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AICS [Italy]

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Last reviewed: 16th October 2024

Snapshot

The Italian Army plans to procure as many as 1050 tracked IFVs to replace 200 Dardo IFVs currently in service with its mechanised units, as well as its M113 fleet.

According to the Italian MoD's 2022-2023 multi-year policy document (DPP), EUR2.142 billion ($2.511 billion) will be invested in the programme between 2022 and 2035. Reportedly, the programme will have an overall cost of approximately EUR6.050 billion ($6.93 billion) including support costs.

Deliveries are reportedly scheduled to take place between 2026 and 2035.

Feasibility studies were announced to have begun in February 2024 and are set to last two years.

According to an MoU announced between the German Rheinmetall and Italian Leonardo on 3 July 2024, the Lynx KF41 is the expected platform for the AICS programme as part of a "double ticket" order with the KF51 Panther chosen for Italy's MBT programme. Whilst not a contract award, the MoU marks a significant step in the programme's future.

Formally known as Armoured Infantry Fighting Vehicle (AIFV), the programme has gone through further naming interactions, including "A2CS" and now "AICS".

Summary

Programme value:
$16.4 billion (Actual)
Units required:
1050 (Actual)
Award year:
2025
Status:
Selected
Type:
Procurement - new
Systems:
KF41 Lynx - In-progress
CV90 - Unsuccessful
ASCOD CBP IFV - Unsuccessful
Unit cost:
$9.4 million (Estimated)
PGO:
95% ?

Annual expenditure

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Annual units funded

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Summary

Programme value:
$16.4 billion (Actual)
Units required:
1050 (Actual)
Award year:
2025
Status:
Selected
Type:
Procurement - new
Systems:
KF41 Lynx - In-progress
CV90 - Unsuccessful
ASCOD CBP IFV - Unsuccessful
Unit cost:
$9.4 million (Estimated)
PGO:
95% ?

Bids and suppliers

Rheinmetall Landsysteme - KF41 Lynx - GERMANY

Rheinmetall Landsysteme - KF41 Lynx - GERMANY

In-progress

 
Supplier
Equipment Category
Subcategory
System Name
 
Prime Rheinmetall Landsysteme
Manufacturer:Rheinmetall Landsysteme
Equipment Category:Military vehicles
Equipment Category: APCs/IFVs - tracked
System Name:KF41 Lynx
View Entry
Allison Transmission
Manufacturer:Allison Transmission
Equipment Category:Engines
Equipment Category: Military vehicle engines
System Name:TBC
BAE Systems Hägglunds - CV90 - SWEDEN

BAE Systems Hägglunds - CV90 - SWEDEN

Unsuccessful

 
Supplier
Equipment Category
Subcategory
System Name
 
Prime BAE Systems Hägglunds
Manufacturer:BAE Systems Hägglunds
Equipment Category:Military vehicles
Equipment Category: APCs/IFVs - tracked
System Name:CV90
View Entry
Allison Transmission
Manufacturer:Allison Transmission
Equipment Category:Engines
Equipment Category: Military vehicle engines
System Name:TBC
General Dynamics European Land Systems – Steyr - ASCOD CBP IFV - AUSTRIA

General Dynamics European Land Systems – Steyr - ASCOD CBP IFV - AUSTRIA

Unsuccessful

 
Supplier
Equipment Category
Subcategory
System Name
 
Prime General Dynamics European Land Systems – Steyr
Manufacturer:General Dynamics European Land Systems – Steyr
Equipment Category:Military vehicles
Equipment Category: APCs/IFVs - tracked
System Name:ASCOD CBP IFV
View Entry
MTU
Manufacturer:MTU
Equipment Category:Engines
Equipment Category: Military vehicle engines
System Name:MB 873 Ka-501
View Entry
CIO Consorzio Iveco-Oto Melara - None - ITALY

CIO Consorzio Iveco-Oto Melara - None - ITALY

Unsuccessful

 
Supplier
Equipment Category
Subcategory
System Name
 
Prime CIO Consorzio Iveco-Oto Melara
Manufacturer:CIO Consorzio Iveco-Oto Melara
Equipment Category:Military vehicles
Equipment Category: --
System Name:TBC

Additional Information

Programme Background

The Italian Army has identified a requirement for new tracked IFVs to equip its armoured and mechanised brigades. These new vehicles will replace 200 CIO Dardo IFVs and all remaining M113s currently in service with the Italian Army.

Intended to support the army's pivot towards enabling multi-domain operations, the new IFV will be expected to incorporate next-generation capabilities and to be compatible with the Italian military's command and control and battle management system (BMS) C4I systems. It will form one component of the Italian Army's Armoured Infantry Combat System (AICS) system of systems, which will also include a new MBT.

For the AIFV, the Italian Army desires a modular platform that can form the basis for a family of vehicles comprising an IFV, command post, anti-tank vehicle, mortar carrier, engineering vehicle, reconnaissance vehicle, anti-air vehicle, ambulance, munitions transporter and driver training vehicle.

Although technical specifications for the new platform have not been publicly disclosed, the Italian Army is understood to require a platform with a high level of blast and ballistic protection, lethality, growth potential and networking capabilities.

The parameters of the programme have evolved since it was first announced. Whereas the army's 2017 annual report envisaged the procurement of 375 vehicles between 2024 and 2033, the number of vehicles rose to 661 by the time the 2019 annual report was published.

According to reports published in Italian defence media in April 2021, an RfI for the programme was released in December 2020 and the number of vehicles required has increased again to 700.

Under the plans outlined in the Italian MoD's multi-year planning document (DPP) published in August 2021, a total of EUR2.142 billion ($2.511 billion) will be invested into the programme between 2022 and 2035.

