In February, Turkey successfully flew its first homemade prototype fighter jet, Kaan, with stealth capabilities and advanced weapons capacity. This came 13 years after development began, following Turkey’s expulsion from the F-35 program over the S-400 purchase from Russia. As defense spending rises due to global geopolitical instability, companies worldwide, including Turkey’s Turkish Aerospace Industries (TAI), are experiencing revenue growth.
Among defense contractors, there is a shift towards non-U.S. companies playing larger roles in the sector. China’s Aviation Industry Corp. is now the second-largest defense firm globally. European firms have maintained a steady share of the worldwide defense revenue, and Ukraine’s defense revenue has surged dramatically. In response to rising security challenges, there has been enhanced military spending globally, with NATO increasing defense budgets.
As tensions increase in regions like Ukraine, the Gaza Strip, and the South China Sea, nations are investing in defense to ensure self-reliance. Turkey, for instance, has pivoted towards its own domestic industrial base, moving from being a defense importer to an exporter. This shift is evident in Turkey’s investment in companies like TAI and Roketsan. Similarly, the United Kingdom is focusing on indigenous defense programs like the Tempest fighter, led by BAE Systems.
Globally, defense spending has risen steadily, reaching a record $2.4 trillion in 2023. With an increase in national supply chains and local champions, nations are seeking self-sufficiency in defense capabilities. In response to these trends, major defense contractors worldwide are experiencing revenue growth, reflecting a shift towards domestic industrial bases and increased national security expenditure.
