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Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

The Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

Synopsis

This report offers detailed analysis of the Italian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -
- The Italian defense industry market size and drivers: detailed analysis of the Italian defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. 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 capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities:list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Italian defense industry.

Scope

- Italy’s defense budget stands at US$18.1 billion in 2018 and is expected to reach US$18.9 billion in 2023, with a cumulative value of US$90.7 billion over the forecast period.
- It is anticipated that the defense budget will record a relatively flat CAGR of 1.41% over the forecast period in contrast to the negative CAGR of 1.85% registered during the historic period.
- This is primarily due to the need to replace aging military hardware and equipment, in addition to defending against domestic insurgencies such as organized crimes.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Italian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues over the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Italian defense industry covering sections including demand drivers, Key Trends , and latest industry contracts


1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defence Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military Doctrine and Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Ongoing procurement programs
3.1.6. Future procurement programs
3.1.7. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.8. Social, Political and Economic Environment & Support for Defense Projects
3.1.9. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Italian annual defense expenditure is anticipated to grow at a CAGR of 1.41% over the forecast period
3.2.2. Modernization of defense systems, peacekeeping initiatives, maintaining NATO, EU, and UN stipulations, and increasing terrorism activities are expected to drive Italian defense expenditure
3.2.3. Defense expenditure as a percentage of GDP is expected to average 0.8% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. The majority of Italy’s defense budget is allocated for revenue expenditure
3.3.2. Overall capital expenditure is expected to grow at a CAGR of 1.97% over the forecast period
3.3.3. Common services leads the defense budget allocation with 37.5% share during 2013 to 2017
3.3.4. Common services to account for the largest share of the Italian defense budget
3.3.5. Per capita defense expenditure to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security expenditure to post a CAGR of 0.90% over the forecast period
3.4.2. Homeland security expenditure in Italy is largely driven by threats of terrorism, mafia wars, cyber security issues, and rising anarchist groups
3.4.3. Terrorism Index rates Italy as a “moderately affected” region
3.4.4. Italy faces threats from terrorist organizations
3.4.5. Italy has a score of 2.8 on the Terrorism Index
3.5. Benchmarking with Key Global Markets
3.5.1. Italian defense expenditure expected to increase significantly over the forecast period
3.5.2. Italy is one of the largest defense spenders in the world
3.5.3. Italy to spend an average of 0.8% of its GDP on defense over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Market Categories by Value (US$ Million) - Forecast Period Projections
3.6.2. Multi-Role Aircraft
3.6.3. Physical Security Critical Infrastructure Protection
3.6.4. Land-based C4ISR
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports to remain constant over the forecast period
4.1.2. Germany, France, and the UK have entered the import market in competition with the US
4.1.3. Aircraft, naval vessels and sensors were the key defense imports during 2013-2017
4.2. Export Market Dynamics
4.2.1. Falling exports is a concern for Italy’s domestic military industry
4.2.2. Asia and the Middle East to account for a major portion of Italian defense exports
4.2.3. Aircraft was the main exported defense product during 2013-2017
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of the supplier: medium
5.1.2. Bargaining power of the buyer: high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: low
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. The Italian defense industry is largely driven by government regulation and policy
6.1.2. Restrictive defense policies will discourage foreign investment
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Procurement Policy and Process
6.2.3. Technology transfer provides good market entry opportunities
6.2.4. Research and development collaborations offer market access
6.2.5. Joint ventures, partnerships, and licensing agreements are key market entry strategies into the Italian defense industry
6.3. Key Challenges
6.3.1. Defense budget cuts across Europe challenge domestic defense companies
6.3.2. Restrictive foreign policy poses a challenge for non-European companies to enter the Italian defense industry
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Leonardo: Overview
7.2.2. Leonardo: Products
7.2.3. Leonardo: Recent Announcements and Strategic Initiatives
7.2.4. Leonardo: Alliances
7.2.5. Leonardo: Recent Contract Wins
7.2.6. Leonardo: Financial Analysis
7.2.7. Fincantieri: Overview
7.2.8. Fincantieri: Defense Products
7.2.9. Fincantieri: Recent Announcements and Strategic Initiatives
7.2.10. Fincantieri: Alliances
7.2.11. Fincantieri: Recent Contract Wins
7.2.12. Fincantieri: Financial Analysis
7.2.13. MBDA: Overview
7.2.14. MBDA: Defense Products
7.2.15. MBDA: Recent Announcements and Strategic Initiatives
7.2.16. MBDA: Alliances
7.2.17. MBDA: Recent Contract Wins
7.3. Key Private Companies
7.3.1. Elettronica: Overview
7.3.2. Elettronica: Products
7.3.3. Elettronica: Recent Announcements and Strategic Initiatives
