Türkiye’s defense industry emerges as Europe’s strategic partner

BBVA Research stated in a September report that global defense demand has entered a new phase as geopolitical tensions drive governments to expand military capabilities, positioning Türkiye's industry as a vital complementary partner for European manufacturing. The Spanish bank's research arm said defense demand continues to “enter a more structural phase” as governments are prompted to “rebuild capabilities and invest in new technologies,” noting that military spending has shifted toward long-term capability rebuilding rather than cyclical procurement.

European production gaps

The report highlighted that the European defense industry faces significant bottlenecks in production scale, speed and stockpile replenishment despite robust infrastructure, with the most acute capacity gaps appearing in integrated air and missile defense, unmanned aerial vehicles and counter-drone systems. Authors designated UAVs and ammunition manufacturing as the two areas of highest potential alignment between Ankara and Brussels, noting that local content requirements and design rights under the SAFE framework currently restrict non-EU suppliers from automatic market access.

Global market reach

The defense and defense-related sectors currently employ 176,700 workers across Türkiye, with the industry's global footprint extending beyond Europe to encompass export markets in Africa, Asia and the Gulf. BBVA Research identified cost-effective and rapidly deployable systems as priorities in Africa, joint production and technology transfer opportunities in Asia, and joint venture potential in Gulf states, adding that Türkiye-EU defense cooperation could become one of the most significant industrial opportunities of the coming decade. Defense exports are projected to reach $10 billion by 2025, while domestic production rates in missiles and rockets have already exceeded 90%.