Defence market in Norway

The Norwegian defence industry is well-established and provides solutions for larger systems of material suppliers, exporting around 80-90% of its production. Norwegian companies exported defence equipment worth NOK 16.2 billion in 2024 (over CAD 2 billion). The country has niche expertise, especially in areas that overlap with maritime and space industries, such as:

  • missile technology
  • underwater systems
  • autonomous platforms
  • command and control systems

Along with Canada, Norway is a founding nation of NATO and is also an arctic nation. This makes arctic defence a natural joint interest.

Norway’s estimated defence spending for 2025 was 3.3% of GDP (including Ukraine support), exceeding the NATO spending target. The country also has plans to increase their defense spending share to 5%. Norway’s actions reinforce regional cooperation following the signing of the European Union (EU)-Norway Security and Defence Partnership in 2024. Norway is qualified to participate in the Security Action for Europe (SAFE) joint procurement and loan programme, in which they will be treated the same as EU nations.

Norway’s 2024 long-term defence plan plots approximately USD 150 billion in spending from 2025 to 2036. In 2025, Norway launched and published its first-ever National Security Strategy, which establishes a framework for national security efforts with three priorities: 

  1. Rapidly strengthening Norwegian defence capability
  2. Increasing the resilience of Norwegian society
  3. Strengthening economic security

Major companies in the Norwegian defence sector include:

  • Kongberg Defence & Aerospace
  • Nammo
  • Andøya Space
  • international companies such as Rheinmetall Nordics

Key opportunities for Canadian defence companies in Norway

  • Supply chain: Like Canada, Norway’s defence industry is dominated by supply chain companies. For most Canadian companies, the key to success is securing a place in the global supply chains of the major defence contractors that usually win the big contracts.
  • Sub-contracting: There may be opportunities for Canadian companies to secure sub-contracts or collaborate on projects when Norwegian firms win large tenders in Norway or elsewhere in Europe. These opportunities are more likely if the Canadian company has a solid track record or offers a unique value proposition, such as specialized technology or a distinctive market pitch.
  • Companies: Many of the companies in Norway have Canadian connections and experience.
  • MOU: Canada and Norway are likeminded allies in defence and security, with a 2023 MOU on Enhancement of Bilateral Defence Co-Operation.

Industry highlights

Founding member of the North Atlantic Treaty Organization (NATO)  

CAD 150 billion in estimated defence spending from 2025 to 2036 

3.3% of GDP is expected to be spent on defence in 2025

80 to 90% of Norwegian defence sector is exported

Sub-contracts are key in securing opportunities 

C-EFTA — Canadian businesses benefit from the Canada and Norway free trade agreement 

Notable challenges for Canadian defence companies in Norway

  • Tenders: While many tenders are listed publicly on Norway’s procurement portal (DOFFIN), defence and security tenders may be issued to pre-qualified suppliers due to national interests. 
  • Non-EU: Although it is not part of the EU, Norway has gained exceptions to much EU legislation through their European Economic Area (EEA) status. This could promote further collaboration with countries within those agreements. 
  • Strong competition: Canada faces significant competition from key players like the United States and European countries, especially from Germany, the United Kingdom (UK) and in the Nordics Recent investment decisions will also lead to offset obligations with countries other than Canada.

Norway’s business landscape

Canada and Norway enjoy close commercial relations, with bilateral trade benefits from the Canada-EFTA Free Trade Agreement (C-EFTA), a goods-only trade agreement that entered into force in 2009. In 2024, bilateral merchandise trade was approximately CAD 3.1 billion. Norway is also a member of the EEA and part of the Schengen area.

Contact

For more information about defence and security in Norway, contact Trade Commissioner, Roy Kristiansen at roy.kristiansen@international.gc.ca.

Additional Information

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