Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028
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Canada Defense Market Report Overview
The Canada defense budget is $20.6 billion in 2023 and is expected to grow at a CAGR of more than 2% from 2024 to 2028. The increase is generally consistent with the growth seen in the historic 2019-2023 period. As a Western nation and member of NATO, the primary drivers of Canada’s defense spending are factors such as growing concern over the resurgence of Russia on the international stage and its February 2022 invasion of Ukraine in particular.
Canada Defense Market Outlook, 2023-2028 ($ Billion)
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The Canada defense market research report provides the market size forecast and the projected growth rate for the next five years. It also covers industry analysis including the key market drivers, emerging technology trends, segments, and major challenges faced by market participants. It offers insights regarding military strategies as well as key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
Market Size (2023) | $20.6 billion |
CAGR (2024-2028) | >2% |
Forecast Period | 2024-2028 |
Historical Period | 2019-2023 |
Key Sectors | · Military Fixed-Wing Aircraft
· Naval Vessels and Surface Combatants · Tactical Communications Systems · Missiles and Missile Defense Systems · Military Unmanned Aerial Vehicles · Military Radar · Underwater Warfare Systems |
Leading Companies | · Irving Shipbuilding Inc
· BAE Systems · Lockheed Martin · Vancouver Shipyards · Seaspan Shipyards · Airbus Defence and Space |
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Canada Defense Market Drivers
Security threats are one of the key factors driving the market. As a NATO member, Canada is invested in European security issues and has taken up strong opposition to the Russian invasion of Ukraine in 2022. Thus, Canada is currently undergoing an extensive program of upgrading its capabilities through procuring new platforms and upgrading existing systems.
Canada Military Doctrines and Defense Strategies
Canada’s military consists of three service branches: the Canadian Army, Royal Canadian Air Force, and Royal Canadian Navy. These armed forces are an entity separate and distinct from the Department of National Defense (DND), which is the government department responsible for policy and administration. There is a Joint Operations Command element, as well as an ‘Information Management Group’ with responsibilities for electronic and cyber warfare.
There is a wide-ranged ongoing effort across all branches of the military to update and replace existing platforms and capabilities, as well as re-acquiring new ones – such as ground-based air defense for army formations – which have been neglected in recent years. The Royal Canadian Air Force (RCAF) is being upgraded with new tanker aircraft, an ongoing search for a replacement for the CH148 Cyclone transport helicopter, and a replacement of its combat aircraft fleet with F-35 fighters. NORAD, the joint US-Canadian aerospace warning and defense system, will have its sensor stations in the north of the country upgraded also. Various smaller-scale projects have also been promised, such as a new standard-issue rifle, and potentially acquiring Canada’s first attack helicopter.
Canada Defense Market Segmentation by Sectors
Naval vessels and surface combatants will be the largest sector within the Canadian defense market in 2023.
The key sectors in the Canada defense market are naval vessels and surface combatants, tactical communications systems, military fixed-wing, missiles and missile defense systems, military unmanned aerial vehicles, military radar, and underwater warfare systems, among others.
The most attractive sectors in Canada’s defense market are naval vessels and surface combatants, military fixed-wing, and military satellites. Focus on naval vessels and surface combatants shows the continued primacy of the sea domain to Canada’s military and strategic posture – both in the Arctic region and in both the Pacific and Atlantic oceans.
Canada Defense Market Analysis by Sectors, 2023 (%)
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Canada Defense Market - Competitive Landscape
Type-26 Frigate will replace the Iroquois and Halifax-class warships with up to 15 new ships.
Some of the leading defense companies operating in Canada are –
- Irving Shipbuilding Inc
- BAE Systems
- Lockheed Martin
- Vancouver Shipyards
- Seaspan Shipyards
- Airbus Defence and Space
Type-26 will be the sole new class of major surface combatant for the Navy, with all-around anti-air, anti-submarine, and anti-shipping capabilities. One sub-variant is intended to have additional wide-area air defense capabilities with the facilities to act as a task force flagship.
Canada Defense Market Analysis by Companies
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Segments Covered in the Report
Canada Defense Market Sectors Outlook (Value, $ Billion, 2019-2028)
- Naval Vessels and Surface Combatants
- Tactical Communications Systems
- Military Fixed-Wing Aircraft
- Missiles and Missile Defense Systems
- Military Unmanned Aerial Vehicles
- Military Radar
- Underwater Warfare Systems
Scope
The report provides:
- Detailed analysis of Canada’s defense market with market size forecasts covering the next five years. The report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
- Canada defense budget: detailed analysis of the Canada 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
- Regulation: the procurement policy and process is explained. This is coupled with an analysis of Canada’s military doctrine and strategy to provide a comprehensive overview of the military procurement regulation in Canada.
- Security Environment: political alliances and perceived security threats to Canada are examined to explain trends in spending and modernization.
- Competitive landscape and strategic insights: analysis of the competitive landscape of Canada’s defense industry.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the French defense market over the next five years.
- Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the French market and identify the opportunities offered.
- Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
- Identify the major threats that are driving the Canada defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
- Channel resources by focusing on the ongoing programs that are being undertaken by the Canada government.
- Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.
Table of Contents
Frequently asked questions
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What is the Canada defense market size in 2023?
The defense market size in Canada is $20.6 billion in 2023.
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What is the Canada defense market growth rate?
The defense market in Canada is expected to achieve a CAGR of more than 2% during 2024-2028.
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Which is the leading sector in the Canada defense market in 2023?
Naval vessels and surface combatants is the leading sector in the Canada defense market in 2023.
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Who are the key companies operating in the Canada defense market?
Some of the leading defense companies operating in Canada are Irving Shipbuilding Inc, BAE Systems, Lockheed Martin, Vancouver Shipyards, Seaspan Shipyards, and Airbus Defence and Space.
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