Defence and security

As the global threat environment continues to evolve and defence investment increases, Canada’s defence industry plays a critical role in the defence and security of Canada and supporting the economy. Canadian companies develop innovative products that are sold around the world and depend on complex international supply chains to bring them to market.

Canada’s Defence Industrial Strategy (DIS) is a whole-of-government initiative to strengthen Canada's defence industrial base through strategic investments in innovation, advanced manufacturing, workforce development, and supply chain resilience. The Strategy supports the growth and international competitiveness of Canadian defence and dual-use firms, including through enhanced export promotion, stronger partnerships with allies, and a target to increase Canada's defence exports by 50%.

Canada’s Defence Industrial Strategy highlights:

• the Government of Canada will procure strategically and prioritize built in Canada solutions for the Canadian Armed Forces
• exports are essential to building a strong and sustainable defence industry
• defence firms will need to look to opportunities abroad as well as at home to support the innovation and expanded production capacity required to meet today’s international defence and security environment

The DIS also designates 10 Sovereign Capabilities as priority investment areas that maximize Canada’s strategic autonomy and resilience while minimizing supply chain vulnerabilities. These priorities outline for industry where future government procurement, investment, and export opportunities will be focused.

The 10 Sovereign Capabilities are:

• aerospace and avionics systems
• ammunition and munitions production
• digital and enabling technologies (e.g., AI, cybersecurity, secure cloud, quantum)
• in-service support and sustainment (land, air, and naval platforms)
• personnel protection and medical countermeasures
• sensors and electronic warfare systems
• space systems and satellite technologies
• specialized manufacturing (e.g., shipbuilding, military vehicles, Arctic-capable systems)
• training and simulation technologies
• autonomous and uncrewed systems (including drones)

Ready to expand globally? We offer in-depth market insights, connections to key contacts, and access to new business opportunities to help you succeed abroad. Tapping into new markets and building international partnerships not only strengthens your business but also contributes to global security efforts. Contact tdo-defence@international.gc.ca for more information.

Canada’s defence and security ecosystem is part of a highly integrated global market. The United States (U.S.) is Canada’s largest trading partner in this sector, accounting for just over 60 percent of Canada’s defence exports. Canada and the U.S. have the most integrated defence supply chain in the world.

Other priority markets for defence and security include:

• European Union Member States
  • Top potential markets include Germany, Poland, France, Italy, Romania, Latvia, and Lithuania
• United Kingdom
• Gulf Cooperation Council members
  • Top potential markets include Saudi Arabia, Qatar, and the United Arab Emirates (UAE)
• Australia
• Japan
• Republic of Korea
• Chile
• Peru