This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/15/2019
Overview
                                                                                                                                            Unit: USD millions
 20172018
 
2019
(Estimated)
2020
(Estimated)
Total Local Production2,6902,7002,7602,800
Total Exports1,5901,6001,6601,700
Total Imports2,5202,5402,5602,635
Imports from the US
 
1,1101,1201,1401,200
Total Market Size3,6203,6403,7203,735
Exchange Rates 1 Euro =1.12971.18101.141.14

The above statistics are unofficial estimates.

Italy is an important European market for airport and ground support equipment.  Data recorded in 2018 demonstrates how the Italian airport network continues to drive economic growth and contributes substantially to European connectivity.  The growth trend in both passenger and cargo container movement that started in 2014 is expected to continue.  Italian airports handled over 185 million passengers last year, up 5.9 percent over the previous year.   Airports with the greatest passenger movement include Rome Fiumicino (~43 million), Milan Malpensa (24.7 million), Bergamo (~13 million), Venice (11.2 million), Catania (9.9 million).  Two airports that have registered substantial increases in passenger traffic are Naples (~10 million, + 15.8) and Palermo (6.6 million, +14.8 percent).  Air freight cargo activity saw a slight decrease (-0.5) registering 1.139 million tons of cargo transiting through Italian airports in 2018.  The primary airports with significant cargo traffic include Milan Malpensa (572,775 tons), Rome Fiumicino (205,879 tons) and Bergamo (123,032 tons).  In February 2017, FedEx opened an expanded European logistics hub at Malpensa airport's Cargo City, indicative of the significance of the Malpensa airport system.

The Italian airline market is fragmented with both full service and low-cost carriers.  Alitalia – Società Aerea Italiana (Alitalia SAI S.p.A.) is Italy’s flagship carrier.  In May 2017, UAE-backed Alitalia began bankruptcy proceedings and, at the time of this writing, the Ministry of Economic Development is receiving offers from other potential investors to partner with Delta and the Italian State Railways to relaunch the national airline.  Other Italian-owned charter airlines and low-cost carriers include Mistral Air, Blue Panorama, Easy Jet, Ryanair, Air Dolomiti, Air Italy (formerly Meridiana) and TUIfly. 


The National Agency for Flight Assistance, ENAV, provides air traffic control and navigation services.  The Italian Civil Aviation Authority ENAC has oversight of civil aviation including certification and control authority.  ENAC’s role is to improve security and safety systems such as runway extensions, anti-intrusion systems, scanners, metal and explosive detectors, tracking systems and other airport and ground support equipment and emergency systems and services. 

A key focus area is the Single European Sky, Europe’s flagship project for reforming air traffic management. The objective is to improve airport capacity, ground handling operations performance, and reduction of carbon footprint.  Air traffic is estimated to nearly double by 2030, and the foreseeable capacity crunch has led the European Commission, sustained by the Airports Council International (ACI) Europe, to ask Member States to develop national strategies.  The Italian market can be expected to expand with increased medium- and long-term investments, both private and public, for airport expansion, upgrading of existing structures and purchase of new equipment and systems. 

Leading Sub-Sectors
European Union (EU) Regulation n. 1087 published in October 2011 requires that all explosive detection systems (EDS) meet standard certain specifications by September 1, 2020.  Consequently, for passengers and hand luggage, international airports are gradually adopting the latest technologies to meet these mandatory requirements.   Italian airport authorities continue to focus on required upgrades.  A number of airports have yet to make the required investments including Turin, Naples, Venice, Genoa, Bologna, Verona, Ancona, as well as airports in the Apuglia Region and islands of Sardinia and Sicily.

Best prospects include anti-intrusion systems, automated baggage handling systems (BHS), approach surveillance radars, sea rescue equipment, precision approach path indicators and radars, digital x-ray systems, fire detection and extinguishing equipment and a broad range of services related to airport and ground handling operations.  For passengers and hand luggage, airports are also adopting the latest technologies in hand and window metal detectors (HMD and WMD), explosives trace detectors (ETD), explosive trace detection systems (ETDS) and liquid explosive detection (LAG) systems.  Other technologies with strong prospects include primary explosive detection systems (PEDT) and EDS for cargo luggage, as well as multi-level systems with threat image projection software for mail and parcels.

