Italy Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Italy Defense Market Overview

The Italy defense budget is estimated to be $30.3 billion in 2023 and is expected to achieve a CAGR of more than 4% during 2024-2028. The Russian invasion of Ukraine is the primary incentive for increased defense spending, as the conflict has raised European tensions, exposed weaknesses in the West’s defense-industrial capacity and drained extant stocks of arms and ammunition.

Italy Defense Market Outlook, 2023-2028 ($ Billion)

Italy Defense Market Outlook, 2023-2028 ($ Billion)

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The Italy defense market research 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.

Market Size (2023) $30.3 billion
CAGR (2024-2028) >4%
Forecast Period 2024-2028
Historic Period 2019–2023
Key Sectors Naval Vessels and Surface Combatants, Missiles And Missile Defense Systems, Military Fixed-Wing Aircraft, Tactical Communications Systems, Military Land Vehicles, Military Simulation And Training, EOIR, Military Radar, And INS GNSS
Leading Companies Leonardo SpA, Fincantieri SpA, Avio SpA, Elettronica SpA, and Beghelli SpA

Italy Defense Market Drivers

The rapid modernization and new platform launches is one of the key factors driving Italy’s defense market. Italy continues to invest in new platforms across all domains and supports the modification of older systems. The Army is planning to acquire new and augmented equipment for its heavy mechanized brigades, several naval vessels are under construction, and the Air Force is both inducting the F-35 and partaking in the next-generation Tempest program.

Moreover, the Russia-Ukraine war has transformed Europe’s security and defense landscape. Italy has donated significant volumes of arms and equipment to Ukraine, increased contributions to NATO forward deployment and begun a revision of its overall defense posture in the face of a likely long-term confrontation with Russia.

Italy Military Doctrines and Defense Strategies

As with most NATO countries, Italian military doctrine is centered on maintaining an active-duty volunteer force of high-tech mechanized maneuver formations. Like many other countries, Italy also maintains smaller units of specialized light infantry in paratrooper, mountain (‘Alpini’), and amphibious roles. Its navy retains substantial expeditionary capabilities through its amphibious assault ships, aircraft carriers, and replenishment vessels, marking Italy as somewhat unique amongst European NATO members as being capable of independent power projection. Likewise, the Italian Air Force is invested in a force of over 30 strategic airlifting transport aircraft. Additionally, the Carabinieri is Italy’s Gendarmerie force, responsible for military policing, guarding critical infrastructure, and some counter-terrorism duties.

Besides fulfilling the principal role of defending the nation, Italy tends to view its strategic posture broadly through the lens of its membership in both the EU and NATO.

Italy Defense Market Segmentation by Sectors

The key sectors in the Italy defense market are naval vessels and surface combatants, missiles and missile defense systems, military fixed-wing aircraft, tactical communications systems, military land vehicles, military simulation and training, EOIR, military radar, and INS GNSS among others. The naval vessels and surface combatants is the largest market sector in Italy in 2023. The long-term nature of shipbuilding programs and the constraints of Italy’s overall defense posture means that it is unlikely that major new procurement projects for vessels will be announced in the coming years, as current and planned programs likely cover the specific force size that Italy aims for.

Italy Defense Market Analysis by Sectors, 2023 (%)

Italy Defense Market Analysis by Sectors, 2023 (%)

For more sector insights into the Italy defense market, download a free report sample

Italy Defense Market - Competitive Landscape

Some of the leading defense companies in Italy are Leonardo SpA, Fincantieri SpA, Avio SpA, Elettronica SpA, and Beghelli SpA among others.

Segments Covered in the Report

Italy Defense Sectors Outlook (Value, US$ Billion, 2019-2028)

  • Naval Vessels and Surface Combatants
  • Missiles and Missile Defense Systems
  • Military Fixed-Wing Aircraft
  • Tactical Communications Systems
  • Military Land Vehicles
  • Military Simulation and Training
  • EOIR
  • Military Radar


This report offers a detailed analysis of Italy’s defense market 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 –

  • Italy defense budget: detailed analysis of Italy’s 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: the procurement policy and process is explained. This is coupled with an analysis of Italian military doctrine and strategy to provide a comprehensive overview of Italy’s military procurement regulation.
  • Security Environment: political alliances and perceived security threats to Italy are examined; there help to explain trends in spending and modernization.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of Italy’s defense industry.

Key Highlights

• Drivers of Defense expenditure include the war in Ukraine, Mediterranean Security, Tensions with Russia, Commitments to the NATO Alliance, EU defense integration and an ongoing program of military modernisation.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of Italy’s defense market over the next five years
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Italy 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 Italy’s defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Italy government
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available

Lockheed Martin

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historical And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation
    • 2.6. Key Market Trends & Insights

  • 3. Military Doctrine And Security Environment

    • 3.1. Military Doctrine And Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy And Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness And Emerging Opportunities

    • 5.1. Market Attractiveness By Defense Sector
    • 5.2. Top Sectors in the Italian Defense Market
    • 5.3. Top Defense Segments By Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. Global Combat Air Programme
    • 6.3. Pattugliatore Polivalente D’Altura (PPA) Ships
    • 6.4. DDX Next-generation Destroyers
    • 6.5. Ocean-going Multi-purpose Mine Countermeasures (MCM) Vessel
    • 6.6. Modular Multirole Patrol Corvette (MMPC)
    • 6.7. U-212 NFS
    • 6.8. F-35A

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating In Italy
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

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