The security and defence sector in Türkiye has experienced significant growth and transformation over the past decade. Driven by strategic geopolitical considerations, technological advancements, and an increasing emphasis on self-reliance, the industry has expanded its capabilities and market presence. This report provides a comprehensive analysis of the current state of the sector, highlighting key market numbers, applications, growth drivers, and the latest events shaping its trajectory.
Market Overview
Industry Size and Growth
Türkiye’s security and defence sector has shown robust growth, with the market size reaching USD 10.2 billion in 2023. This represents a compound annual growth rate (CAGR) of 6.7% over the past five years. The sector is expected to continue its upward trajectory, with projections estimating the market to reach USD 13.5 billion by 2028, maintaining a CAGR of 5.8%.
Key Market Segments
The sector can be broadly categorized into three main segments:
- Defence Equipment and Manufacturing
- Cybersecurity Solutions
- Private Security Services
Defence Equipment and Manufacturing
This segment accounts for the largest share of the market, driven by the production of military hardware, vehicles, and weaponry. Türkiye’s defence manufacturers, such as Aselsan, Roketsan, and TAI (Turkish Aerospace Industries), have been instrumental in supplying both domestic and international markets. In 2023, the segment generated revenues of approximately USD 6.4 billion.
Cybersecurity Solutions
Cybersecurity has become a critical area of focus, with Türkiye investing heavily in protecting its digital infrastructure. The cybersecurity market, valued at USD 1.8 billion in 2023, is expected to grow at a CAGR of 7.5%, reaching USD 2.6 billion by 2028. Companies like HAVELSAN and STM are leading providers of cybersecurity solutions.
Private Security Services
The private security sector has also seen substantial growth, driven by increased demand for personal and corporate security services. This segment was valued at USD 2 billion in 2023 and is projected to grow at a CAGR of 5.2%, reaching USD 2.6 billion by 2028.
Applications and Use Cases
Defence Equipment and Manufacturing
Military Modernization
Türkiye’s ongoing military modernization efforts have been a significant driver of growth in the defence manufacturing sector. The country has focused on developing indigenous capabilities, reducing dependency on foreign suppliers. Key projects include the Altay main battle tank, the TCG Anadolu amphibious assault ship, and the development of unmanned aerial vehicles (UAVs) such as the Bayraktar TB2.
Export Opportunities
The expansion of Türkiye’s defence exports has also contributed to market growth. In 2023, defence exports reached USD 4.4 billion, with major markets including Qatar, Azerbaijan, and Malaysia. The government’s support for international marketing initiatives and participation in global defence exhibitions has bolstered this segment.
Cybersecurity Solutions
Government and Critical Infrastructure Protection
Cybersecurity solutions are crucial for safeguarding government networks and critical infrastructure. Türkiye has implemented stringent cybersecurity measures to protect its energy, transportation, and communication sectors from cyber threats. National initiatives like the National Cybersecurity Strategy and Action Plan (2020-2023) have been pivotal in enhancing the country’s cyber resilience.
Corporate and Individual Security
The rising number of cyberattacks on businesses and individuals has led to increased demand for cybersecurity services. Financial institutions, healthcare providers, and e-commerce platforms are among the key adopters of advanced cybersecurity measures to protect sensitive data and ensure operational continuity.
Private Security Services
Personal Security
The demand for personal security services has grown due to an increase in high-net-worth individuals and heightened security concerns. Private security firms offer tailored services, including executive protection, residential security, and secure transportation.
Corporate Security
Corporate security services have become essential for businesses operating in high-risk environments. These services include risk assessment, crisis management, and security consulting, helping companies safeguard their assets and personnel.
Growth Drivers
Geopolitical Factors
Türkiye’s strategic location, straddling Europe and Asia, has necessitated a strong focus on defence and security. The country’s involvement in regional conflicts and its role as a NATO member have driven the need for advanced defence capabilities.
Technological Advancements
Technological innovation has been a cornerstone of the sector’s growth. Investments in research and development (R&D) have led to the production of cutting-edge defence equipment and cybersecurity solutions. The integration of artificial intelligence (AI), machine learning (ML), and advanced analytics has enhanced the effectiveness of security measures.
Government Support
The Turkish government has played a crucial role in fostering the growth of the security and defence sector. Policies aimed at boosting domestic production, coupled with financial incentives and support for R&D activities, have created a conducive environment for industry expansion.
Latest Events
Defence Industry Fair (IDEF) 2023
The IDEF 2023, held in Istanbul, showcased the latest advancements in defence technology. The event attracted over 1,000 exhibitors from 50 countries, highlighting Türkiye’s growing prominence in the global defence market. Key announcements included new partnerships, product launches, and strategic agreements.
National Cybersecurity Strategy
In 2023, the Turkish government launched an updated National Cybersecurity Strategy, outlining measures to enhance the country’s cyber resilience. The strategy focuses on strengthening public-private partnerships, increasing investment in cybersecurity infrastructure, and promoting cybersecurity awareness and education.
Expansion of Defence Exports
Türkiye’s defence exports have continued to grow, with several high-profile deals signed in 2023. Notable agreements include the sale of UAVs to Poland and the export of armoured vehicles to Tunisia. These deals underscore Türkiye’s capability to compete in the global defence market.
Conclusion
Türkiye’s security and defence sector is poised for continued growth, driven by strategic geopolitical considerations, technological advancements, and robust government support. The industry’s focus on developing indigenous capabilities and expanding export markets will be key to its sustained success. As the sector evolves, ongoing investment in R&D and cybersecurity will be critical in addressing emerging threats and maintaining competitive advantage.
