Spain's defence industry is strong and diverse, with capabilities in land, naval, aerospace, cybersecurity, and space systems. Although mainly led by a few large contractors, small and medium-sized enterprises (SMEs) make up most of the firms and play vital roles in innovation and subcontracting. Spain is expanding its international defence presence through North Atlantic Treaty Organization (NATO) and European Union (EU) involvement and aims to increase its defence budget to 2% of GDP by 2030. European cooperation initiatives and rising international sales present opportunities for foreign suppliers and partners.
Defence market in Spain
Key opportunities for Canadian defence companies in Spain
- Entry into tier-1 or tier-2 supply chains for major exporters
- R&D partnerships through European Defence Fund projects and NATO-aligned innovation platforms
- Support services and technologies for Spain’s expanding military participation in NATO and United Nations (UN) operations
Notable challenges for Canadian defence companies in Spain
- Market concentration among a small group of firms controlling most procurement and exports
- Competitive EU landscape with preference for internal capabilities and strategic autonomy
- Spanish SMEs involved in R&D or production may be fragmented and not strongly connected
Industry highlights
1.5% to 2% target for share of Spain’s GDP allocated to defence by 2030
CAD 40.5 billion in projected defence spending by 2030
85% of Spanish defence companies are SMEs or subcontractors
More than 520 Spanish defence and security companies listed by Ministry of Defence.
79% of Spanish defence sales are from international cooperation and exports
12th in defence overall
Spain business landscape
Spain’s defence sector includes over 500 firms, with 1.5% controlling 75% of the market. The industry is shaped by strong public-private collaboration, especially within large-scale armament projects. Spain actively supports EU defence integration through initiatives such as the Permanent Structured Cooperation (PESCO), the Preparatory Action on Defence Research (PADR), and the European Defence Fund. Canada-Spain cooperation is shown through Airbus contracts and participation in joint R&D projects.
Key players are investing in naval modernisation, aerospace technology, and cyber defence systems. New public investments and Spain’s growing commitment to NATO operations are driving procurement opportunities, including maintenance, logistics, and support services. Strategic exhibitions like FEINDEF provide an entry point for international firms.
Summary
Spain offers Canadian defense companies access to a growing, export-focused industry with global connections and alignment with NATO and the EU. Defence budgets are increasing, EU-funded R&D is advancing, and multinational projects continue to develop. With these advancements, Spain’s defence market offers opportunities for niche technologies, supply chain collaborations, and joint innovation.
Contact us
Contact espana@international.gc.ca for more information on the defence sector in Spain.