Turkish arms industry sees major growth in 2023, driven by exports, domestic demand
Weapon systems are seen during the inauguration ceremony of new facility of Turkish defense giant Aselsan (Military Electronic Industries) in Golbasi district of Turkish capital Ankara, Türkiye on November 12, 2020. (AA Photo)
The Turkish arms industry achieved significant growth in 2023, driven by increased exports and rising domestic demand.
According to the latest report from the Stockholm International Peace Research Institute (SIPRI), Türkiye’s top three arms manufacturers—Aselsan, Baykar and Turkish Aerospace Industries (TAI)—ranked among the world’s Top 100 arms producers.
These companies recorded combined arms revenues of $6 billion, marking a 24% year-over-year increase.
Baykar leads Turkish arms export success
Baykar, an armed unmanned aerial vehicles (UAVs) manufacturer, saw its arms revenues surge by 25% to $1.9 billion in 2023.
Exports accounted for 90% of the company’s income, reflecting its global reach. Baykar’s UAVs, widely used in the ongoing war in Ukraine, have been exported both directly to Ukraine and indirectly through other countries.
The company climbed 10 spots in SIPRI’s rankings, securing 69th place.
Key figures from SIPRI’ report
- Combined revenues of Turkish companies: $6 billion, an increase of 24% year-over-year (y-o-y)
- Baykar: $1.9 billion, an increase of 25% y-o-y, 90% from exports
- TAI: $1.7 billion, an increase of 45% y-o-y, 31% from exports
- Aselsan: $2.4 billion, an increase of 12% y-o-y, primarily domestic sales
“The biggest Middle Eastern arms producers in the Top 100 saw their arms revenues reach unprecedented heights in 2023 and the growth looks set to continue,” said Dr Diego Lopes da Silva, Senior Researcher with the SIPRI Military Expenditure and Arms Production Programme.
“In particular, as well as taking in record arms revenues in 2023, Israeli arms producers are booking many more orders as the war in Gaza rages on and spreads,” he added.
Turkish Aerospace Industries reports record growth
Turkish Aerospace Industries (TAI) recorded the largest year-over-year revenue growth among Türkiye’s top defense firms, with a 45% increase.
Its 2023 arms revenues reached $1.7 billion, 31% of which came from exports. This growth propelled TAI to 78th place in SIPRI’s rankings, up 10 spots from the previous year.
Aselsan dominates domestic market
Unlike Baykar and TAI, Aselsan derives the majority of its revenues from domestic sales. With arms revenues totaling $2.4 billion in 2023—an increase of 12%—Aselsan ranked 54th on SIPRI’s list.
The company’s growth was largely fueled by Türkiye’s push for self-reliance in defense manufacturing, as Aselsan continues to supply advanced systems to Turkish security forces.
Other notable developments
- The nine companies in the Top 100 based in China saw their smallest year-over-year percentage increase in arms revenues (+0.7%) since 2019 amid a slowing economy. Their total arms revenues in 2023 reached $103 billion.
- The combined arms revenues of the three Indian companies in the Top 100 increased to $6.7 billion (+5.8%).
- NCSIST, the only Taiwan-based company in the Top 100, recorded a 27% increase in its arms revenues to $3.2 billion.
- Türkiye’s Baykar produces armed UAVs that have been widely used in the war in Ukraine. Exports accounted for around 90% of its arms revenues in 2023, which increased by 25% over the year to $1.9 billion.
- The United Kingdom’s Atomic Weapons Establishment, which designs, manufactures and maintains nuclear warheads, recorded the largest year-over-year percentage increase in arms revenues (+16%) among U.K. companies in the Top 100, to reach $2.2 billion.
