Tuesday, 02 January 2024 12:17 GMT

Türkiye Expands Defense Role as Europe Seeks Greater Military Capacity


(MENAFN) Türkiye’s rapidly expanding defense industry is strengthening its position in the domestic economy while creating new opportunities for the country to become a complementary supplier to European defense markets, according to a recent assessment by BBVA Research.

The report said rising geopolitical tensions and increased military spending worldwide have pushed defense demand into “a more structural phase,” as governments seek to “rebuild capabilities and invest in new technologies.”

Europe’s defense sector, despite having a well-developed industrial base, continues to face significant challenges in expanding production, accelerating deliveries and replenishing military stockpiles. These limitations have become particularly visible in several strategically important areas.

Among the sectors facing the largest capacity gaps are integrated air and missile defense, unmanned aerial vehicles, counter-unmanned aircraft systems, loitering munitions, long-range firepower and ammunition supplies.

The report identified unmanned aerial vehicles and ammunition production as two areas where Türkiye could potentially align most closely with Europe’s defense requirements. However, it cautioned that Türkiye’s ability to complement European production does not automatically provide access to the EU market.

Restrictions linked to local-content requirements and design rights under the SAFE framework can limit the participation of defense suppliers from outside the European Union. Greater integration would therefore require different forms of industrial cooperation between Turkish companies and European partners.

Possible models include joint manufacturing programs, local assembly operations, joint ventures, integration into European supply chains and technology-sharing arrangements.

At the same time, the defense sector has become increasingly significant to Türkiye’s wider economy. Defense exports are projected to reach $10 billion by 2025, while domestic production in missiles and rockets has surpassed 90%.

The industry and related sectors currently employ around 176,700 people, highlighting the sector’s growing contribution to employment, manufacturing capacity and exports.

Türkiye’s defense ambitions also extend well beyond Europe. The country has opportunities to expand its presence in markets across Africa, Asia and the Gulf, with different regions offering different forms of cooperation.

In Africa, demand is expected to center on cost-effective systems that can be deployed rapidly. Asian markets offer opportunities involving joint manufacturing and technology transfers, while Gulf countries present potential for joint ventures and technology partnerships.

The report said Türkiye’s future competitiveness will depend partly on its ability to increase production volumes for platforms that are already in service while continuing to develop capabilities in advanced fields.

Artificial intelligence, autonomous systems, cybersecurity and space technologies are among the areas expected to play an increasingly important role in the next phase of the country’s defense industry development.

Türkiye’s combination of flexible manufacturing capacity and experience with modern warfare could complement Europe’s need for faster production and operationally deployable systems, according to the assessment.

The report concluded that closer defense cooperation between Türkiye and the European Union could become a significant industrial and geopolitical opportunity over the coming decade, provided mechanisms are developed to overcome market-access and industrial integration barriers.

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