Regarding italian military developement, well neutrality in the first Great War, no Ethiopia and a more limited involvement in the Spanish Civil War mean from one side much more money availabe but also a smaller army, no massive popular mobilization as OTL (even if an enlargement will happen due to the strategic situation and because somekind of mobilization during the war will happen if only for security measure...basically like Switzerland).
More importantly no fascism and this mean, less interservice rivality (Benny loved put the 3 service against each other as a mean to protect his job), less tollerance with the local conglomerate when they can't deliver some good products (there will still be a lot, but less than during fascism and a lot less problem in buying from foreign nations...and this will put firm like Ansaldo and Fiat to be more competitive, at least a little).
I think that with this different political and economic situation, some OTL project that failed here can succeed like the production of the Fiat A.76 engine and so plane like the Fiat G.50ter and the Macchi MC.201 will exist and it's very probable that they will form the overwhelming core of Italian Air Force, with the Biplane Fiat CR.42 butterflyed away as the lesson of the Spanish Civil War has been duly taken*.
In my headcanon during the war small (relatively) lot of more advanced fighter planes like the MC.202 and 205 were produced for the Italian Air Forces but much more for the export market, till the end of the conflict when the planes were quickly changed with the newest model like the MC.207, the Fiat G.56 and the Reggiane Re.2006 (all of that remained unbuilt in OTL). Ironically all this planes have engine derivative of the German DB-600 series as the italians were able to take many weapons captured by the entente and study them so to copy it later (a fact that was not taken well from Berlin at diplomatic level)
As medium bomber the OTL unsuccesfull CANT Z.1018 will be ITTL put on line by the last year of war, meanwhile the CANT Z.1007ter will be the premier bomber, an honor that will divide with the SM.79 III. At least it's very probable that the project of the radar alerting system will goes on so the Folaga system will be operational
The army will be more difficult as it's the stronghold of the savoyards generals and so i don't expect a lot of modernization and the OTL Balbo idea of reduce the size of the army so to have few but very well equipped division will immedeiately shoot down but at the same time also the binary division will be voted down i suspect that motorization will happen, as some level of upgrade of the artillery park, the upgrade of the carcano rifle and the aquisition of the armaguerra mod.39 as infantry weapons. Tanks will be probably be the same type but with better armour and with more easy production, frankly i expect the P.40 to enter in service before the end of the war
Oh wait. That was already addressed to some degree before I think.
You mean this:
IMVHO this is a very probable OOB of Regia Marina at the eve of the second great war, it take in consideration (or at least try) budget and different political system
aircraft carrier: 1 (A)
A - OTL Project by Admiral Bonfiglietti in OTL 1929, 15.000ton, max speed 28/29
as air complement had a naval version of the Fiat G.50, unlike the other ships that have as on board plane the Reggiane Re.2000 catapultabile
Battleships: 8 **
Montecuccoli Class : 4 (modernizated on the same manner of the Count of Cavour and Caio Dulio)
Count of Cavour Class: 2 (Modernizated as OTL)
Caio Dulio Class. 2 (modernizated as OTL)
Heavy Crusier: 7
Venezia Class: 3 (roughly equivalent to the Trento)
Genoa Class: 4 (roughly equivalent to the Zara)
Light Crusier: 12
Alberto da Giussano Class 10
Colleoni Class:2 (B)
B - originally part of the same class and batch of the Alberto da Giussano, they were transformed in specializated Anti Aircraft Crusier in the late 30's
Destroyers: 50/60 of various class
Torpedo Boat: 60/70 of various class
Submarines : 110 of various class
*Even OTL the brass know that the plane was outdatated but between Fiat political clout and the fact that the other were much slower to produce, the Biplane won a big contract, so the CR.32 battles in spain are seen as the swan's song of the biplane ITTL as here the plane is the last of the series
** later during the Great war all the battleship (and the aircraft carrier) were upgraded with the installation of EC3/ter
Gufo radar