The U.S. industry is expected to maintain a competitive edge as it is recognized for its technological leadership in advanced products and quality standards. 

Opportunities
The Italian Government has worked actively to revamp this industry.  The government established an independent transport regulation authority in September 2013 responsible for regulating issues such as taxation and infrastructure plans at national airports, railways, roadways and ports.  Significant regulatory developments followed as well as the introduction of a new airport fee scheme, putting an end to a decade-long policy paralysis.

In 2014, the Italian Government initiated a review of its airport infrastructure with the objective of rationalizing spending and expansion strategies, as well as improving intermodal accessibility to strengthen competitiveness and increase economic growth.   The national airport plan was approved at the end of 2015, identifying airports of strategic value.  Three airports are considered strategic for intercontinental connectivity (Rome Fiumicino, Milan Malpensa, Venice), ten were identified as strategic under the Trans-European Transport Network (TEN-T) framework (Turin, Bologna, Pisa, Florence, Naples, Bari, Lamezia Terme, Palermo, Catania and Cagliari), and the remaining 25 were deemed of “national interest”.

Some airport infrastructure investments have been completed, others are underway and more to be seen in the coming years.  Investments are a mix of public, private and EU funding.  The Milan Airports management company Sea S.p.A. invested a total of $1.5 billion in infrastructure upgrades to support increased traffic for the World Expo 2015. A list of Italian airports that have presented master plans and investment values can be found in ENAC’s website at
https://www.enac.gov.it/aeroporti/infrastrutture-aeroportuali/master-plan.

Experts predict the total number of passengers transiting at the Rome Fiumicino Airport to reach 110 million by 2044.  Given its strategic international role, a major expansion plan continues in the Rome Fiumicino Airport managed by Aeroporti di Roma (AdR) S.p.A.  The project, which will run through 2044 and involves private investments of over $14 billion, was officially presented in December 2011 and is part of the City of Rome’s strategic growth plan to develop and implement an efficient infrastructure network.  The development plan is divided in 2 parts:  the first, in full swing, focuses on the expansion of the northern territory; the second part (awaiting authorization) will concentration on future expansion to the south and is a long-term project that will include the enlargement of the current airside and landside infrastructure. 

The new “E” International Area was inaugurated on December 21, 2016, adding 90,000 square meters, two boarding areas and a state-of-the-art commercial center.  Mid-term developments (expected by 2020) include the creation of new terminals, baggage handling systems and ground rapid transit systems.  Furthermore, airport infrastructure will be integrated with the transportation infrastructure in the wider context of an integrated, intermodal mobility plan with high speed rail service to Florence, Bologna, Venice, Milan and Naples.  The total investment by AdR, the City of Rome, ANAS (road infrastructure) and RFI (railways) is $8.7 million of which $4.8 million will be covered by TEN-T funding.


The Italian government does not typically purchase goods and services abroad unless they cannot be procured locally through domestic sources, which would include subsidiaries, branches and agents of U.S. companies.  In order to be considered as a source for Italian government purchases, we recommend that U.S. firms be established locally or represented by an agent/distributor.

Invitations to bid are published in the official European Gazette and in the official Italian Gazette (Gazzetta Ufficiale).  The “selling to the government” section in this document provides an overview of EU legislation regarding public procurement.  In Italy, for contracts below the community thresholds, the use of e-procurement platforms is widely established and encouraged by legislation.  The "Code of Contracts" (D.Lgs 163/2006), introduced by directives 2004/17/CE and 2004/18/CE, emphasizes the role of new technologies in support of the supplier selection process.  The adoption of purchasing portals ensures the principles of economy, efficiency, time savings, honesty, fair competition, equality, transparency and proportionality. 

Web Resources
Assaeroporti (Italian Airports Association):  http://www.assaeroporti.it/
Ministry of Infrastructure and Transportation: http://www.infrastrutturetrasporti.it
Aeroporti di Roma (AdR) S.p.A.: www.adr.it  
AdR expansion project:     
http://www.adr.it/web/aeroporti-di-roma-en-/azn-airport-expansion

Sea S.p.A.:  http://www.seamilano.eu/en
ENAC: www.enac-italia.it
ENAV SpA: www.enav.it
Gazzetta Ufficiale: www.gazzettaufficiale.it
Italian tax administration: http://www1.agenziaentrate.gov.it/english/

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


 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.