Overview
Türkiye’s young, sizeable population, dynamic entrepreneurial class, and advantageous geographic position as a bridge between Europe and Asia have made the country an important manufacturing and distribution hub. Türkiye positions itself in the global value chain by leveraging lower labor costs and flexible production capabilities. Manufacturing has the highest share in the GDP, with 16.8% share in 2024.
Early adopters of advanced manufacturing in Türkiye include the automotive and aviation industries, both dominated by major international companies with many local suppliers who must meet the latest standards and technological requirements. In addition, the defense, electronics, chemicals, machinery, steel, construction, textiles, energy, and mining industries are focused on adopting advanced manufacturing technologies to remain competitive. In 2024, 40.3% of Türkiye’s manufacturing exports consisted of medium-tech products and 5.1% consisted of high-tech products. . The high-tech export share remains well below OECD and EU averages of 15 to 20%.
Over the next decade, Türkiye is expected to invest between $1 to $1.5 billion, annually, to integrate industry 4.0 solutions (referring to the fourth industrial revolution and the digital transformation across manufacturing industries) into the manufacturing process. Further investment is needed to upgrade Türkiye’s technological infrastructure, including funding for 5G solutions, fixed and mobile broadband services, and fiber optics. Türkiye’s path towards digitalization will also require prioritizing science, technology, engineering and math (STEM) skills in education. If Türkiye fully adapts the industry 4.0 concept, it could save $10 billion a year in current manufacturing costs based on an estimated 4-7% increase in productivity.
In 2021, the EU adopted the Carbon Border Adjustment Mechanism, which imposes taxes on imports if their carbon intensity exceeds EU emissions standards. Türkiye needs to heavily invest in cleantech solutions to meet the new EU standards and continue exporting to the EU, its largest trade partner. Collaboration with the World Bank has mobilized over $1 billion for industrial enterprises, SMEs, and green technology entrepreneurs. In addition, Türkiye’s partnership with the European Bank for Reconstruction and Development has enabled the Türkiye Industrial Decarbonization Investment Platform, which aims to mobilize up to €5 billion for green industry investments by 2030.
As Türkiye needs to progress in the twin digital-green transformation, the Government has been supportive of technology initiatives and major procurements. Two major initiatives stand out:
1. The Government is supporting the establishment of digital transformation centers and model factories, piloting emerging technologies and advanced manufacturing solutions within organized industrial zones and technology development zones (Technoparks) across Türkiye. One such center, MEXT, located in Istanbul, has assembled an ecosystem of over 100 global partners, showcasing 170 real world use cases in digitalization and sustainability, giving companies tangible examples they can implement.
2. Türkiye’s Ministry of Industry and Technology launched the HIT-30 (High Technology Investment Program) in July 2024, designed to position the country as a global high-tech manufacturing hub by 2030. The program allocates up to $30 billion in support—through grants, tax incentives, financing, and infrastructure facilitation—for strategic sectors across eight priority areas:
- Semiconductors (ingots, wafers, chip packaging, testing, MEMS technologies)
- Mobility (electric vehicles, batteries, hydrogen powered vehicles, high-speed rail, unmanned mobility solutions)
- Advanced manufacturing (industrial robots, additive manufacturing, precision machinery)
- Green energy (solar cells, electrolysers, wind systems, energy storage batteries, critical minerals processing)
- Healthy living (biotech pharmaceuticals, smart medical devices, advanced food technologies)
- Digital technologies (large scale AI models, cloud, data centers, digital products such as search engines and navigation services)
- Communications and space (LEO satellite systems, future telecom infrastructures, smart communication devices)
- Value based investments (vertical integration and support for supply chain components across high tech sectors)
Due to Türkiye’s Customs Union with the European Union, Türkiye has access to the Horizon Europe R&D funds, designed to support innovation in digital and green transformation as well as to the Digital Europe funds, aimed at accelerating Europe’s digital capacities across supercomputing, AI, cybersecurity, advanced digital skills, and deployment of Digital Innovation Hubs.
Leading Sub-sectors
Innovative Materials / Technical Textiles
Innovative materials/technical textiles are used in sectors such as aviation, agriculture, construction and infrastructure, medical, energy, transportation, and marine and defense. Türkiye’s total imports in this category (including composites) is around $2.6 billion.
Additive Manufacturing
The automotive, aerospace and defense, household appliances, machinery, jewelry, and medical/dental industries began using additive manufacturing in Türkiye in 2014. SMEs seek additive manufacturing primarily for the molding/sampling process and typically outsource this service. Türkiye accounts for 1.3% of global additive manufacturing use as of 2024 with a market size of $390 million. Over 600 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. In 2022, Turkish Aerospace Industries acquired the world’s largest electron beam 3D printer, enabling it to print large sized titanium aerostructures.
Industrial Automation
According to the Industrial Automation Association (ENOSAD), the industrial automation market in Türkiye was valued at $1.8 billion in 2024, with an annual growth rate of roughly 72%. Collaborative robots, modular automation systems, and in-factory 5G networks are the latest industrial automation trends in 2024.
Many international companies present in Türkiye also serve the Eurasian, Middle Eastern, and North African markets, with an annual regional business volume of around $1.5 billion.
IoT / Big Data and Analytics
Some of the big data and analytics usages common in Türkiye 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
In 2024, IIoT market sales in Türkiye totaled $2 billion, up 10% compared to 2023. As of 2024, there are over 10 million M2M subscriptions in Türkiye.
Robotics
There are 29,200 operational industrial robots in Türkiye, with about 30% in the automotive industry. According to 2024 statistics, countries with robotic capabilities in manufacturing use, on average, 162 robots per 10,000 workers. Türkiye uses 51 robots per 10,000 workers, leaving significant potential growth opportunity. Robots in Türkiye are most often used in the automotive industry, with over 260 robots per 10,000 workers (making it a top ten global market for robots used in the production of automobiles). Augmented and Virtual Reality
In the aviation, defense, automotive, electronics, durable goods, and textile industries, several 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. Further development of 5G networks will increase the market for industrial AR and/or VR applications.
Opportunities
According to the U.S. Department of Commerce’s International Trade Administration (ITA), Türkiye ranks 16th for U.S. manufacturing technology exports. Companies with the greatest demand for advanced manufacturing technology solutions in Türkiye include the automotive, aviation, defense, durable consumer goods, electronics, chemical, machinery, steel, construction, textile, food processing, energy, and mining industries.
For advanced manufacturing applications, there are emerging opportunities in product simulation and modeling, RPA technologies, advanced materials design, flexible production solutions, big data analytics and AI, enhanced cybersecurity, and predictive maintenance. In addition, there is a significant need for qualified solution partners and systems integrators in Türkiye.
For further information on this section or for more on potential opportunities, contact:
Perim Akgüner
ICT, Advanced Manufacturing and Advanced Materials Sector Leader
U.S. Commercial Service Türkiye
Perim.Akguner@trade.gov