Türkiye’s industrial renaissance: The path to a global powerhouse
"A wide range of industrial products, from automobiles to various other sectors, are manufactured under the "Made in Türkiye" label." (Illustration by Erhan Yalvaç)

Türkiye's booming defense and industry sectors power its rise as a global tech and manufacturing leader



With exports exceeding $8 billion (TL 318.22 billion), the Turkish defense industry has risen to 10th place among global giants. As a model emulated by other countries and renowned for its products on a global scale, the sector has transformed into a major player with a project volume surpassing $100 billion. This transformation has been made possible by a long-standing incentive system. To date, the Turkish defense industry has achieved $55 billion in exports and has played a key role in elevating the Turkish Armed Forces (TSK) to the status of the ninth most powerful military in the world. In conflict zones such as Ukraine, Iraq, Syria, Libya, Ethiopia and Nagorno-Karabakh, the Turkish defense industry has combined the TSK’s striking power with modern technological capabilities, laying the foundation for next-generation technological infrastructure

Behind this success lies the advanced development level of Turkish industry. As of 2025, with a production value of $400 billion, Türkiye is recognized as the world’s 12th largest industrial economy, providing employment for 6.7 million people. The export capacity of Turkish industry has surpassed the $250 billion mark. A wide range of industrial products, from automobiles to various other sectors, are manufactured under the "Made in Türkiye" label. Today, the existing industrial infrastructure, supported by over $19 billion in R&D expenditures, is enabling the construction of next-generation production lines and the emergence of multibillion-dollar corporations. Following Chinese firms, Turkish companies rank second globally in terms of contracting services and are capable of carrying out modern construction projects from Latin America to Africa.

Industrial journey

When the Republic of Türkiye was established in 1923, the Turkish industry consisted of 283 production facilities, characterized by a small to medium-scale structure focused on the domestic market. By 1950, the number of factories had increased to 426, reaching 12,800 by 2002. In 2025, the number of production facilities is expected to exceed 80,000, with exports projected to reach $250 billion. As a return on R&D investments, high-tech exports currently stand at $8.8 billion, still below their potential. However, by 2030, high-tech exports are expected to exceed $30 billion, potentially accompanied by R&D employment surpassing half a million people. Türkiye currently accounts for 1.33% of global manufacturing output and aims to raise this share to 1.65% by 2030, as part of its efforts to prepare for the 4th Industrial Revolution.

Notably, the year 2023 marked the centenary of the republic and the first time that Türkiye’s national income surpassed $1 trillion. By 2030, the national income is expected to approach $2 trillion, signaling a massive industrial production value of $600 billion. Reaching such a figure could position Turkish industry among the world’s top ten industrial powers.

Defined as the "National Technology Initiative," the effort to transform the "Made in Türkiye" label into a globally scaled production powerhouse is integrated with major firms such as Turkish Airlines (THY), the Türkiye's Automobile Joint Venture Group (Togg), Baykar Technologies, Turkish Aerospace Industries (TAI), Aselsan, Havelsan, Arçelik and others. Between 2002 and 2024, Türkiye invested nearly $170 billion in R&D, and it plans to allocate another $200 billion over the next six years, including investments in the aforementioned companies. Designed around technology-driven entrepreneurship, national technology workshops and technoparks are key components of this high-tech investment strategy. Regional development, conceived as part of the new industrialization process, is also included in the 2030 Industry and Technology Strategy Document. This strategic road map aims to transform the Turkish industry in five-year phases, incorporating the defense industry as a critical component.

The 2030 goals, which could play a significant role in resolving chronic issues such as trade imbalances and current account deficits, foresee R&D spending exceeding $43 billion. Such a level of investment could position Turkish industry to compete with Western European economies. Notably, Türkiye has already surpassed Italy in R&D spending as a percentage of GDP and is poised to overtake Spain and Poland. The country is determined not to lag behind in the 4th Industrial Revolution.

Türkiye Automotive Initiative

Togg represents a significant reflection of the country’s industrial vision. According to the latest figures, the company has reached a sales capacity of $1.2 billion and has become the 37th largest industrial enterprise in the country. As a nation aiming to lead in electric vehicle technologies, Türkiye currently ranks as the 13th largest vehicle manufacturer in the world. Togg plays a crucial role in maintaining this position and enhancing competitiveness.

Electric vehicles could become a cornerstone of Turkish industry, especially in efforts to reduce reliance on imported inputs and eliminate dependence on foreign energy sources. For this reason, large-scale investments in renewable energy are also of great importance. As a country that imports an average of $60 billion-$80 billion worth of energy annually, Türkiye is moving forward in line with the aforementioned vision. Just as in the defense industry, the Made in Türkiye brand should be transformed into a global force in other high-tech sectors as well.

Made in Türkiye

With 3,500 companies, the Turkish defense industry has become a giant, receiving $20 billion in annual orders and achieving nearly $10 billion in exports. This demonstrates that Turkish industry has embraced a new-generation approach. The level of defense cooperation reached with countries such as Italy, Spain, Romania and Poland reflects the growing strength of Turkish industry. In an era when industrial competition is shaping the global landscape, Türkiye prioritizes technological competitiveness despite limited resources and financial means. Government support and strategic guidance for Turkish firms are regularly monitored, and state-backed companies participate in global construction initiatives. To date, Turkish firms have been involved in infrastructure projects worth nearly $600 billion.

As a result, Turkish industry has been built as a connected ecosystem. Between China and Germany, one of the largest industrial networks in the region has been developed through this approach. The global brand image of Made in Türkiye has gained a more institutional character thanks to this robust infrastructure. As the global economy stands on the brink of the Fourth Industrial Revolution, the "Made in Türkiye" label is poised to gain even greater prominence.