Overview
Türkiye is an aerospace hub for markets in Europe, the Middle East, the Caucasus, and North Africa. Given Türkiye’s proximity to developed and emerging markets (over 140 locations are within a three-hour flight from Istanbul), as well as Istanbul’s role as a financial center, Türkiye’s aviation and aerospace sectors are poised for continued growth. Due to the expansion of private airlines, the number of domestic and international flights has increased significantly over the past decade, leading to a surge in total passenger and cargo traffic.
Türkiye’s airports served more than 230 million passengers in 2024. According to ACI Europe’s 2024 Annual Traffic Report, Istanbul is now Europe’s busiest air cargo airport, handling 1.97 million tons of cargo – a 39.6% increase from the previous year.
Istanbul Airport has become Europe’s busiest passenger airport and currently ranks second globally in hub connections, with its 80 million passengers in 2024. Sabiha Gokcen, Istanbul’s other airport, served 40 million passengers in 2024.
New private airlines, including low-cost airlines, have emerged in recent years. Maintenance, repair, and overhaul services have grown in Türkiye, with several new MRO centers recently established in Istanbul. Turkish Technic—the MRO arm of Turkish Airlines—operates major maintenance hubs in Istanbul’s Atatürk (ISL), Istanbul Airport (IST), Sabiha Gökçen (SAW), and a facility in Ankara (ESB). Türkiye is also expanding its engine MRO capabilities. The Turkish Engine Center (TEC)—a JV with Pratt & Whitney is based at the Sabiha Gokcen Airport.
On the military side, ASFAT (Military Factory and Shipyard Management) is positioning itself as a regional defense MRO hub. With 27 factories and 10 naval shipyards. Turkish Airlines flies to 52 domestic destinations from seven hubs and to 271 international destinations in 131 countries. THY currently has 386 aircraft and holds around 3.4% of the global market. Turkish MRO companies like THY Technic, Pegasus Technic, and others are also competing to increase their share of the MRO market and expand their customer portfolios.
Overall growth in the aviation market has also been buoyed by the private jet market. Currently there are 120 private jets owned by businesses, 66 private jet charter companies and 42 air taxi operators. These numbers are expected to increase. The government has prioritized growth of the aviation sector, as evidenced by a variety of incentives to attract both customers and airlines. As low-cost airlines have become more popular, regulations pertaining to fares have been revised, and discounts in airport service, landing, and passenger fees, as well as tax reductions for ticket fares and jet fuel, have been implemented. THY has a free float of 50.88% on the stock exchange, with the remaining 49.12% of shares owned by the Türkiye Wealth Fund. The airline has recently signed several bilateral service agreements. The Directorate General of Civil Aviation is active in the international arena. Construction of new airports and aviation infrastructure continues.
Defense Systems
Türkiye’s defense sector is undergoing rapid expansion, with the 2024 budget reaching $40.6 billion and projected to rise to $46 billion in 2025. The government is prioritizing industrial self-sufficiency and export growth, supported by major infrastructure investments and strategic programs in air, land, naval, and space domains. Within this landscape, autonomous and uncrewed systems (UxS), along with robotics and AI-enabled defense technologies, are emerging as priority areas. Türkiye is channeling resources into autonomous transport, unmanned aerial, land, and maritime systems, and robotics applications that integrate directly with broader defense modernization goals.
For U.S. companies, this creates opportunities in advanced subsystems—such as propulsion, sensors, communications, AI software, and counter-UAS solutions—as Türkiye’s industry remains heavily reliant on imported high-tech components despite strong domestic design capacity. At the same time, closer NATO alignment and international co-production efforts underscore that partnerships and joint ventures will remain the most effective path for U.S. firms seeking market access in this evolving and strategically important sector.
Space Programs
The Turkish Space Agency (TUA) was established in December 2018 to develop technologies for rocket launches and space exploration, reporting to the Ministry of Industry and Technology, while holding financial and administrative autonomy. TUA consolidates national space strategy and serves as the principal liaison to international space entities. TUA coordinates GoT-funded space research center activities, in collaboration with Turkish Aerospace Industries (TAI), Roketsan (Türkiye’s leading rocket producer), and Turksat (semi-private satellite organization).
In 2021, Türkiye allocated nearly $1 billion to its space program. This program consists of ten targets, including a lunar mission in 2026. In 2024, the TUA, in partnership with U.S. company Axiom Space sent the first TurkiTUA, astronaut to space as part of a larger program for Türkiye to expand its space exploration capabilities.
In a landmark achievement, Türksat 6A, the first fully domestically produced communications satellite, was launched by SpaceX on 8 July 2024, entered geostationary orbit at 42° East, and commenced service in 2025, thereby increasing Türkiye’s satellite coverage from 3.5 billion to 5 billion people. With over 81% of its subsystems, software, and ground stations produced domestically, Türkiye now joins just 11 countries capable of indigenously producing such a satellite.
Leading Sub-sectors
- Aircraft / aircraft parts
- MRO activities
- Satellites and launch services
- Civil aviation and air traffic control systems
Opportunities
The Turkish aerospace market is heavily import-reliant, particularly for air platforms and related equipment. U.S. companies have the largest share of this market (followed by European and Japanese competitors), providing a wide range of aircraft, helicopters, and other air platforms, as well as subassemblies, aircraft parts/components, landing systems, radar systems, x-ray and scanning equipment, ground control equipment, safety/security systems, communications equipment, runway and landing lighting, automated landing systems, avionics, and more. The build-operate-transfer (BOT) model is the preferred airport development model. The State Airports Authority (DHMI) remains the largest procurement authority for air traffic control equipment, navigation aids, airport infrastructure, and airport security systems.
For further information on this section or more on potential opportunities, contact:
Ceren Okumus
Commercial Specialist
U.S. Commercial Service Türkiye
Ceren.Okumus@trade.gov