Türkiye Infrastructure and Logistics: Demand for automated warehousing and material flow solutions in Turkish industry

A bridge between continents: How Turkey is becoming an automated logistics hub

Turkey, strategically located as a bridge between Europe, Asia, and the Middle East, is rapidly developing into a key global logistics hub. This unique geographical position is both Segen and a challenge: while it makes the country an indispensable node for international trade, it simultaneously creates enormous pressure to modernize its domestic infrastructure. Within this complex environment, vast potential is unfolding for automated warehousing and material flow solutions, which will fundamentally transform Turkish industry.

With a logistics market already valued at €135 billion – roughly 14 percent of the gross domestic product – the sector is the backbone of the Turkish economy. However, a closer look reveals a crucial gap: to date, only about 25 percent of industrial companies utilize automation technology. This low penetration stands in stark contrast to the estimated annual investment potential of up to US$4 billion, as determined by experts. This immense need for improvement is now being addressed by a proactive government policy that, with a comprehensive digital transformation strategy, is paving the way for Industry 4.0, artificial intelligence, and robotics.

From gigantic high-bay warehouses for consumer goods and driverless transport systems in the booming automotive industry to specialized deep-freeze solutions for the growing food sector – the demand for intelligent and efficient automation solutions is diverse and spans across industries. The following article analyzes the specific needs in detail, highlights pioneering projects, presents local manufacturing capabilities, and outlines the opportunities and challenges for technology providers in this dynamic market.

More than just trucks: How driverless systems and smart warehouses are transforming Turkish logistics

Due to its strategic geographical location between Europe, Asia, and the Middle East, Turkey is increasingly developing into a major logistics hub. This position as a bridge between continents makes the country an important node for international trade and creates significant demand for modern automation solutions in various industrial sectors.

Market potential and economic environment

The Turkish logistics market reached a volume of €135 billion in 2021, representing 14 percent of the country's gross domestic product. This scale underscores the immense importance of the logistics sector to the Turkish economy. The market for supply chain automation solutions is projected to reach US$270 million by 2025 and demonstrates strong growth momentum, driven by increasing demand for efficiency and advanced technologies such as artificial intelligence, the Internet of Things (IoT), and robotics.

Turkey boasts over 8,000 logistics and transport companies with approximately 850,000 trucks, representing the largest vehicle fleet in Europe. The total number of freight vehicles is 3.3 million, with 90 percent of domestic freight transported by road. This strong focus on road transport underscores the need for efficient warehousing and transshipment systems.

Automated storage and material flow systems

Development status and potential

Currently, only about 25 percent of Turkish industrial companies use automation technology in any form. This low penetration rate highlights the significant potential for investment in automated solutions. Industry experts estimate the annual market potential for automation investments at up to US$4 billion.

The Turkish government has recognized the central importance of digital transformation for industry. Under the leadership of the Ministry of Industry and Technology, a comprehensive strategy for digital transformation was developed and published as a strategy paper in 2018. This strategy examines all aspects of digital change and serves as a roadmap for the modernization of Turkish industry.

A key component of this strategy is the planned establishment of ten nationwide centers for digital structural change. These centers will advise and support at least 7,000 companies from various sectors on digitalization and automation issues.

Specific demand for automation solutions

The Turkish market shows particular demand for horizontal order pickers with ergonomic lifts and vertical order picking systems with lift heights of up to 9500 millimeters in large logistics hubs within the contract logistics sector. Fleet management systems for analyzing and optimizing forklift fleets are also gaining importance.

The market for automated guided vehicle (AGV) equipment in Turkey is estimated to reach US$54.35 billion by 2032 and is projected to grow at an annual rate of 13.58 percent between 2025 and 2032. These figures underscore the significant potential for automated material flow systems.

Automated storage systems and stacker cranes

High-bay warehouse implementations

Turkey has already implemented several significant projects in the field of automated high-bay warehouses. A prime example is Mecalux's project for Hayat Kimya, one of the largest self-supporting automated warehouses in Europe, with a storage capacity of 161,000 pallets. This facility demonstrates the willingness of Turkish companies to invest in large-scale automation projects.

