Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

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)

Canada Defense Market Outlook, 2023-2028 ($ Billion)

Buy the Full Report to Gain More Information about the Canada Defense Market Forecast

Download a Free Report Sample

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

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

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 (%)

Canada Defense Market Analysis by Sectors, 2023 (%)

Buy the Full Report for more Sector Insights into the Canada Defense Market

Download a Free Report Sample

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

Canada Defense Market Analysis by Companies

Buy the Full Report for more Company Insights into the Canada Defense Market

Download a Free Report Sample

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


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.

Lockheed Martin Corp
JD Irving
Chantier Davie Canada

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historic And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation

  • 3. Military Doctrine and Security Environment

    • 3.1. Military Doctrine and Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy and Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of Canadian Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness By Defense Sector
    • 5.2. Top Sectors in the Italian Defense Market
    • 5.3. Top Defense Segments By Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. Canadian Surface Combatant (Type-26 Frigate)
    • 6.3. F-35
    • 6.4. Multipurpose Vessel
    • 6.5. Polar Class Icebreaker
    • 6.6. Remotely Piloted Aircraft Systems (RPAS) project

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in Canada
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

Frequently asked questions

Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028 standard reports
Currency USD

Can be used by individual purchaser only


Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028 in real time.

  • Access a live Canada Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.