7.3.4. Elettronica: Alliances
7.3.5. Elettronica: Recent Contract Wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. Gross Domestic Product per Capita
8.1.2. Gross Domestic Product, current US$ Billion
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per USD
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (Percentage of GDP)
8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
8.1.10. Goods Exports as a Percentage of GDP
8.1.11. Goods Imports as a Percentage of GDP
8.1.12. Services Imports as a % of GDP
8.1.13. Services Exports as a % of GDP
8.1.14. Net Foreign Direct Investment (BoP, current US$ Billion)
8.1.15. Net FDI as a % of GDP
8.1.16. Mining, Manufacturing, Utilities Output (US$ Billion)
9. Appendix
9.1. About SDI
9.2. Disclaimer
List of Tables
Table 1: Italian Army Strength
Table 2: Italian Navy Strength
Table 3: Italian Air Force Strength
Table 4: Italy - Ongoing Development and Procurement Programs
Table 5: Italy - Future Procurement Programs
Table 6: Italy -Top 10 Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Italy Defense Expenditure (EUR Billion & US$ Billion), 2014-2023
Table 8: Italy GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2023
Table 9: Italian Defense Budget Split between Capital and Revenue Expenditure (%), 2014-2023
Table 10: Italy Defense Capital Expenditure (EUR Billion & US$ Billion), 2014-2023
Table 11: Italian Defense Budget Split Between Military Services (Army, Navy, Air Force and Common Services) (%), 2014-2023
Table 12: Italy - Defense Budget Breakdown by Service (EUR Billion), 2014-2023
Table 13: Italy - Defense Budget Breakdown by Service (US$ Billion), 2014-2023
Table 14: Italian Per Capita Defense Expenditure (US$), 2014-2023
Table 15: Italian Homeland Security Expenditure (EUR Billion & US$ Billion), 2014-2023
Table 16: Terrorism Index, 2018
Table 17: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 18: Italy- 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
Table 19: Offset Regulations in Italy
Table 20: Italian Parliamentary Budget Approval Timetable
Table 21: Italian Joint Development Programs for Missile Defense Systems
Table 22: Italy - Top 10 Defense Suppliers by Value (US$ Million), 2018-2023
Table 23: Competitive Landscape of the Italian Defense Industry
Table 24: Leonardo - Product Focus
Table 25: Leonardo - Alliances
Table 26: Leonardo - Recent Contract Wins
Table 27: Fincantieri - Product Focus
Table 28: Fincantieri - Alliances
Table 29: Fincantieri - Recent Contract Wins
Table 30: MBDA - Product Focus
Table 31: MBDA - Alliances
Table 32: MBDA - Recent Contract Wins
Table 33: Elettronica - Product Focus
Table 34: Elettronica - Alliances
Table 35: Elettronica - Recent Contract Wins
List of Figures
Figure 1: Italy Defense Expenditure (EUR Billion), 2014-2023
Figure 2: Italy Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Italian GDP Growth and Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4: Italian Defense Budget Split between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Italy Defense Capital Expenditure (EUR Billion), 2014-2023
Figure 6: Italy Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Italian Defense Budget Split Between Army, Air Force, Navy and Common Services (%), 2014-2023
Figure 8: Italy - Defense Budget Breakdown by Service (EUR Billion), 2014-2023
Figure 9: Italy - Defense Budget Breakdown by Service (US$ Billion), 2014-2023
Figure 10: Italian Per Capita Defense Expenditure (US$), 2014-2023
Figure 11: Italian Homeland Security Budget (EUR Billion), 2014-2023
Figure 12: Italian Homeland Security Budget (US$ Billion), 2014-2023
Figure 13: Terrorism Heat Map, 2018
Figure 14: Terrorism Index, 2018
Figure 15: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 18: Multi-Role Aircraft (US$ Million), 2018-2023
Figure 19: Physical Security CIP Market (US$ Million), 2018-2023
Figure 20: Land-based C4ISR (US$ Million), 2018-2023
Figure 21: Italy - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 22: Italian Defense Import Trend, 2013-2017 (TIV values)
Figure 23: Italian Defense Imports by Country (%), 2013-2017
Figure 24: Italian Defense Imports by Category (%), 2013-2017
Figure 25: Italian Defense Export Trend, 2013-2017 (TIV values)
Figure 26: Italian Defense Exports by Country (%), 2013-2017
Figure 27: Italian Defense Exports by Category (%), 2013-2017
Figure 28: Industry Dynamics - Porter’s Five Forces Analysis
Figure 29: Leonardo - Revenue Trend Analysis (EUR Billion), 2013-2017
Figure 30: Leonardo - Net Profit Trend Analysis (EUR Million), 2013-2017
Figure 31: Leonardo - Operating Profit Trend Analysis (EUR Million), 2013-2017
Figure 32: Fincantieri - Revenue Trend Analysis (EUR Billion), 2013-2017
Figure 33: Fincantieri - Net Profit Trend Analysis (EUR Billion), 2013-2017
Figure 34: Fincantieri - Operating Profit Trend Analysis (EUR Million), 2013-2017
Figure 35: Italy - GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 36: Italy Gross Domestic Product (current US$ Billion), 2015-2025
Figure 37: Italian Exports of Goods and Services (LCU Billion), 2005-2014
Figure 38: Italian Imports of Goods and Services (LCU Billion), 2005-2014
Figure 39: Italy Gross National Disposable Income (US$ Billion), 2005-2014
Figure 40: Italy LCU per US$, 2015-2024
Figure 41: Italian Market Capitalization of listed Companies (US$ Billion), 2005-2012
Figure 42: Italian Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
Figure 43: Italian Government cash surplus/deficit as a Percentage of GDP (LCU), 2005-2012
Figure 44: Italy Goods Exports as a Percentage of GDP, 2005-2014
Figure 45: Italy Goods Imports as a Percentage of GDP, 2005-2014
Figure 46: Italy Services Imports as a Percentage of GDP, 2005-2014
Figure 47: Italy Services Exports as a Percentage of GDP, 2005-2014
Figure 48: Italy Net Foreign Direct Investment (current US$ Billion), 2005-2014
Figure 49: Italy Net FDI as a Percentage of GDP, 2005-2014
Figure 50: Italy Mining, Manufacturing, Utilities Output (US$ Billion), 2005-2014

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