Future of the Italian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019
  • Published : February , 2014
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  • Number of Pages : 137
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  • Published By : Strategic Defence Intelligence



Report Overview

Synopsis
This report is the result of SDI’s extensive market and company research covering the Italian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
SUMMARY
Why was the report written? The Future of the Italian Defense Industry – Market Attractiveness, Competitive Landscape, and Forecasts to 2019 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Italian defense industry. What is the current market landscape and what is changing? Italy which is one of the largest defense spenders in Europe and tenth largest spender in the world is projected to spend US$147.2 billion on its armed forces during the forecast period. In 2014, the Italian government allocated US$27.67 billion for the total defense budget which recorded a CAGR of 5.18% during 2010 to 2014. Defense expenditure is inclusive of the expenditure on the defense function, homeland security, and other expenses. Italian defense expenditure is primarily driven by increasing terrorist threats, participation in peacekeeping initiatives, replacing the ageing military equipment, and the modernization of defense forces with advanced technology equipment. The defense function stood at US$19.13 billion in 2014 and is expected to increase at a CAGR of 3.09% during the forecast period, to reach US$22.32 billion in 2019. Capital expenditure will also see a marginal increase which is anticipated to grow at 5.16% due to the country’s heavy procurement pattern during the forecast period. The Italian defense industry is expected to focus on modernization of the armed forces by implementing various procurement programs that include F-35 Joint Strike Fighter project. Typhoon multirole combat aircraft, FREMM frigates, NH 90 helicopters, and Medium Extended Air Defense System (MEADS) program What are the key drivers behind recent market changes? Modernization of defense systems, participation in peacekeeping initiatives, and maintaining NATO, EU and UN stipulations expected to drive the Italian defense expenditure What makes this report unique and essential to read? The Future of the Italian Defense Industry – Market Attractiveness, Competitive Landscape, and Forecasts to 2019 provides detailed analysis of the current industry size and growth expectations from 2015 to 2019, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
SCOPE
The report provides detailed analysis of the current industry size and growth expectations from 2015 to 2019, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas. The report includes trend analysis of imports and exports, together with their implications and impact on the Italian defense industry. The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future. The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives. The report helps the reader to understand the competitive landscape of the defense industry in Italy. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
reason to buy
As per the SDI’s business outlook survey, 84% of the European respondents have quoted that the biggest concern for the defense industry in the coming 5 years are the impending global defense budget cuts. The economic crisis in Italy and across Europe has led to reductions in the defense budgets of many countries, including France, Greece and Poland, which are some of the top importing countries of Italian defense products. The cuts will decrease the procurement expenditure of these countries and have a negative impact on the order book of the Italian defense industry. The key procurement cutbacks made by Italy’s own MOD include: As a member of the EU, the Italian government has a policy to give priority to European-manufactured defense goods, which makes it more difficult for non-European defense companies to supply to the Italian defense market. The high capability of, and the prohibition of foreign direct investment in, the defense industry further reduces the scope for non-European defense companies. Moreover, the participation of the domestic defense industry in international development programs helps the domestic defense industry to acquire advanced technologies, which further narrows the opportunities for foreign firms keen to enter the market through technology transfers.



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