Manufacturing and industry are primarily developed in the Marmara region of Turkey, with the cities of Istanbul, Kocaeli, Tekirdağ, Bursa, and Sakarya offering high levels of production and opportunities for investment.
Due to its high levels of industrial development, Kocaeli is the province with the highest per capita income in Turkey. Data shows that national per capita income in Turkey stands at $17,000 USD in 2025, however, in Kocaeli it reaches approximately $25,000 USD.
The 12th Largest Shipbuilding Nation in The World
Istanbul, Kocaeli, Bursa, and Yalova are major hubs for shipbuilding, hosting several large-scale shipyards. Ranked 12th globally, Turkey is among the world’s leading shipbuilding nations. The Turkish industry, which is capable of producing special-purpose vessels and military ships, will further increase with the new Pendik Port project.
How is The Automotive Industry in Turkey?
Bursa, along with Balıkesir and İzmir serve as major centres for the Turkish automotive industry. Bursa accounts for more than half of the entire automotive production in Turkey. Manisa and Kütahya join Samsun and Kayseri as other cities where automotive factories operate. BYD and Chery, Chinese automotive giants, are preparing to establish car factories worth $1 billion USD in Manisa and Samsun.
Turkey’s Textile Production and Manufacturing
The cities of Istanbul, Kocaeli, and Bursa are the heart of Turkey’s textile industry – carrying out manufacturing, producing, and exporting in huge levels. This makes Turkey one of the world’s largest producers and exports of textiles, with Istanbul the main hub.
TABLE 1. TURKISH INDUSTRY OUTPUT (BILLION DOLLAR)
Looking at the development of Turkish industry over the past five years, data shows that there has been significant growth in global rankings and production lines.
While Turkey ranked as the 15th largest industrial economy in the world in 2020, it has since risen to 12th place in 2025. The country expanded its industrial output value from $200 billion USD to $400 billion USD, expanded exports, and created nearly one million new jobs in industrial sectors. The Turkish industry workforce has now reached 6.75 million employees in 2025, with per capita production value now approaching $60,000 USD.
In terms of per capita production value, Turkish industry ranks among the top ten globally. This figure reflects a higher level of productivity compared to countries including: Spain, Poland, and Mexico. The Turkish Ministry of Industry, in its 2030 Technology and Industry Strategy document, set multiple targets for making Turkey one of the world's top ten industrial powers in the next five years (Table 1).
GRAPH 1. TURKEY’S R&D SPENDING BY YEARS (BILLION DOLLAR)
A key factor behind the fast development of Turkish manufacturing and industry in recent years has been the significant increase in R&D expenditures. Turkey spent $7.68 billion USD on R&D in 2020, and by 2025, this figure had increased to $19.52 billion USD. By the end of 2030, annual R&D spending is projected to reach $42.96 billion USD. Currently, R&D expenditures account for 1.4% of total national income, and the long-term goal of the country is to permanently raise this to over 2% (Graph 1).
GRAPH 2. GLOBAL INDUSTRY OUTPUT SHARE OF TURKEY (%)
Data shows that between 2002 and 2020, Turkey increased its share of global industry from 0.57% to 0.85%. By the end of 2025, this global share reached 1.41%. By 2030, Turkey is targeting to raise its share to above 2%, with latest projections indicating it could reach a peak of 3% by the end of 2050 (Graph 2).
TABLE 2. TURKEY’S INDUSTRY EXPORT BY SECTOR (BILLION DOLLAR /2024)
Turkey’s largest industrial sectors currently are the automotive and chemical industries. The country also has a highly developed mining sector, along with processing and manufacturing facilities. According to the data, Turkey exports approximately $6 billion USD worth of mining products.
The Turkish iron and steel industry also stand out with the ninth-largest production volume in the world. Producing more iron and steel than several neighbouring European countries, Turkey’s industry is spread across cities including: Hatay, Karabük, Zonguldak, Kocaeli, and Kütahya. The cities of Hatay and Karabük are home to the largest factories for high-volume iron and steel Production.
With $35 billion USD in exports, the Turkish textile industry is considered the largest in the world. Many developed countries, including the United States, the United Kingdom, and France, import substantial volumes of textiles from Turkey (Table 2).
Where to Invest in Turkey’s Industrial Sector
Investors seeking opportunities in Turkey’s industrial sector are likely to benefit most from focusing on the Marmara region and destinations close to major ports for easier exporting and importing of goods. Manufacturing in Turkey is only rising, the time to invest is now.
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