Italy Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030

Italy Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030

Summary

Italy Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Italy's defense budget has historically experienced limited growth or fluctuation due to political gridlock and a lack of consensus on national defense spending. The frequent changes in government and ideology have hindered consistent growth and made it challenging to define strategic end-goals. However, the budget witnessed robust and stable growth from 2021 to 2025, increasing from $29.1 billion to $38.1 billion during that period. The current Prime Minister, Giorgia Meloni, has prioritized long-term defense planning and aims to achieve 3.5% GDP defense spending by 2035. Consequently, the Italian defense budget is projected to rise over the forecast period. From 2026 to 2030, an increase in expenditure from $39.4 billion to $61.7 billion is anticipated, with a compound annual growth rate (CAGR) of 11.9%.

The primary catalyst for increased defense spending in Europe has been the Russian invasion of Ukraine, which has highlighted weaknesses in the West’s defense-industrial capacity and depleted existing stocks of arms and ammunition. The effectiveness of systems and strategies in Ukraine, such as advanced missiles and military drones, as well as the survivability of current platforms against these threats, have prompted a reassessment of platform procurement and strategies for waging 21st-century warfare. Despite these challenges, Italy maintains a sizeable military, boasting an air fleet of over 200 jets and a powerful navy equipped for undersea warfare, amphibious assaults, and power projection. Italy's commitments to NATO, various overseas deployments under the EU and UN, and ongoing procurement projects will shape the future of its defense planning.

Key Highlights

• Modernization of equipment and contribution to NATO are key factors driving defense expenditure
• Increased preference for domestic and European defense companies may impede the entry of non-European firms

Scope

This report offers a detailed analysis of Italy's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows -

• Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
• Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
• Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
• Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
• Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2024. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
• Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
• Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
• Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.

Reasons to Buy

• Determine prospective investment areas based on a detailed trend analysis of the Italy defense market over the next five years
• Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Italian market and identify the opportunities offered.
• Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
• Identify the major threats that are driving the Italian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
• Channel resources by focusing on the ongoing programs that are being undertaken by the Italian government
• Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

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