Defence and security market in the UK

The United Kingdom (UK) is one of the world’s leading defence markets. The sector is supported by sustained defence spending growth, a strong domestic industrial base, and deep integration with allied supply chains.

Key defence priorities include:

  • readiness
  • resilience
  • digitalization
  • rapid capability deployment across all domains

The UK also actively collaborates with trusted allies, creating opportunities for qualified international suppliers.

Industry highlights

2.3% contribution to GDP (including spending and supply chain)

More than £16 billion In annual defence procurement and equipment investment

215,000 jobs across the UK’s defence sector

More than 60 Canadian defence companies active or partnered in the UK market

Third largest defence budget in the North Atlantic Treaty Organization (NATO)

More than £12 billion in annual UK defence exports globally   

Key opportunities for Canadian defence and security companies in the UK

  • Supply‑chain access to major land, air, naval and joint‑force programs 
  • Collaboration on capability upgrades, sustainment and digital defence solutions 
  • Participation in future programs with NATO and Five Eyes alignment

Notable challenges for canadian defence and security companies in the UK

  • Strong preference for sovereign capability and trusted suppliers 
  • Lengthy procurement cycles and complex certification requirements 
  • High competition from established UK and European defence primes

UK’s business landscape

The UK defence sector is driven by long‑term equipment plans covering combat air, naval modernisation, land systems, space and cyber. Flagship programmes include:

  • future combat air
  • shipbuilding
  • integrated air and missile defence
  • digital command and control

Defence Industrial Strategy and increased defence budgets prioritize innovation, industrial resilience and allied collaboration. These priorities position Canada as a natural partner.

Summary

The UK is an attractive market for Canadian defence companies seeking access to large programs and allied supply chains. Given strong political alignment and sustained investment, the UK defence market offers opportunities for long‑term partnerships, niche capabilities and technology collaboration 

Contact us

For more information on the defence sector in the UK, please contact Pierre Kowlessar (pierre.kowlessar@international.gc.ca), Trade Commissioner for aerospace and defence. 

Additional Information

Date published:

Hi! I'm Eva. Select the icon to start a chat with me.