This is a best prospect industry sector for this country. Includes a market overview and trade data.

Turkey’s sizeable population of 80 million (average age: 30), dynamic entrepreneurial class and advantageous geographic position as a bridge between Europe, Asia and Africa has made the country an important manufacturing and distribution hub.  Turkey positions itself in the global value chain by leveraging its logistical advantage, offering lower labor costs and flexible production capabilities.  The industrial output accounts for 28% of GDP.

Advanced manufacturing technologies are increasingly implemented across Turkey, with international companies leading the way.  The early adaptive industries are automotive and aviation manufacturing, both dominated by major international companies with a large number of local suppliers who must meet the latest standards and technological requirements.  In addition, durable consumer goods, electronics, chemicals, machinery, steel, construction, textiles, energy and mining industries are focused on implementing advanced manufacturing technologies.

Turkey needs to take concrete steps in digitalization and advanced manufacturing to move to a more innovative economy based on high productivity.  Through more advanced manufacturing technologies, Turkey can move further up the global value chain, ensure its future global competitiveness as well as boost a currently weakening economy.  Currently, approximately 30% of Turkey’s manufacturing output and 37% of its global exports (and 63% of exports to the EU) consist of medium- and high-tech products.  A priority of the Turkish Government is to bring medium- and high-tech product manufacturing up to the EU average, utilizing advanced manufacturing technologies.

Based on the size of the economy, over the next decade, Turkey is expected to invest about $2-$3 billion annually (1-1.5% of manufacturers’ revenue) to integrate industry 4.0 solutions into the manufacturing process.  The digitalization progress will necessitate further investment to upgrade the country’s technological infrastructure, such as in fixed and mobile broadband services as well as fiber optics.  It will also require transforming the education system to include a prioritization of Science, Technology, Engineering and Math (STEM) skills.  If Turkey fully adapts the industry 4.0 concept, it could save $10 billion/year in current manufacturing costs.  This analysis is based on a 4-7% estimated increase in productivity, considering total production costs.

In 2017, the Ministry of Science, Industry and Technology established the “Digital Transformation Platform in Industry,” a public-private-partnership with the aim of increasing competency and technological support for industrial enterprises.  The Turkish Government announced its first national incentives towards utilization of advanced manufacturing technologies in March 2019.  As a result, SMEs will be granted financial support of up to $200,000 for implementing projects involving big data, AI, IIOT, smart sensor technologies, autonomous robotic technologies and industrial cybersecurity.
Due to Turkey’s Customs Union with the European Union and accession talks for EU membership, it has access to the EU Horizon2020 Industry 4.0 funds.  These funds provide $0.5-$2.5 million in support for private sector projects in various Industry 4.0 headings.

Leading Sub-Sectors

Innovative materials/technical textiles:  Innovative materials/technical textiles are used in sectors such as aerospace, agriculture, construction and infrastructure, medical, energy, transportation, marine and defense.  Turkey’s total imports in this category (including composites) is around $2.5 billion.  The market is expected to grow between 4-7% annually.

Additive manufacturing:  The automotive, aerospace and defense, household appliances, jewelry and medical/dental industries started to use additive manufacturing in Turkey in 2014.  SMEs seek additive manufacturing primarily for the molding process and typically outsource this service.  Turkey accounts for 1.2% of global additive manufacturing use as of 2017.  Over 480, mostly polymer-based, 3D printers are used in manufacturing.  There is growing demand for advanced 3D printers and CAD and CAM programs, advanced printing materials (including biomaterials) and large-scale additive production capabilities.

Industrial Automation:  According to the Industrial Automation Association (ENOSAD), the industrial automation market in Turkey was valued at $1.5 billion in 2016, with an annual growth rate of over 12%.  It is expected to reach $3 billion within the next five years.

Many international companies present in Turkey also serve Russia, the CIS, the Middle East and North African markets, with an annual regional business volume of around $2.5 billion.

IIOT/Big Data and Analytics:  Some of the solutions used by Turkish companies include:

  • Supply chain and warehouse management processes – real-time tracking of demand, order fulfillment, manufacturing flow, returns, etc.
  • Production lines – real-time control of performance, product durability and safety
  • Predictive maintenance – real-time monitoring of industrial manufacturing devices allowing companies to predict when maintenance is required

Industry analysts estimate that the Turkish market size will reach a cumulative amount of $60 billion between 2017-2022, including sensors, optronics, M2M software and hardware, Artificial Intelligence, modeling and simulations, cloud services and cybersecurity applications.

Robotics:  There are 12,500 industrial robots in Turkey, with about half in the automotive industry.  According to 2018 statistics, countries with advanced robotics in manufacturing use 300 robots per 10,000 workers.  This number is just 19 in Turkey, leaving significant potential growth opportunities for robotics in manufacturing industries.

Augmented and virtual reality:  The use of AR- and VR-based systems in manufacturing in Turkey is still in its infancy; however, there is great interest in the market to adopt these technologies.  In the aviation, defense, automotive, electronics, durable goods and textile industries, a number of large companies use AR and/or VR to select parts in their respective warehouses, transmit repair instructions over mobile devices, simulate products and production processes and train workers.


Turkey ranks 16th among markets for U.S. manufacturing technology exports, according to the U.S. Department of Commerce’s International Trade Administration.  In Turkey, companies with the greatest demand for advanced manufacturing technology solutions are those active in the automotive, aviation, defense, durable consumer goods, electronics, chemical, machinery, steel, construction, textile, food processing, energy and mining industries.

For industry 4.0 applications emerging opportunities can be seen in information and material flows, supplier integration, product simulation and modeling and production process in the design phase, advanced materials, flexible production, big data analytics, enhanced cybersecurity and smart product and production lines to increase predictability.  In addition, there is a significant need for qualified solution partners and systems integrators.

A recent report by the Turkish Informatics Foundation indicates that 50% of manufacturers in Turkey plan to invest in industry 4.0 within the next 3 to 5 years, 20% still do not have any knowledge/strategy and the remaining 30% plan investments in 5 to 10 years.  In a 2018 survey conducted by the Scientific and Technological Research Council of Turkey (TUBITAK), the technologies that Turkish SMEs consider most important for their industry are automation and control systems, advanced robotics, and additive manufacturing.

Web Resources

Ministry of Industry and Technology:
Scientific and Technological Research Council of Turkey (TUBITAK):
Turkish Machinery Federation (MAKFED):
Turkish Industrial Automation Association (ENOSAD):
Turkish Composites Manufacturers Association:

Trade Events
Robot Investments Forum and Exhibition:
Process Automation Forum and Exhibition:
Eurasian Composites Show:
MAKTEK Eurasia:
WIN Eurasia:
IDC Smart Manufacturing Summit:
Smart Future Expo:
Smart Production Technologies and Digitalization Conference:

For further information on this section or for more on potential opportunities, contact:

Perim Akguner
Commercial Specialist
U.S. Commercial Service Turkey by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting

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