Italy’s defense expenditure decreased from US$18.1 billion in 2012 to US$15.4 billion in 2016, reflecting a negative CAGR of 3.95%.This reduction can be attributed to the country’s struggling economy and the government’s attempt to reduce Italy’s overall expenditure. However, this trend is expected to change considering Italy’s plan to modernize its defense equipment and strategic initiative to counter terrorism. The defense expenditure over the forecast period is projected to rise from US$14.8 billion in 2017 to US$16.5 billion in 2021, at a CAGR of 2.75%. The country is estimated to maintain the budget allocation towards capital expenditure to an average of 14.6% over the forecast period

Key Findings

  • During 2012-2016, Italian defense expenditure registered negative growth of -3.95%, decreasing from US$18.1 billion in 2012 to US$15.4 billion in 2016
  • Defense expenditure is anticipated to register a positive CAGR of 2.72% over 2017-2021and reach a value of US$16.5 billion in 2021
  • Over the forecast period, the country’s budget for homeland security is expected to be US$33.9 billion cumulatively
  • The key areas of investment are expected to be frigates, fighters and multi-role aircraft, missile defense systems, transport and utility helicopters, and amphibious ships

Strategic Defence Intelligence’s report - Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021 offers detailed analysis of the industry with market size forecasts from 2017-2021. This report sheds light on factors that influence demand in the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following:

  • Defense industry market size and drivers: detailed analysis of the defense industry during 2017-2021, including highlights of the demand drivers and growth stimulators. It also provides a snapshot of the country’s expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to the army, navy, and air force. It also details the key challenges faced by defense market participants within the country
  • Porter’s Five Force analysis of the defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities from 2016 to 2026
  • Competitive landscape and strategic insights: including an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Reasons To Buy

  • Identify and track the global defense market and make regional comparisons to effectively target new revenue streams
  • Understand the importance of being led by the defense ministries in the military procurement market and define your strategies with insight on what your customers really want by analyzing recent orders, technical specifications, and the country’s expected investment pattern during 2017-2021
  • Make correct business decisions based on detailed analysis of the defense industry from 2017-2021,which includes the total competitive landscape of the sector with detailed profiles of the top domestic and foreign defense manufacturers along with information about their products, alliances, recent contract wins, and financial analysis
  • Determine prospective investment areas by gaining an in-depth understanding of the industry in terms of market opportunities
  • Channel resources by identifying various military requirements that are expected to generate revenues across different sectors during 2017-2021