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Machinery Sector in Turkey

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Machinery Sector in Turkey

Machinery manufacturing continues to be one of the key growth drivers of the Turkish economy. This sector plays a crucial role in the development of Turkey’s greater manufacturing industry due in no small part to its capability to produce intermediate goods and to provide inputs to key sectors such as chemicals, construction, automotive, energy, te​xtiles, agriculture, and mining. The machinery manufacturing sector in Turkey is known for being R&D intensive – Turkey graduates over 35,000 engineers every year in mechanical fields – and for creating high value.

Turkey’s competitiveness in the machinery sector is driven by favorable input costs and strong enablers. Input costs include competitive labor cost, an affordable and reliable energy supply, and logistical advantages based on the geostrategic location of Turkey; enablers, on the other hand, include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.

Here are some essential facts and figures about the Turkish machinery sector:

  • The Turkish machinery sector more than quadrupled its revenues to reach USD 23 billion and doubled its workforce to hit 244,000 in 2018.
  • While global exports doubled, Turkey’s exports increased five times to reach USD 17.1 billion in 2018.
  • The export/import ratio of the industry has increased from 30 percent to 60 percent since 2003, indicating an ever-growing market with less dependency on imports.
  • As the 4thlargest export industry of Turkey, accounting for a 9 percent share in the country’s total exports, machinery products are shipped to more than 200 countries. 60 percent of total machinery product exports are shipped to the USA and EU countries, mostly to Germany, UK, France, and Italy.
  • Total imports of the machinery sector surpassed USD 28 billion in 2018, endorsing the strong demand from the domestic market.
  • Turkey’s agricultural machinery market reached USD 2.1 billion in 2018, making it the 4th in Europe.​
  • Turkey’s construction machinery market reached a record high of USD 3 billion in 2017, climbing to the 4thspot in Europe and 11th
  • Tukey’s HVAC sector stands out as a strong industrial base with USD 3.2 billion in value. It also functions as Europe’s manufacturing base for panel radiators, boilers, and air handling units (AHUs).
  • Turkey’s market for lifting and handling equipment reached USD 2.4 billion in 2018.​​​​

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/machinery.aspx


Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/machinery.aspx
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