World defense boom, Leonardo eighth group by turnover

Listen to the audio version of the article

The numbers of defense multinationals in 2022 mark a decisive growth: their aggregate turnover increased by 4% on 2021 and in 2023 a +6% of revenues is expected compared to last year. All with a performance, on the Stock Exchange, of +34.6% during 2022 (compared to -11% of the world index). In the sector, dominated by US companies, Leonardo is the eighth global player in terms of turnover, Fincantieri sixth in terms of investments.

Meanwhile, global defense spending exceeded $2 trillion for the first time in 2021 (+0.7% on 2020 and +12% on 2012, in real terms). The data emerge from the annual report by the Mediobanca Research Area which examined the annual accounts of 240 global multinationals (which overall, in 2022 out of 2021, show a turnover of +13.3% and investments of +17.5 %) and focused on the 30 main global defense groups with individual revenues exceeding 1.5 billion euros, of which 15 are based in the US, 10 in Europe and five in Asia.

Record spending

According to the report, total defense spending therefore reached an all-time high of 2,113 billion dollars (2.2% of global GDP), equal to 5.8 billion dollars a day. 37.9% is headed by the United States (801 billion), followed by China with 13.9% (293 billion), India (3.6%), the United Kingdom (3.2%) and Russia (3. 1%); Italy is eleventh with 1.5% of the world total (32 billion, equal to 88 million a day).

The ranking changes if the incidence on GDP is considered: first places for the countries of the Middle East and North Africa, with Russia in 11th position (4.1%), the United States in 15th (3.5%), Ukraine in 19th (3.2%), China in 63rd (1.7%) and Italy in 76th (1.5%, it was 1.4% in 2012 and 2.1% in 1988). As requested by NATO in 2014, Italy is gradually increasing its defense spending, with the aim of reaching the threshold of 2% of GDP.

Rising revenues

In 2022, the aggregate turnover of the 30 global groups mainly specializing in defense was 432 billion dollars; of these, 316 billion are estimated to be generated exclusively by activities relating specifically to Defense (+4% on 2021 and +10.5% on 2019). The panorama, underlines the report, is dominated by US players, with a 74% share of the total, followed by European groups with 22% and Asian ones with 4%.