After a Momentous 2025, Turkish Defence Industry Set for Greater Heights in 2026

Our Bureau - : May 5, 2026 - : 12:05 am

The exponential growth of the Turkish defence industry in recent years is one of the most remarkable storylines in the global arms market. 2025 was a record-breaking year and judging by the number and magnitude of contracts that the industry ended the year with, 2026 is shaping up to be an even better year.

Türkiye ended 2025 with a new contract record of US$17.8 billion, a big spike from and US$10 billion the previous year. Last year, revenue from the country’s defence and aerospace industry exports touched double figures for the first time, reaching US$10.56 billion in products and services exported, an increase of 49 percent from US$7.1 billion in 2024. The growing global demand for Turkish defence products is reflected in the fact that weapons and ammunition accounted for US$4.7 billion of total exports.

Stockholm International Peace Research Institute (SIPRI) data from the 2021–2025 period has the country 11th on the list of the world’s largest arms exporters. Exports surged by 122% in 2021-2025 compared to the previous five-year period. Defence exports, which stood at US$248 million in 2002, jumped nearly forty-fold to reach US$9.87 billion in 2025. Last year alone, Türkiye’s ASFAT signed a contract with Romania for a Hisar-class corvette while Spain selected the Turkish Aerospace Industries (TAI) Hürjet as its new advanced jet trainer to replace its aging F-5M fleet. Indonesia signed a contract in July 2025 to purchase 48 KAAN fifth-generation fighter jets from TAI. In December 2024, STM was selected to build two logistics and support ships for Portugal.

Comprehensive Portfolio

With the country’s defence industry, reputed for its combat-proven military UAVs such as the Bayraktar TB2 and ANKA, evolving into one capable of producing other high-tech systems such as the KAAN fighter jet, air defence systems, electronic warfare (EW) technologies, armoured vehicles, naval platforms, and attack helicopters, global demand for Turkish defence products are at an all-time high. With ongoing conflicts and geopolitical tensions spurring a marked increase in global military expenditure, revenue from export of weapons in 2026 is likely to surpass 2025 figures.

Ongoing conflicts in different parts of the world has accentuated the need for effective air defence systems. ASELSAN secured a three-year NATO contract to supply advanced IFF systems for air defence platforms. As many as 47 major components of the Steel Dome project, which is one of the country’s most significant and largest defence initiatives, have already been delivered. ASELSAN and ROKETSAN jointly received US$6.5 billion in contracts to facilitate what will be a multi-layered and comprehensive air defence system. Full operational capability is expected by 2028.

International interest in Steel Dome is high, as Gulf states, Eastern European countries, and other NATO allies are looking for effective air defence solutions. The global trend away from manned weapons toward unmanned assets also plays right into Türkiye’s strengths; Baykar, known for the TB2, TB3 and Akinci military UAVs, is unveiling the K2 kamikaze drone and two loitering munitions – Sivrisinek and Mizrak – at SAHA 2026.

Demand for Turkish defence products and services are not limited to the Middle East or Asia Pacific. About 56 percent of Türkiye’s defence and aerospace exports in 2025 were delivered to the European Union, NATO countries and the U.S. The increasing international demand is reflected in the fact that there are as many as five Turkish companies – ASELSAN at 47, TUSAŞ at 65, Baykar at 73, Roketsan at 87 and MKE at 93 - in the list of the world’s top 100 defence firms.