentives Total
USD mn

9. 9
• Btw. 2013 – 2017, CAGR was 3.8% in exports, and 3.9% in imports.
• Main destinations of exports were the USA (35%) and Europe (25%) in 2017.
• Main sources of imports were Europe (50%) and the USA (35%) in 2017.
D. Foreign Trade
Defence& Aerospace Exports and Imports
Source: SASAD, 2018
1570
1855
1929 1953
1824
1327 1351
1067
1289
1544
0
500
1000
1500
2000
2500
2013 2014 2015 2016 2017
Foreign Trade of the Turkish Defence& Aerospace Industry
Exports Imports
USD mn

10. 10
D. Foreign Trade
Defence& Aerospace Exports and Imports
Source: SASAD, 2018
Civil
aviation;
542; 30%
Land
vehicles;
522; 29%
Military
aviation;
393; 21%
Weapons,
ammunition,
rockets;
122; 7%
Maritime;
79; 4%
Other; 162;
9%
Defence& Aerospace Exports Per
Category, 2017 (USD mn, % Share)
Land
vehicles;
588; 38%
Civil
aviation;
356; 23%
Military
aviation;
294; 19%
Maritime;
128; 8%
Other; 178;
12%
Defence& Aerospace Imports Per
Category, 2017 (USD mn, % Share)

11. 11
E. Main Companies
Company Business Field Net Sales (2017),
TRY mn*
Aselsan Elektronik Electronics 4,485.5
TUSAS-Turkish Aerospace Industries (TAI) Aerospace 3,661.3
Otokar Otomotiv ve Savunma Sanayi Land vehicles 1,668.6
ROKETSAN Roket
Rocket and missile
systems
1,662.5
BMC Otomotiv Land vehicles 1,649.4
M.K.E.K.- Mechanical and Chemical Industry Company
Ammunition, rockets,
weapons, explosives
1,272.9
TUSAS Engine Industries (TEI) Aerospace 1,179.7
HAVELSAN Hava Elektronik Software 579.7
Nurol Makina Land vehicles 527.5
Alp Aviation Aerospace 328.9
*EUR 1 = TRY 4.12 in 2017
Source: Istanbul Chamber of Industry, 2018
Largest Manufacturers

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information to be handled confidentially, especially regarding the sources used.
Liability
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customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
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