Turkey’s annual defence expenditure is forecast to grow from $10.6bn in 2017 to $13.5bn by 2022, recording a compound annual growth rate of 5.88%, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of Turkey Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report forecasts the future trends of the Turkish defence industry.
The allocation for capital expenditure is expected to be an average of 24.1% from 2018 to 2022, whereas revenue expenditure allocation is projected to be 75.9% of the total defence budget.
Increasing focus on improving indigenous defence manufacturing capabilities and procurement of advanced defence equipment are the reasons for the expected reduction in capital expenditure allocation.
Turkey plans to acquire multi-role aircraft, missile defence systems, corvettes, and main battle tanks (MBTs) over the next five years.
The country’s homeland security (HLS) expenditure is anticipated to grow at a CAGR of 9.02% over the forecast period, to reach $2.4bn in 2022.
The rising attacks by IS terrorists, the threat of separatists and extremists, illegal immigration, drug trafficking, and dispute with Syria are the key factors that fuel the HLS expenditure.