The Turkish Defense Sector - Market Opportunities and Entry Strategies, Analyses and Forecasts to 201513 Dec 2010 • by Natalie Aster
London – “During the review period, as a percentage of GDP, average Turkish defense expenditure stood at 2.3%, however during the forecast period this figure is expected to decrease to 1.9%. The reduction in the country’s military expenditure as a percentage of GDP is resultant of country’s economic growth, predicted at a CAGR of 8.72%, during the forecast period.”
The report “The Turkish Defense Sector - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015” by iCD Research offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Turkish defense industry.
Turkish defense expenditure registered a CAGR of 3.89% during the review period, which is estimated to equate to US$13.7 billion in 2010. During the forecast period, defense expenditure is expected to record a CAGR of 4.90%, and reach US$17.5 billion by 2015, largely due to the internal and external security threats faced by the country. Over the forecast period, Turkey is expected to continue to allocate the majority of its defense budget towards capital expenditure, including the acquisition of military hardware from foreign and domestic equipment manufacturers.
Published: July 2010
Price: USD 1,250.00
Report Sample Abstract:
Turkish defense imports continue to increase at a steady rate
In 2009, Turkish arms imports registered an increase of 17% over the previous year, and during the review period arms imports grew at a CAGR of 29.30%. In 2005, the country’s arms imports peaked, following a period of stagnation during 2002–05. However, since 2005, the nation has maintained a moderate level of imports as during this period the majority of major acquisitions made as part of the Turkish defense modernization program, were completed. Throughout the forecast period, the country’s defense imports are expected to remain at a moderate level, due to the increasing capability of the domestic arms industry to cater to the demands of Turkish military.
Turkish defense exports increased at a CAGR of 26.40% during the review period
Despite the global economic downturn, in 2009 Turkish defense exports registered an increase of 10%, compared to previous year. Throughout the duration of the review period, the country’s defense exports grew at a CAGR of 26.40%, to reach US$633.6 million in 2009, and by 2011, the government aims to increase its arms exports to US$1 billion. In order to increase its industrial defense capabilities the country is investing significantly in the research and development of defense technology. The country’s defense industrial base is represented by Turkey’s Defense Industry Manufacturer’s Association (SASAD).
The main destinations for Turkish defense exports are developing nations such as Asia and the Middle East
During the review period, the three largest consumers of Turkish defense equipment were Iraq, Pakistan and Albania with a share of 24%, 19% and 14% respectively. In 2009, although overall arms exports registered an increase over the previous year, the country supplied to only five nations, Georgia 38%, Pakistan 33%, Malaysia 24%, Philippines 3% and Slovenia 2%. In order to increase its overall arms exports to US$1 billion in 2011, Turkey is collaborating on the joint development of defense equipment with foreign defense OEMs based in countries such as Germany, Spain and France, a strategy which will enable Turkey to enter the international defense market. The A400M project, which includes the design, development and production of a military cargo aircraft, is an example of such an alliance, as the project will supply airlift aircraft to European countries such as Belgium, France, Germany, Luxembourg, Spain and Turkey.
More information can be found in the report “The Turkish Defense Sector - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015” by iCD Research.
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