Security Competitive Profiles
Finmeccanica has seen revenue in its Defence and Security Electronics business unit fall from 2012 to 2013 because of reduced military and government spending in the European and US markets.
Whilst the company has a strong presence in several markets, diversification of its customer base internationally will play a key role in its continued development.
The company’s commitment to organic growth and research and development (R&D) spending will continue to solidify its position in the market as a high-end security technology supplier.
Its ability to market dual-use (military and security) technologies to new customers, including those in the civil market, will be critical in enhancing its international position.
Finmeccanica will continue to leverage partnerships with companies such as Cisco to grow security/IT capability and international presence.
Increasing competition in the security market from more-focused security providers will also dictate a more-concentrated security product line and market offering.
The company's current security strengths lie in the provision of secure communication solutions, network integration, and cybersecurity services through its Selex ES and DRS Technologies.
About this report
Frost & Sullivan anticipates that Finmeccanica will continue to enhance its security portfolio, focusing on the development of its communications and cybersecurity product lines. Divestment of noncore businesses, combined with a desire to diversify its customer base, will also lead to the company increasingly targeting nongovernmental security consumers. Its Defence and Security Electronics business unit has been affected by spending reductions.