Tadım, a trading company specializing in walnuts and other dried fruits, has opened an automated warehouse in Gebze, capable of storing over 5,300 pallets of finished products. The stacker cranes operate at a travel speed of 220 meters per minute and a lifting speed of 66 meters per minute, ensuring high efficiency. The company has increased its storage capacity by 143 percent.

Technical specifications and requirements

Storage and retrieval machines are rail-guided vehicles used for storing and retrieving goods in fully or semi-automated high-bay warehouses. They are an integral part of efficient supply chains. The loads moved range from small parts in boxes and standard pallets to entire vehicles or metal coils weighing several tons.

Operating conditions in Turkey require special consideration of temperature ranges from minus 30 degrees Celsius to plus 50 degrees Celsius, high accelerations and travel speeds exceeding 340 meters per minute, as well as current peaks during simultaneous travel and lifting movements.

Rail-guided storage and retrieval machines

Market development and technology

Rail-guided storage and retrieval machines, or stacker cranes, form the core of automated storage and retrieval systems. They handle the automated storage and retrieval of pallets and small parts within the warehouse. Their tall and compact design ensures efficient space utilization in high-bay warehouses and automated small parts storage systems.

The Turkish market shows particular demand for storage and retrieval machines with load capacities from 0.1 to 5 tons. These are available with telescopic forks for single or double-deep storage and are characterized by low weight, high efficiency and small approach dimensions.

Local manufacturing capacities

Turkey has several local manufacturers of automated guided vehicles (AGVs). ROBOS Mühendislik is positioned as a pioneer and the most experienced company in the production of AGV systems according to international standards. The company possesses its own expertise, including all software, automation, and mechanical design of the vehicles it manufactures.

TRANSOLT has specialized in driverless transport systems since 2010 and develops autonomous vehicle systems with an experienced team in the fields of embedded systems, mechatronics, robotics, and image processing. The company has made a name for itself in the sector through quality, sustainability, and reliability.

Heavy-duty systems and container handling

Heavy haul logistics requirements

Turkey has established itself as an important production location for various industries. From January to July 2025, vehicle production increased moderately by 1.4 percent. Approximately eight out of ten vehicles produced in Turkey are exported, which places considerable demands on heavy-load logistics.

The Turkish market shows a demand ranging from standard pallet storage systems to large-scale heavy-lift systems capable of handling goods up to 31 meters long or containers weighing up to 18,000 kilograms. Road transport is the most common mode of transport for heavy loads in Turkey, utilizing specialized heavy-duty trucks and trailers for oversized cargo.

Container terminal systems

The DP World Yarimca container port is one of the largest container terminals in Turkey, with a capacity of 1.3 million TEU. The terminal is equipped with environmentally friendly technologies aimed at low carbon emissions and supply chain efficiency. It utilizes state-of-the-art technology management systems with centralized activity planning.

Automation in container terminals has improved the overall performance of the terminal. The layout of the automated handling system increased the port's storage capacity. In a newly proposed automated layout, storage area capacity increased by 27.27 percent.

Turkey plans to build three ports in three major seas, including the Çandarlı Port in Izmir on the Aegean Sea, the Filyos Port in Zonguldak on the Black Sea, and the Taşucu Container Port in Mersin on the Mediterranean. These investments are creating additional demand for automated container handling systems.

Deep freezing and refrigeration solutions

Market development for cold storage

The Turkish cold storage market, estimated at US$1.94 billion in 2025, is experiencing robust growth and is projected to expand at an average annual growth rate of 7.03 percent from 2025 to 2033. This expansion is driven by several key factors, particularly the booming food and beverage sector, especially in the dairy, meat, seafood, and confectionery industries.

Frozen storage segments are showing the strongest growth within the Turkish cold storage market. This growth is driven by the increasing consumption of frozen food, particularly in urban areas. The longer shelf life achieved through freezing allows for greater efficiency in food distribution and reduces waste along the supply chain.

Specific requirements for deep-freeze systems

SSI Schäfer was commissioned by the Turkish ice cream manufacturer Sanset to construct and equip a fully automated deep-freeze warehouse at minus 28 degrees Celsius. As general contractor for the logistics project, SSI Schäfer built a four-aisle high-bay channel warehouse with more than 11,000 pallet spaces, along with the necessary conveyor technology, at Sanset's production site in Kirklareli.

