Rapid defence industry development over years Turkey's Defence Industry Targets $20 Billion in New Contracts

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Turkey's defence and aerospace industry continues to expand rapidly, with new contracts worth $15 billion signed so far in 2026. 

Turkey's defence and aerospace industry continues to expand rapidly, with new contracts worth $15 billion signed so far in 2026 with the Turkish state also being a central central customer. Turkey most recently announced to increase its budget for the procurement of weapons, ammunition and military equipment by 229 per cent in 2027.  Total spending on defence and security is expected to reach $69.64 billion, accounting for 12.7 per cent of the central government budget.  

Growing Exports and Industrial Capacity 

Turkey's defence and aerospace exports reached $6.93 billion in the first nine months of 2026, an increase of 15.6 per cent compared with the same period last year. Over the preceding twelve months, exports totalled $10.94 billion, representing year-on-year growth of 29.9 per cent. The figures also highlight the increasing importance of defence manufacturing within Turkey's wider industrial economy. According to Görgün, the export value per kilogram of defence and aerospace products is approximately 40 times higher than the national average. A substantial domestic supply chain supports this development. Major Turkish defence contractors, including ASELSAN, ROKETSAN, Turkish Aerospace Industries (TUSAŞ), HAVELSAN and STM, have worked with more than 16,000 domestic companies over the past three years. During that period, the main contractors placed orders worth more than $20 billion with their suppliers. Outstanding domestic orders currently exceed $13.4 billion, providing a huge workload for the country's defence manufacturing base. 

ASELSAN secures €523 Million Air defence contract

The latest example of Turkey's investment in domestic defence technology is a contract announced by ASELSAN on 26 October. The company has signed an agreement worth €523 million with the SSB for the development of a next-generation air and missile defence system. The contract was disclosed through Turkey's Public Disclosure Platform (KAP). Further technical details, including the system's configuration, performance characteristics and development schedule, have not yet been announced. ASELSAN already plays a central role in Turkey's efforts to establish an integrated, multi-layered air defence architecture. The country's Steel Dome programme is intended to connect radar systems, electro-optical sensors, command-and-control capabilities and different classes of air defence weapons.

From arms importer to defence exporter

Turkey's growing defence industry reflects a long-term strategy to reduce dependence on imported military equipment while developing internationally competitive products. An extensive analysis published by NoonPost examines this transformation and the role of government support, domestic technological development and export-oriented industrial policy in Turkey's emergence as a major defence supplier. Despite considerable progress, the industry continues to depend on foreign technologies in certain areas, particularly propulsion systems and other critical components. For European defence manufacturers, Turkey's industrial expansion represents both growing competition and potential opportunities for cooperation.