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

Konrad Wolfenstein

7 hours ago

Türkiye Infrastructure and Logistics: Demand for automated warehousing and material flow solutions in Turkish industry – Image: Xpert.Digital

Sleeping giant awakens: How Turkey is becoming a hotspot for automated logistics

Bridge between the 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 central global logistics hub. This unique geographical position is both Segen and a challenge: While it makes the country an indispensable hub for international trade, it simultaneously creates enormous pressure to modernize its domestic infrastructure. This tension is unfolding enormous potential for automated warehousing and material flow solutions that will profoundly transform Turkish industry.

With a logistics market already valued at €135 billion – approximately 14 percent of gross domestic product – the sector is the backbone of the Turkish economy. But a closer look reveals a crucial gap: To date, only about 25 percent of industrial companies use automation technology. This low penetration stands in stark contrast to the annual investment potential of up to $4 billion estimated by experts. This immense pent-up demand is now being fueled by proactive government policies that are paving the way for Industry 4.0, artificial intelligence, and robotics with a comprehensive digital transformation strategy.

From gigantic high-bay warehouses for consumer goods to automated guided vehicles in the booming automotive industry to specialized freezer solutions for the growing food sector – the demand for intelligent and efficient automation solutions is cross-industry and diverse. The following article analyzes the specific needs in detail, highlights groundbreaking projects, presents local manufacturing capabilities, and highlights the opportunities and challenges facing technology providers in this dynamic market.

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

Turkey is increasingly becoming a major logistics center due to its strategic geographical location between Europe, Asia, and the Middle East. This position as a bridge between continents makes the country a key hub 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, equivalent to 14 percent of the gross domestic product. This magnitude underscores the immense importance of the logistics sector to the Turkish economy. The market for supply chain automation solutions was estimated at $270 million in 2025 and is showing strong growth momentum with increasing demand for efficiency and advanced technologies such as artificial intelligence, the Internet of Things, and robotics.

Turkey has more than 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

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

The Turkish government has recognized the critical importance of digital transformation for industry. Under the leadership of the Ministry of Industry and Technology, a comprehensive digital transformation strategy was developed and published as a strategy paper in 2018. This strategy paper addresses all aspects of digital transformation 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 transformation. These centers are intended to advise at least 7,000 companies from various sectors on digitalization and automation issues and support their implementation.

Specific demand for automation solutions

The Turkish market is showing particular demand for horizontal order pickers with ergonomic lifts and vertical order pickers with lifting heights of up to 9,500 millimeters in large logistics centers in the contract logistics sector. Fleet management systems for analyzing and optimizing forklift fleets are also gaining importance.

The market for automated guided vehicle equipment in Turkey is estimated to reach $54.35 billion by 2032 and is expected to grow at a CAGR of 13.58 percent between 2025 and 2032. These figures underscore the significant potential for automated material handling 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 Europe's largest self-supporting automated warehouses 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 for walnuts and other dried fruits, has opened an automated warehouse in Gebze, where over 5,300 pallets of finished products are stored. The stacker cranes move at a travel speed of 220 meters per minute and a lifting speed of 66 meters per minute, enabling high efficiency. The company has increased its storage capacity by 143 percent.

Technical specifications and requirements

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

The 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 of over 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 heart of automated storage and retrieval systems. They handle the automated storage and retrieval of pallets and small parts in the warehouse. Their tall and compact design ensures efficient use of space in high-bay warehouses and automated small parts warehouses.

The Turkish market is showing 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. ROBOS Mühendislik is positioned as a pioneer and most experienced company in the production of automated guided vehicle systems according to international standards. The company has its own expertise, including all software, automation, and mechanical design of the vehicles it produces.

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 established a reputation in the sector for its quality, sustainability, and reliability.

Heavy-duty systems and container handling

Heavy-duty logistics requirements

Turkey has established itself as an important production location for various industries. Vehicle production increased moderately by 1.4 percent from January to July 2025. Around eight out of ten vehicles produced in Turkey are exported, placing considerable demands on heavy-duty logistics.

The Turkish market demonstrates demand for everything from standard pallet warehouses to large-scale heavy-duty systems capable of handling goods up to 31 meters in length or containers weighing up to 18,000 kilograms. Road transport is the most common mode of transport for heavy loads in Turkey, with specialized heavy-duty trucks and trailers used for transporting oversized loads.

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 the latest technology management systems with centralized activity planning.

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

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

Freezing and cooling solutions

Market development for cold storage

The Turkish cold storage market, estimated to be worth $1.94 billion in 2025, is experiencing robust growth and is expected to expand at a compound 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, specifically in the dairy, meat, seafood, and confectionery industries.