The market is showing demand for deep-freeze and refrigeration solutions that operate at temperatures as low as -18 degrees Fahrenheit (equivalent to -28 degrees Celsius). These extreme temperature conditions require specialized automation technology and appropriate material selection for system components.

This innovative technology promises to fundamentally change container logistics. Instead of stacking containers horizontally as before, they will be stored vertically in multi-story steel racking structures. This not only allows for a drastic increase in storage capacity within the same area, but also revolutionizes all processes at the container terminal.

More information here:

• Container high-bay warehouses and container terminals: The logistical interplay – expert advice and solutions

Industry-specific applications

Food industry and frozen food logistics

The Turkish food industry includes leading companies such as the Ülker Group, one of Turkey's largest food companies, producing a wide variety of products including biscuits, chocolate, snacks, beverages, and dairy products. Pinar Dairy is known for its high-quality dairy products, while Kerevitaş specializes in frozen food production, offering a diverse range of frozen foods such as vegetables, fruits, fish, meat, and baked goods.

Increasing investments in modern, large-scale cold storage facilities in key regions support the predicted segment dominance. The availability of advanced freezing technologies further contributes to market growth and competitiveness.

automotive industry

Turkey is one of Europe's largest car importers, importing 626,000 new cars in 2023, while simultaneously producing 1.4 million vehicles domestically. In the 2019 ranking of Turkey's 500 largest industrial companies, automotive companies ranked 5th in terms of export value, 2nd in terms of gross value added, and 4th in terms of production revenue.

The automotive industry in Turkey has developed rapidly due to the technological infrastructure, high labor capacity and solutions for automotive logistics, thanks to its geographical location advantages and customs union agreements with the countries of the European Union.

Transport logistics and multimodal systems

The Turkish State Railways (TCDD) plans to build a total of 20 multimodal logistics centers across the country by 2023. These centers will primarily be connected to seaports and airports via the rail network. This initiative alone is creating significant demand for automated warehousing and material flow systems.

Turkey aims to further improve its range of modern transport and warehousing services by building multimodal logistics centers. These centers require state-of-the-art automation technology to efficiently integrate the various modes of transport.

Heavy-duty logistics for special applications

Turkey is developing into an important location for heavy haulage logistics. Universal Transport opened a branch in Turkey in 2016 and has had its own fleet of 60 vehicles from the outset. In addition to local transport, the company's clear objective is to focus on transport from Europe to the Middle East and the Caspian Sea region.

The Turkish market for lifting and conveying equipment reached US$1.7 billion in 2019. As a growth driver with a high value-added ratio, mechanical engineering plays a key role in Turkey's economic growth. With approximately 30,000 manufacturers and 400,000 employees, the sector has made significant progress over the past 20 years, achieving average export growth of 15 percent.

Digital Transformation and Industry 4.0

Strategic Initiatives

Industry 4.0 has been on the Turkish political agenda for over ten years and is gaining increasing importance. The Turkish Ministry of Industry and Technology has published several reports outlining Industry 4.0 strategies. Turkey boasts a large skilled workforce and a young, working-age population, offering significant potential for automation applications.

The Turkish national strategy for digital transformation is actively creating the conditions for the wider use of digital twin technology across all sectors. Strategic programs led by public institutions guide companies, particularly small and medium-sized enterprises (SMEs), through structured digital maturity models that now integrate simulation-based tools.

Investments in automation technology

As a result of this positive development, Turkish industry is increasingly investing in automation and digitalization. Small and medium-sized enterprises (SMEs) in particular have a significant need to catch up in these areas. German technology providers enjoy a high reputation in Turkey, creating opportunities for both sales and cooperation.

The Turkish mechanical engineering industry, supported by Turkish Machinery, focuses on Industry 4.0, digitalization, robotics, and automation. Turkish suppliers are particularly competitive internationally in the areas of castings, forgings, sheet metal parts, milling and turning, gears, springs, linings and seals, as well as special fasteners and plastic injection molding.

Challenges and market barriers

Qualifications and skilled workers

One of the limiting factors in automation is the still insufficient qualification of the workforce for operating and maintaining complex systems. Many Turkish companies lament the lack of qualified personnel, which is all the more important for Industry 4.0 applications.

German automation specialists like Festo are in close contact with Turkish universities and other institutions. The focus is on educational initiatives, as the shortage of qualified personnel is a major obstacle in Industry 4.0 applications.

Willingness to invest and financing

A major obstacle to investment in automation technology is the insufficient level of spending on equipment in many companies. This stems from, on the one hand, a lack of knowledge about the possibilities of automation technology and, on the other hand, the fear that such investments will not pay for themselves quickly enough.

However, price plays a major role in the procurement decisions of manufacturing companies. Roughly two-thirds, or approximately 800 million US dollars, of the Turkish automation market is supplied by foreign manufacturers.

Market fragmentation

The Turkish logistics market is highly fragmented. No single company controls even one percent of the market. 95 percent of trucks belong to sole proprietorships. Turkey's largest logistics company handles up to 3,000 transactions per day and has a market share of 0.7 percent.

This fragmentation makes it difficult to implement large automation projects, as many small players lack the necessary resources for extensive investments. On the other hand, it offers opportunities for modular and scalable automation solutions.

Regional focus areas and industry clusters

Istanbul as a logistics center

Istanbul is the most important logistics hub. Almost 40 percent of Turkish industry is located on the Bosphorus. The city benefits from its strategic location as a bridge between Europe and Asia. Istanbul boasts the most modern logistics infrastructure in the country and the highest concentration of automation companies.

Digital solutions are used more frequently in Istanbul than in the rest of Turkey. The most commonly used solutions are computer-aided manufacturing and computer-aided project management. The city acts as an innovation hub for logistics automation and attracts international investment.

Izmir and the Aegean region

Izmir is another important logistics hub with well-developed infrastructure. The most commonly used digital solutions in Izmir are computerized warehouse management and ERP systems. The region benefits from its proximity to Europe and its excellent port connections.

HUGO BOSS operates its largest production facility in Izmir, demonstrating what Industry 4.0 looks like in practice. The so-called Smart Factory showcases networked machines, in-depth data analysis, and flexible processes.

Ankara and Central Anatolia

In Ankara, automation systems and computer-aided manufacturing are most commonly used, albeit at a lower level. The capital is developing into an important center for research and development in the field of automation technology.

The region benefits from its proximity to government institutions and research institutes. Several Turkish universities and research institutions are working on the development of automation technologies.

Digital boom: Opportunities for automated warehousing and logistics solutions

Growth forecasts

The global market for automated container terminals is projected to reach a revenue of US$31.27 billion by 2037, with an average annual growth rate of more than 7.7 percent. Turkey, as a key transit country, is expected to benefit disproportionately from this growth.

The global market for automated guided vehicle (AGV) equipment is projected to grow from US$3.23 billion in 2025 to US$8 billion by 2035, representing an average annual growth rate of 9.5 percent. Turkey is considered a key growth market.

Technological developments

Turkey will soon switch to 5G technology, and the digital infrastructure is to be improved immediately, at least for the manufacturing sector in industrial zones. This applies particularly to companies that rely on cloud solutions.

Turkey is still in the early stages of developing artificial intelligence. A national AI strategy is under development and is intended to lay the foundation for intelligent automation solutions.

International partnerships

International players such as Huawei, Cisco, and Equinix are involved in local infrastructure projects. Huawei operates its largest research center outside of China in Istanbul, and Cisco is supporting Türk Telekom with its nationwide 5G rollout.

China's leading electric car manufacturer BYD is planning a multi-billion dollar investment in Turkey. A factory is to be built in the industrial city of Manisa in the west of the country, producing 150,000 electric and hybrid vehicles annually. Such large investments create additional demand for automated production and logistics systems.

Turkey offers significant opportunities for providers of automated warehousing and material flow systems due to its geographic location, growing industrial sector, and strategic government initiatives for digital transformation. Demand spans all of these areas, from standard automation solutions to highly specialized heavy-duty and deep-freeze systems. Cross-industry expertise is particularly sought after, as the Turkish market encompasses a wide variety of industrial applications.

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Industry focus areas: B2B, digitalization (from AI to XR), mechanical engineering, logistics, renewable energies and industry

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