Future of Italian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2017

The Italian defense budget is expected to increase at a CAGR of 0.59% during the forecast period (2013-2017), to reach US$28.8 billion by 2017

Wednesday 6 March 2013, Amsterdam

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The Italian government allocated US$25.6 billion for the total defense budget, which recorded a CAGR of 0.35% during the review period (2008-2012). However, the defense budget, which was estimated to be US$28.1 billion in 2012, is expected to increase at a CAGR of 0.59% during the forecast period (2013-2017), to reach US$28.8 billion by 2017. Cumulatively, US$141.0 billion is expected to be allocated to the Italian MOD for defense during the forecast period



The Italian common services expenditure includes research and development (R&D), planning, and administration services. During the review period, the common services budget was valued at US$5.4 billion in 2008 which increased to US$6 billion in 2012 at a CAGR of 2.80%. However, during the forecast period, this figure is expected to decrease at a CAGR of -8.99%, from US$7.7 billion in 2013 to US$5.3 billion in 2017. The gradual decline in expenditure on common services can be attributed to the gradual completion of a number of training and R&D programs that are to be executed over the forecast period. The Italian Army’s budget accounted for 33.2% of the overall defense function in 2012, followed by the Air force at 18.1%, and the Navy at 14.2%.

The Air force is expected to grow at the fastest rate during forecast period with expenditure in 2013 valued at US$3.3 billion, which is anticipated to grow at an estimated CAGR of 7.30% to reach US$4.4 billion in 2017. This high rate of growth is expected to be fuelled by the continuing procurement of Fighter planes and Multi Role Aircraft over the forecast period.


Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2017

Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2017

Publish date : February 2013
Report code : ASDR-47168
Pages : 164

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