The 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, especially in urban areas. The longer shelf life achieved through freezing enables greater efficiency in food distribution and reduces waste along the supply chain.

Specific requirements for freezer systems

SSI Schäfer was commissioned by the Turkish ice cream manufacturer Sanset to construct and equip a fully automated deep-freeze warehouse operating 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 at temperatures as low as minus 18 degrees Fahrenheit, equivalent to minus 28 degrees Celsius. These extreme temperature conditions require specialized automation technology and appropriate material selection for system components.

Your container high-bay warehouse and container terminal experts

Container high-bay warehouses and container terminals: The logistical interplay – Expert advice and solutions - Creative image: Xpert.Digital

This innovative technology promises to fundamentally change container logistics. Instead of stacking containers horizontally as before, they are stored vertically in multi-tiered steel rack structures. This not only enables a drastic increase in storage capacity within the same space but also revolutionizes the entire processes in the container terminal.

More about it here:

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

How Turkey is becoming a hub for automated logistics – Multimodal logistics centers: How transport is changing in Turkey

Industry-specific applications

Food industry and frozen logistics

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

Increasing investments in modern, large-scale freezer 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 automobile importers, importing 626,000 new cars in 2023, while producing 1.4 million vehicles locally. In the 2019 ranking of Turkey's 500 largest industrial companies, automotive companies ranked fifth in terms of export value, second in terms of gross value added, and fourth in terms of production turnover.

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

Transport logistics and multimodal systems

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

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

Heavy-duty logistics for special applications

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

The Turkish lifting and handling equipment market reached USD 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 industry has made significant progress over the past 20 years, with average export growth of 15 percent.

Digital Transformation and Industry 4.0

Strategic initiatives

The topic of 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 containing Industry 4.0 strategies. Turkey has a large skilled workforce and a young, working population, which offers considerable potential for automation applications.

The Turkish National Strategy for Digital Transformation is actively creating the conditions for the broader use of digital twin technology in all sectors. Strategic programs led by public institutions are guiding companies, especially small and medium-sized enterprises, through structured digital maturity models that now integrate simulation-based tools.

Investments in automation technology

As a result of this positive development, increasing investments are being made in automation and digitalization in Turkish industry. Small and medium-sized enterprises, in particular, have a lot of catching up to do in these areas. German technology providers enjoy a high reputation in Turkey, thus 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 internationally competitive, particularly in castings, forgings, sheet metal, milled and turned parts, gears, springs, linings and seals, as well as specialty 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 workers to operate and maintain complex systems. Many Turkish companies complain about the shortage of qualified personnel, which is even 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 measures, as the shortage of qualified personnel is a key obstacle in Industry 4.0 applications.

Willingness to invest and financing

A major obstacle to investing in automation technology is the insufficient level of equipment expenditure in many companies. This is due, on the one hand, to insufficient knowledge of the possibilities of automation technology and, on the other, to the fear that such investments will not pay off quickly enough.

However, price plays a major role in manufacturing companies' procurement decisions. A good two-thirds, approximately USD 800 million, 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 are owned by 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 complicates the implementation of large-scale 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 focal points and industrial clusters

Istanbul as a logistics center

The most important logistics hotspot is Istanbul. 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 country's most modern logistics infrastructure and the highest concentration of automation companies.

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

Izmir and the Aegean Region

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

HUGO BOSS operates its largest production facility in Izmir, where it demonstrates what Industry 4.0 looks like in practice. The so-called Smart Factory showcases networked machines, in-depth data analytics, 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 automation technology.

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

Digital upswing: Opportunities for automated warehousing and logistics solutions

Growth forecasts

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

The global market for automated guided vehicle equipment is expected to grow from $3.23 billion in 2025 to $8 billion by 2035, with a compound annual growth rate of 9.5 percent. Turkey is considered an important 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 the industrial zones. This applies especially to companies that rely on cloud solutions.

Turkey is still in its early stages in the field of artificial intelligence. A national AI strategy is being developed and is intended to lay the foundation for intelligent automation solutions.

International partnerships

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

China's leading electric car manufacturer BYD is planning a 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-scale investments create additional demand for automated production and logistics systems.

Turkey's geographical location, growing industrial sector, and strategic government initiatives toward digital transformation offer significant opportunities for providers of automated warehousing and material handling systems. Demand spans all of these areas, from standard automation solutions to highly specialized heavy-duty and deep-freeze systems. Cross-sector expertise is particularly in demand, as the Turkish market encompasses a wide variety of industrial applications.

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