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
Aerospace and Defense
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Overview 

In 2024, U.S. defense exports to Italy totaled $306 million while civil aerospace exports to Italy totaled $1.04 billion. The Italian aerospace, space, and defense markets represent a robust and vital part of Italy’s economy. Italy’s defense sector is a crucial pillar for European security, particularly with its strengths in aerospace, electronics, and shipbuilding. The combination of large, state-backed companies and nimble, innovative small- and medium-sized enterprises (SMEs) has resulted in a sector that demonstrates consistent growth and profitability.

Italy’s largest defense contractor Leonardo has a U.S. footprint (Arlington, VA; Philadelphia, PA;) employing about 8,000 employees in the U.S. where the company operates through several divisions specialized in the aircraft, helicopter, electronics and critical infrastructure fields. Leonardo DRS Electro-Optical & Infrared Systems business unit in Dallas, Texas designs and produces infrared sensors and sub-systems that support aviation, ground vehicles, soldier and commercial markets.  

The collaboration with European and U.S. industries highlights Italy’s strong role in international commercial and defense programs. In Italy, Leonardo partners with Boeing on the 787 Dreamliner program, producing composite fuselage and horizontal stabilizers in Southern Italy; and is a primary industrial partner of Lockheed Martin (LM) in the Joint Strike Fighter (JSF) program. Owned by the Government of Italy (GOI) and operated by Leonardo and Lockheed Martin, the Final Assembly and Check-Out (FACO) line in Cameri (Northern Italy) assembles Italian and Dutch F-35s and is taking on a significant regional role as additional orders come in from other countries.   

Opportunities 

The 2024-26 Italian Defense Multi-Year Planning document (DPP) allocates $30.2 billion in resources for 2025 (1.31% of GDP) and $30.1 billion for 2026 (1.26% of GDP).  An additional $620 million (2025/26) is allocated by the Ministry of Enterprises and Made in Italy (MiMiT) for technologically innovative defense projects. The DPP prioritizes countering emerging maritime threats and strengthening advanced capabilities, such as the renewal of underwater, surface, and airborne platforms, and the enhancement of joint 5th generation aircraft.  

Italy has announced defense spending will reach 2% of GDP by the end of 2025 and requested a 10-year period to reach 5% with “year-by-year flexibility”. The U.S. Mission to Italy will continue to strongly advocate for U.S. businesses seeking public contracts with the Italian government/military. Engagements to weigh in on large value pursuits will help offset the U.S. – Italy overall trade deficit. 

The U.S. aerospace and defense industries are highly regarded worldwide for their innovative technologies, reliability and after-sale-service and training, making U.S. firms competitive in the Italian defense market. U.S. companies seeking to enter the Italian market should work through a local agent, distributor or representative. Attending trade shows in the region is an excellent opportunity to network, in addition to U.S. Commercial Service (CS) Italy export assistance to identify suitable partners. 

Relevant public-administration acquisitions that exceed thresholds are carried out via public procurement tenders published on the EU’s Tenders Electronic Daily (TED). For information on public procurement in the EU, see the relevant section of the Country Commercial Guide for the European Union.  

Resources 

Electronic Marketplace of the Public Administration (MePA)  
Italian Official Gazette (public tenders)

U.S. Commercial Service Italy:  
Maria Calabria, Commercial Specialist 
U.S. Commercial Service, U.S. Embassy Rome 
Tel: +39 06 4674 2427 
E-mail: maria.calabria@trade.gov 

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