Table of Contents:
An evolving geopolitical context
In 2023, global defense spending reached a new all-time high, reaching 2,443 billion dollars, an increase of 6.8% compared to 2022. This increase was mainly fueled by growing geopolitical tensions, in particular due to the conflict in Ukraine, but also by the crises in the Middle East, Sudan and Myanmar. The analysis conducted by the Mediobanca Research Area, on the occasion of the event “The Defense era: capital and innovation in the current geopolitical cycle”, highlighted how this trend has had a significant impact on the financial statements of the main companies in the sector and on their returns on the
stock exchange.
The defense market in numbers
The Mediobanca report highlights that the turnover of the global defense industry reached almost 615 billion euros in 2023, an increase of 9.8% compared to the previous year. This data underlines the dynamism of the sector, which is rapidly adapting to new global security needs. In Italy, the country is confirmed as one of the pillars of the industrial base of European security, with leading companies such as Leonardo and Fincantieri dominating the market
.
The prospects for the Italian defense industry
The Italian defense industry is characterized by significant diversification and development. Leonardo and Fincantieri, both under state control, operate as prime contractors in the most important segments of the market. However, the landscape is enriched by a network of small and medium-sized enterprises that play a crucial role, specializing in individual apparatuses or subsystems. In 2023, Italian defense companies generated an aggregate turnover of more than 40.7 billion euros, with a workforce that exceeds 181,000 units
.
Investments and innovation in the sector
Another important aspect is the increase in investments in the sector, which grew by 46.5% in 2023 compared to 2021. This trend is indicative of a growing commitment to innovation and research, with research and development expenditures averaging 6% of revenues. The sector’s profitability is showing signs of improvement, with an ebit margin growing from 5.7% in 2021 to 6.2% in 2023. Italian family businesses, in particular, are proving to be better performing, thanks to more agile and flexible structures
.
