Dublin, Jan. 31, 2020 (GLOBE NEWSWIRE) -- The "Turkish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.
This report provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
The report offers detailed analysis of the Turkish defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular, the report provides an in-depth analysis of the following:
- The Turkish defense industry market size and drivers: detailed analysis of the Turkish defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
- Market opportunities: list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Turkish defense industry
Turkish military expenditure is anticipated to register a CAGR of 18.13% over the forecast period. Turkish military stands at US$14 billion in 2019, and registered a compounded annual growth rate (CAGR) of 4.04% during the historic period.
The country's strained relationship with Greece, persistent threats from the Kurdish Workers' Party (PKK), active participation in peacekeeping missions, and the focus on the indigenization and Turkification of defense industry drove defense expenditure during the historic period.
With this trend expected to continue, expenditure is anticipated to register a CAGR of 18.13% over the forecast period to value US$29.8 billion in 2024. As a percentage of GDP, the country's defense expenditure will average 2.2% over the forecast period compared to an average of 1.7% recorded during the historic period.
The capital expenditure allocation, which stood at an average of 33.9% during the historic period, is projected to increase to an average of 40.4% over the forecast period. This is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country's indigenous defense industry. Various procurements that are expected to fuel the growth of capital spending over the forecast period include multi-role aircraft, missile defense systems, corvettes, and main battle tanks (MBTs).
Turkish homeland security (HLS) expenditure stands at US$5.3 billion in 2020 and is projected to reach US$7.8 billion in 2024, registering a CAGR of 10.32% over the forecast period. Expenditure is driven by the threat of separatists and extremists, illegal immigration, drug trafficking and the country's dispute with Syria.
Aircraft accounted for the largest expenditure during 2014-2018, with the US being the largest supplier. Turkish defense imports were highest in 2014 and 2018. Turkey procured Airborne Early Warning and Control (AEW&C) aircraft and in 2014 acquired 737-700 Peace Eagle Aircraft.
Other significant import partners include South Korea, Spain, and Italy. Sensors, artillery, missiles, engines, naval vessels, naval weapons, armored vehicles and satellites were other key imports during 2014-2018. Similarly, arms exports recorded a gradual increase during the historic period and armored vehicles accounted for the majority of defense exports, with UAE topping the list of defense exporters during 2014-2018.
Key Highlights
- Turkish defense expenditure stands at US$14 billion in 2019, and registered a compound annual growth rate CAGR of 4.04% during the historic period.
- The country's strained relationship with Greece, persistent threats from the Kurdish Workers Party (PKK), active participation in peacekeeping missions, and the reduction in foreign dependency for military equipment procurement, drove defense expenditure during the historic period.
- With this trend expected to continue, expenditure is anticipated to register a CAGR of 18.13% over the forecast period to value US$29.8 billion in 2024. As a percentage of GDP, the country's defense expenditure will average 2.22% over the forecast period, which is marginally declining compared to an average of 1.70% recorded during the historic period.
Key Topics Covered
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Author
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Conditions
3.1.1. Primary threat perception
3.1.2. Military doctrine and strategy
3.1.3. Procurement Programs
3.1.3.1. Ongoing procurement programs
3.1.3.2. Future procurement programs
3.1.3.3. Top Procurement Programs by Value (US$ Million) 2019-2024
3.1.4. Geopolitical, Social and economic scenario
3.1.5. Political and strategic alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Turkey defense expenditure expected to grow during the forecast period
3.2.2. Turkish defense expenditure to rise over the forecast period
3.2.3. Military expenditure as a percentage of GDP is expected to decline over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure to increase over the forecast period
3.3.2. Capital expenditure to increase over the forecast period
3.3.3. Key Trends in Turkish defense market
3.3.4. Per capita defense expenditure to rise over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security (HLS) expenditure expected to grow over the forecast period
3.4.2. Threats driving homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. Turkish defense expenditure expected to remain low compared to leading spenders
3.5.2. The country's defense budget is high compared to its regional countries
3.5.3. Turkey defense expenditure as a percentage of GDP is expected to decrease
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top Defense Market Categories by Value (US$ million) - Forecast-Period Projections
3.6.2. Physical Security
3.6.3. Multirole Aircraft
3.6.4. Main Battle Tank
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports expected to decrease over the forecast period
4.1.2. The US was the primary supplier of arms to Turkey
4.1.3. Aircraft were the major imported military hardware during 2014-2018
4.2. Export Market Dynamics
4.2.1. Turkey aims to increase defense exports over the forecast period
4.2.2. UAE emerged as the largest importer of Turkish defense equipment during the period 2014-2018
4.2.3. Armored Vehicles accounted for the majority of defense exports during 2014-2018
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: high
5.1.5. Threat of substitution: high
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. The Turkish government encourages offsets to develop the country's domestic industrial defense base
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement policy and process
6.2.3. Joint venture provides market entry opportunity for foreign OEMs
6.2.4. Joint research and development programs provide foreign OEMs with an opportunity for market entry
6.3. Key Challenges
6.3.1. Corruption poses a challenge to the success of defense deals
6.3.2. The completion of military modernization plans, project delays, and cost escalation to limit new projects
6.3.3. Devaluation of Turkish Lira in relation to US Dollar
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per capita
8.1.2. GDP, current prices
8.1.3. Export of goods and services (LCU Billion)
8.1.4. Import of goods and services (LCU Billion)
8.1.5. Gross national disposable income (US$ Billion)
8.1.6. Local currency unit per US$
8.1.7. Market capitalization of listed companies
8.1.8. Market capitalization of listed companies as a percentage of GDP
8.1.9. Government cash surplus deficit as a percentage of GDP
8.1.10. Goods Exports as a percentage of GDP
8.1.11. Good imports as a percentage of GDP
8.1.12. Service imports as a percentage of GDP
8.1.13. Service exports as a percentage of GDP
8.1.14. Foreign direct investments
8.1.15. Net foreign direct investment as a percentage of GDP
8.1.16. Mining, manufacturing, and utilities output
Companies Mentioned
- Lockheed Martin
- Lockheed Sikorsky
- Korean Aerospace Industries
- Boeing (McDonnell Douglas)
- Samsung Techwin
- Hyundai Rotem
- Howaldtswerke-Deutsche Werft (HDW) - Thyssenkrupp Marine Systems
- BAE
- General Atomics Aeronautical Systems
- Otokar
- Roketsan
- Makina ve Kimya Endstrisi Kurumu (MKEK)
- Aselsan
- Turkish Aerospace Industries (TAI)
- Havelsan
- Tusas Engine Industries (TEI)
- FNSS Defense
- Systems Company
- Istanbul Shipyard
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