Between 2000 and 2025, the Turkish economy underwent a major transformation. While the national income rose from $275 billion (TL 11.81 trillion) to $1.6 trillion, the defense industry became the fastest-growing sector. In 2000, the sector had a turnover of less than $1 billion and exports of around $200 million. By 2025, it had broken new records. This year, the defense industry’s turnover surpassed $20 billion, while exports approached the $8.5 billion mark. With a total project volume exceeding $100 billion and the number of employees reaching 100,000, the Turkish defense industry has become one of the key drivers of the country’s economic transformation.
The progress achieved over the past quarter-century is expected to pave the way for Türkiye to build one of the world’s largest defense industries in the next 25 years. Türkiye today ranks among the world’s 100 largest defense companies with five firms and accounts for 1.5% of total global defense exports. According to Stockholm International Peace Research Institute (SIPRI) data, Türkiye is the 12th largest defense industry actor in the world and is preparing to enter the top 10. Turkish defense products have been adopted by militaries across nearly every continent, reaching countries from Romania, Indonesia, the Philippines and Peru to Brazil and Poland.
During the 2020-2025 period, Türkiye exported a total of $30.7 billion worth of defense products. In 2025, exports approached the all-time high of $8.5 billion. To understand the magnitude of this figure, an international comparison is instructive. While Türkiye’s defense exports reached $8.5 billion in 2025, several countries have smaller total military budgets. For example, Iraq ($7.92 billion), Pakistan ($7.64 billion), Denmark ($7.22 billion), Greece ($6.5 billion), Finland ($6.77 billion), Egypt ($5.87 billion) and Malaysia ($4.8 billion) all spent less on their militaries than Türkiye exported in defense products. These figures represent the military budgets of these countries for 2025. Notably, Egypt and Pakistan rank among the world’s strongest armed forces and are listed among the top 20 military powers. Comparing individual Turkish defense companies with entire countries highlights the sector’s remarkable development.
According to SIPRI, Aselsan – with annual revenues of 3.47 billion dollars – ranks as the world’s 47th largest defense company. Several countries have smaller military budgets than Aselsan’s annual revenue, including Peru ($3.42 billion), Nigeria ($3.16 billion), New Zealand ($3.03 billion) and Jordan ($2.5 billion). Similar comparisons can also be made for Baykar Technologies, Roketsan, Turkish Aerospace Industries (TAI) and the Machinery and Chemical Industry Corporation (MKE).
To better understand the position the Turkish defense industry reached in 2025, the year’s major deliveries and export destinations can be analyzed. A contract was signed with Indonesia for 48 Kaan fighter jets. The Altay tank entered the inventory of the Turkish Armed Forces (TSK). The Kızılelma unmanned fighter jet locked onto an F-16 aircraft and struck ground targets with full precision. Production began on T.C. Trakya, a larger version of the T.C. Anadolu assault ship. Aselsan continued producing national digital medical systems for the health care sector and carried out various deliveries. For the first time in the history of the republic, a jet engine was exported (to Brazil). The Hürjet training aircraft was exported to the Spanish Royal Air Force. The introduction and testing of the Tolun and Som missiles were highlighted. The Steel Dome Air Defense Systems were incorporated into the TSK, accompanied by a new agreement worth $6.5 billion. Aselsan unveiled the next-generation anti-drone system Ejderha. Within the field of electronic warfare and detection technologies, the Vural electronic warfare system, the Yener modern mine-detection system, the Gökberk laser ignition system, and the Korkut air-defense platform were delivered to the TSK.
The MILGEM national warship program also experienced several firsts this year. Nearly 40 warships are currently under construction in various shipyards across the country for the Turkish naval forces. At a time when the construction of a national nuclear submarine is being discussed, the naval forces are preparing to become one of the major naval powers of its era. Warships are also being built or delivered this year for the navies of Romania, Malaysia and Pakistan.
With Aselsan’s introduction of the Fersah submarine sonar system, new exports targeting ocean-operating navies are anticipated. The inclusion of Rafnar unmanned surface vessels in the navy's inventory may create a similar impact. The Turkish defense industry, which possesses export capability in corvettes, mine vessels and unmanned maritime platforms, can increasingly be regarded as a next-generation defense ecosystem.
With expanding cooperation among NATO members, similar exports are expected to increase further. In addition to exporting hardware, the Turkish defense industry also exports services. For 2025, defense service exports are expected to reach $530 million, and this figure is likely to grow in the coming years. Exported systems require maintenance, modernization, advisory support and various other services. Training activities also contribute to service exports. When evaluated as a whole, total defense-related goods and services exports exceeded $9 billion in 2025. Considering that this figure represents a new record, it can be said that the Turkish defense industry has become one of the success stories of the 21st century.
Another important aspect of the Turkish defense industry is research and development (R&D) spending. Türkiye’s total R&D expenditures for this year amount to approximately $25 billion. The defense industry receives the largest share of this budget, and the companies with the highest R&D spending are typically major firms such as Aselsan, Baykar Technologies, TAI and Roketsan.
Research and development are the primary driver for developing the technologies required by the defense sector and ensuring their integration with other systems. Especially in an environment where the total project volume exceeds $100 billion, new R&D initiatives are essential for enabling the sector to compete globally in advanced technologies. For example, projects such as the KOZ robotic dog, Ulak, Avcı, Mildar and Tuygun represent next-generation R&D activities. These initiatives often generate returns that far exceed the initial investment. In the coming years, the transfer of these technologies to both the private and public sectors may give rise to new brands. Global tech giants like Microsoft, Google and Apple have similarly expanded their global reach through the transfer of defense-related technologies to civilian markets. Looking beyond 2025, companies such as Baykar Technologies, BMC, FNSS, and Otokar appear to be strong candidates for producing next-generation technologies and competing globally in various fields.
In conclusion, with 3,500 companies operating in the sector and providing employment for 100,000 people, the Turkish defense industry achieved new historic milestones in 2025. As seen in the introduction of numerous combat platforms into the inventory of the TSK, the Turkish defense industry is preparing to enter the second quarter of the century with a strong, technology-focused foundation.
