Italy Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in italy, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Advanced Manufacturing
Last published date:

Overview 

Italy is the second-largest manufacturing country in Europe and is particularly strong in the manufacture of machinery, fashion items, food products, automotive parts, and pharmaceuticals. The advanced manufacturing sector plays a pivotal role in sustaining the Italian economy, allowing Italian manufacturers to produce higher-quality, customized products efficiently, enhancing productivity and fostering innovation. The sector encompasses technologies such as industrial internet of things, additive manufacturing, robotics, augmented reality and simulation software, cloud technologies, cybersecurity, big data analytics and machine learning, horizontal and vertical system integration and specific traceability technologies such as RFID. In 2025, the market size of the advanced manufacturing sector in Italy is expected to reach €4.6 billion (approximately $5 billion), a 10.3% growth over 2024.  

The Italian government’s advanced manufacturing incentive plan, known as “Piano Transizione 4.0,” has been playing a key role in the growth of the market. The plan allocates €13.4 billion in tax credits for investment in capital goods, intangible goods, R&D, innovation, and training. The credits can be claimed through 2025 for most technologies and, under certain conditions, through June 2026.  In 2024, the government launched a new incentive scheme, known as “Piano Transizione 5.0”, allocating €6.3 billion in tax credits designed to support companies in adopting innovative solutions, with a focus on digitalization, green technologies, and automation. The incentives cover a wide range of activities, including investments in research and development, upgrading production processes, and enhancing energy efficiency.  The credits can be claimed up for investments starting from January 2024 until December 2025.  

Leading Sub-sectors 

Additive Manufacturing (3D printing) 

The Italian Additive Manufacturing market generated a revenue of $451 million in 2023, and it is expected to reach $1.9 billion in 2030. Italian manufacturers are increasingly adopting additive technologies in their production processes, driven by government incentives programs supporting advanced manufacturing. In the global ranking of large-scale 3D printer manufacturers, Italy is placed 6th, after USA, China, Israel, Germany and Netherlands. According to research conducted by Metoree, a a digital directory and comparison tool for industrial products and manufacturers, Italy ranks 11th in the world for usage of 3D printing technologies in manufacturing and 4th in the world for usage growth rate. In 2023 4.7% of the world’s 3d printers were installed in Italy. Similarly, Italian 3D printing association AITA, (Associazione Italiana Tecnologie Additive) which includes manufacturers and users of 3D printing systems and accessories, recently conducted a survey among its members and found that the four major areas of application areas for 3D printing technologies in Italy are in the automotive, aerospace, biomedical, and jewelry/design/fashion industries. 

Industrial Internet of Things 

In 2023, the Italian market for industrial internet of things (IIoT) accounted for €1.7 billion. The primary applications of IoT in the Italian industrial sectors include smart factory, a market worth €905 million (+16% compared to the previous year) and smart logistics, worth €770 million (+8% compared to the previous year). Specifically, companies are adopting cyber physical systems that connect machinery, workers, and products to enable new production-management techniques and supply-chain planning.  25% of large Italian companies and 22% of Italian SMEs had undertaken a smart factory project in 2024. Manufacturers are also applying IoT to logistics, to improve traceability in the supply chain, to monitor the cold chain in food processing, and to improve safety in logistics hubs and fleet management.  

Opportunities 

The following technologies are eligible for incentives under the aforementioned “Piano Transizione 4.0,” and “Piano Transizione 5.0”: 

  • Advanced manufacturing solutions: autonomous, cooperating industrial robots with numerous integrated sensors and standardized interfaces.
  • Additive manufacturing: 3D printing, particularly for spare parts and prototypes; decentralized 3D facilities to reduce transport distances and inventory.
  • Augmented reality: augmented reality for maintenance, logistics, and SOP; display of supporting information, e.g., through glasses.
  • Simulation: simulation of value networks; optimization based on real-time data from intelligent systems.
  • Horizontal/vertical integration: cross-company data integration based on data transfer standards; precondition for a fully automated value chain (from supplier to customer, from management to shop floor).
  • Industrial Internet: network of machines and products; multidirectional communication between networked objects.
  • Cloud: management of huge volumes of data in open systems; real-time communication for production systems.
  • Cybersecurity: operation in networks and open systems; high level of networking among intelligent machines, products, and systems.
  • Big data and analytics: full evaluation of available data (e.g., from ERP, SCM, MES, CRM, and machine data); real-time decision-making support and optimization.

Resources


U.S. Commercial Service Italy:
Federico Bevini, Commercial Specialist
U.S. Commercial Service, U.S. Consulate Milan
Tel: +39 02 6268 8520
E-mail: federico.bevini@trade.gov

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility