Italy’s defense industry maintains strong positions worldwide, sitting within the Top 10 across the world and claiming the number 4 spot in Europe. It’s made a turnover of $12 billion and boasts a workforce exceeding 50,000 people. The sector is the largest manufacturing industry in Italy and it specializes in high-tech integrated systems. At the forefront are major players like Leonardo, Fincantieri, Ge Avio Aero, Thales Alenia Space Italia, Avio S.p.A., and Elettronica, whose work extends to both the civil and military domains. Complementing these giants are over 300 small- and medium-sized enterprises (SMEs) across a well-connected network, which further strengthens Italy’s defense industry. The Italian Aerospace Industry Federation (AIAD) proves just how pivotal SMEs are to the sector as a whole. Its members are strategically distributed across clusters in Piedmont, Lombardy, Lazio, Puglia, Campania and Umbria. Two-thirds of the sector is dedicated to the supply of aircraft, spacecraft, and related devices, while the remainder focuses on manufacturing equipment like radars, flight recorders and engine control instruments. This industry is distinguished by its highly skilled workforce, exemplified by Leonardo’s collaboration with around 4,000 Italian SME suppliers supporting 52 Italian sites. International collaborations play a pivotal role in Italy’s aerospace and defense sector. The Boeing Dreamliner 787 sees Leonardo partnering with Boeing in the production of composite fuselage and horizontal stabilizers. On the defense front, the Joint Strike Fighter (JSF) program positions Italy at the forefront as the FACO in Northern Italy continues to assemble aircraft for both Italy and the Netherlands, while producing wing assemblies for the F-35 program worldwide. As Italy continues to play a central role in major international programs, the future looks promising. The FACO is particularly poised to assume a pivotal regional role as it anticipates increased orders across Europe due to the continuous war in the Ukraine and other simmering geopolitical tensions.