According to study, “Future of the Italian Defense
Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023”
some of the major companies that are currently working in the Italian defense
industry are Leonardo, Fincantieri, MBDA, Elettronica.
The Italian Armed Forces encompass
the Italian Army, the Italian Navy and the Italian Air Force. Some branches of
armed forces are marina militare, esercitoItaliano, aeronauticamilitare and
carabinieri. The Ministry of Defense (MoD) plays a major supporting role in the
Italian Armed Forces: itpromotes domestic weapons production and manufacturing.
Stockholm International Peace Research Institute (SIPRI) and The North Atlantic
Treaty Organization (NATO) are two organizations under the MOD.
The Italian defense industry is
structured as a pyramid, featuring at the top four big corporations: Finmeccanica,
Fincantieri, Avio and Iveco. These corporations act as contractors, so that
their output is made of complex weapon systems. Second layer defines handful of
smaller companies, those output consists of high-tech sub-systems or single
components like sensors, space and communication systems etc. In addition the
base of the pyramid is made by a hundred of small and medium companies that
work as subcontractors for services or components to major companies.
Italy holds a disproportionate
amount of emerging market debt. Protecting from the external threats and
maintaining the internal stability, the government allocated also recently
allocated 1.1% of its GDP towards defense purposes The Italy Fiscal Year 2018 budget
included US$18.1 billion in defense and security related expenditures.
Italy is the eighth-largest
exporter of major weapons in the world. These weapons are regulated in an ad
hoc process that favors the military and defense industrialists. There are much
of the military equipments are produced under European or US license. Italian
designed equipment face stiff competition from superior foreign weapons system.
Some of the defense weapons included are battle tanks, reconnaissance, armored
infantry fighting vehicles, armored personnel carriers, artillery and howitzer
systems, air defense systems, fighter and attack aircraft, communication
platforms, anti-tank systems, mortars, multiple rocket launchers, army
aviation, small arms and some rotor wings aircraft etc.
The major advantage of Italian defense
industry in the global market is it’s ability to produce a wide variety of
weapon systems and subsystems at lower prices than most of other producers. In
addition, key weakness is its technological base, weapons generally are not at
the leading edge of technology.
Different Italian military
requirements and standards have led to the development of systems that require
their own logistic infrastructure and a unique supply of spare parts whose cost
has increased substantially as weapon systems have grown increasingly
sophisticated.
Country is also planning to buy 60
NH-90s for the Army and 56 for the Navy at a total cost of €4 billion, with the
procurement due to wind up in 2023. The Italian defense industry expected to
focus on modernization of the armed forces by implementing various procurement
programs that include F-35 joint strike fighter project, FREMM frigates,
Typhoon multirole combat aircraft, NH 90 helicopters and Medium Extended Air
Defense System (MEADS) programs. It is anticipated that defense budget reach
USD 18.9 billion by 2023, with a cumulative value of USD 90.7 billion over the
forecast period.It is predicted that the defense budget will record a
relatively flat CAGR of 1.4% over the forecast period in contrast to the
negative CAGR of 1.8% registered during the historic period. This is primarily
due to the need of replacingan aging military hardware and equipment, in
addition to defending against domestic insurgencies such as organized crimes.
To know more,
click on the link below:
Related Reports:-
+91-9015378249
No comments:
Post a Comment