Deliveries of the first batch of vehicles will reportedly take place over a ten-year period between 2025 and 2035.

Reports indicate that the programme will have a total cost of EUR6 billion ($7.015 billion). It is unclear whether this additional funding will be allocated before 2035, or if the programme will continue beyond 2035.

In line with the EU's Permanent Structured Cooperation (PESCO) framework, the Italian Army wants to cooperate with European partners in the development and production of its new IFVs. It is hoped that this will harmonise requirements and strengthen its interoperability with its allies, while also laying the groundwork for future cooperation in the procurement of a new MBT.

Several European suppliers are understood to be interested in competing for the Italian Army programme. These include Rheinmetall with its KF41 Lynx, BAE Systems with its CV90, and General Dynamics European Land Systems (GDELS) with its Austro-Spanish Cooperative Development (ASCOD) 42 platform. Italy's own CIO consortium (responsible for manufacturing the Dardo) also released a rendering of a new IFV platform armed with a 30mm cannon in September 2021. The latter may be related to previous reports concerning a Dardo 2 being under development.

During a visit to Italy in January 2021, the CEO of Rheinmetall is reported to have claimed that up to 70% of the value of a future contract could go to the Italian industry if the Rheinmetall platform is selected. This will be achieved through the production of the Lynx in Italy and possibly the use of an Italian engine instead of the Liebherr powerpack. Rheinmetall is understood to have proposed the delivery of the first two prototypes in 2023, followed by the delivery of more than 400 production vehicles.

KNDS Breakdown

On 11 June 2024, KNDS and Leonardo announced in separate press releases on 11 June that they had ended negotiations on forming a partnership for the Italian procurement and domestic production of the Leopard 2A8 main battle tank (MBT) and a new infantry fighting vehicle (IFV).

Whilst not explicitly expected to be the manufacturer for the A2CS program, reports had suggested Italy was seeking a 'double ticket' with a singular wider European OEM for the two programs to work in conjunction with CIO/Leonardo.

According to Italian defence magazine RID, the leading platforms remain the CV90 Mk4 from Swedish manufacturer BAE Systems and the German Rheinmetall Lynx KF41. 

Given the breakdown in negotiations between KNDS and Leonardo regarding the Leopard 2A8, the likely alternative for the Italian MBT programme is the KF51 Panther from Rheinmetall, placing the German company in a good position to offer a Lynx/Panther 'double ticket'.

Rheinmetall MoU

As predicted by Shephard, Rheinmetall appears to have become the expected manufacturer for both the AICS programme and Italy's C1 Ariete replacement programme.

In a 3 July 2024 MoU, Leonardo and Rheinmetall announced that "In particular, the future joint venture - headquartered in Italy - will be the Lead System Integrator, primecontractor and system integrator, in both the Italian programs (MBT and AICS) and will define the roadmap for the participation in the future European Main Ground Combat System (MGCS)."

Whilst not a contract award, the MoU marks a significant step in the programme's future, with the KF41 as the expected platform.

Rheinmetall - Leonardo Joint Venture

In October 2024, Rheinmetall and Leonardo announced their intent to deliver a new infantry fighting vehicle to the Italian army within two years and a new main battle tank within three years. Formign a 50 - 50 Joint Venture known as Leonardo Rheinmetall Military Vehicles (LRMV) headquarter in La Spezia, production is expected to be collocated. 

Included in this was the confirmation of a planned 1050 IFVs crossing 16 variants through to 2040 at a cost of $16.4 billion. 

Forecast Methodology

Quantity Required

The most recent reports concerning the Italian IFV programme indicate that 1050 vehicles are required. 

Programme Value

The Italian MoD's DPP published in August 2021 allocated $2.511 billion to the procurement of a new IFV to be invested between 2021 and 2035. This is understood to include funding for development before a contract is awarded.

The October 2024 Joint Venture announcement included a significant increase in programme value to $16.4 billion.

Unit Cost

Using previous cost estimates based on the base programme value and estimated units alongside costings from the Hungarian KF41 Lynx deal, an average unit cost of $9.4 million has been suggested, with individual variants likely more, and less expensive around this average.

Programme Timeline

The Italian MoD is understood to wish to begin procuring vehicles in 2025 with initial delivery in 2026.

The programme is currently projected to be funded up to 2040

 As with other Italian armoured vehicle programmes, the 1050 vehicles could be procured in multiple batches over a long period.

Programme Years

The funding for each year between 2024 and 2040 has been aligned with the projections in the 2021 DPP and with a modelled extension through to 2040.

Between 2024 and 2026, the Italian MoD expected to invest $106.562 million in the programme. 68% of this is expected to go towards the procurement of the initial vehicles delivered in 2025 and 2026. The remainder has been divided across the initial three years of the programme, as funding is likely to be required to set up a new production line and supply chain.

A further $2.4 billion is expected to be invested in the programme between 2027 and 2035. This has been pro-rated across the programme years in line with the number of vehicles procured each year. 

The number of vehicles procured each year has gradually increased over the first three years of the programme to account for the transition from low-rate to full-rate production.

This forecast has been updated in August 2022 to account for the 2022 DPP, which has shown an approximately 3% decreased budget. Defence Insight considers this change to be a result of currency rate fluctuations.

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Full Details

Related Analysis

Summary

Programme value:
$16.4 billion (Actual)
Units required:
1050 (Actual)
Award year:
2025
Status:
Selected
Type:
Procurement - new
Systems:
KF41 Lynx - In-progress
CV90 - Unsuccessful
ASCOD CBP IFV - Unsuccessful
Unit cost:
$9.4 million (Estimated)
PGO:
95% ?

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