A critical economic driver supporting national security, innovation, and prosperity across Canada
In 2024, the sector generated close to $17.3 billion in revenues, contributed $11.1 billion in GDP, and supported 81,800 jobs across the Canadian economy.
The industry supports 81,800 jobs across Canada, including direct employment, supply chain jobs, and jobs supported through associated consumer spending.
Defence and security firms operate across every region of Canada, from small manufacturers to global system integrators.
The sector contributes $11.1 billion to Canada’s GDP through direct industry activity, Canadian suppliers, and associated economic activity.
Small and medium-sized businesses form the backbone of Canada’s defence and security ecosystem.
Exports generate nearly half of industry revenues, with about 68% of sales destined for Canada's Five Eyes partners.
The defence industry invests more than three times as much in R&D compared to the broader manufacturing sector.
STEM roles make up 32% of the workforce, over 2.5× higher than the manufacturing average.
Defence companies operating in Canada source 53% of their supply chain from Canadian-based firms.
Since Statistics Canada began tracking the industry in 2014, Canada’s defence sector has shown steady expansion in areas like unmanned aerial systems, simulation, and shipbuilding.
Between 2022 and 2024, the Canadian defence industry grew across revenues, GDP contribution, jobs, exports, and R&D investment. Revenues increased across air and space systems, land and other defence activities, and marine domains, showing continued strength across the industrial base.
2022-2024 Growth $492M increase in GDP contribution and 3,500 new jobs supported.
The defence and security industry creates jobs and opportunities in every region of Canada.
Canada’s defence and security industry is a high-technology sector with strong research, engineering, and advanced manufacturing capabilities.
In 2024, companies invested $477 million in in-house R&D—67% industry-funded and 23% government-funded—making the sector 3× more R&D-intensive than manufacturing.
Science, Technology, Engineering, and Mathematics (STEM) occupations make up 32% of the workforce, compared to 12% across manufacturing.
More than half (53%) of supply-chain spending stays in Canada, supporting thousands of local suppliers and communities.
Canadian defence companies produce world-class goods, services, and technologies sought worldwide. With deep relationships among Five Eyes allies (U.S., U.K., Australia, New Zealand), Canadian firms are integral partners in allied defence and security capabilities.
Canada’s defence industry works directly with government to deliver capabilities, advance R&D, and strengthen Canada’s industrial base.
Department of National Defence (DND): The Canadian federal government remains a major domestic customer.
Defence Research and Development Canada (DRDC): Collaborative R&D on emerging technologies
Innovation, Science and Economic Development Canada (ISED): Analytics and policy development partner
Innovation for Defence Excellence and Security (IDEaS): Funds innovative solutions to defence challenges
As Canada advances its defence priorities, the domestic industry has an important role to play in delivering capability, supporting sovereign industrial capacity, and strengthening supply chains. Investments in areas such as shipbuilding, NORAD modernization, advanced manufacturing, digital systems, and emerging technologies create opportunities for Canadian firms while supporting national and continental defence.
Canada’s defence and security sector is building diverse, equitable, and inclusive workplaces that reflect the communities it serves.
In 2024, women made up 27% of the Canadian defence industry workforce, compared to 29% across the broader manufacturing sector. Women represented 18% of STEM employees, 25% of production workers, and 38% of corporate functions in the sector.
Through initiatives such as CADSI’s Women in Defence and Security, and through broader industry and government efforts, the sector continues to support greater participation and representation across the defence workforce.
Canada’s defence industrial base spans a wide spectrum of capabilities:
Combat vehicles, ammunition, military training, mission systems, protective equipment, and other defence activities
Aircraft fabrication, MRO, mission systems, simulation systems, unmanned aerial systems, and space-related defence systems
Naval shipbuilding, naval vessel design, naval MRO, naval mission systems, and ship components
Communications, navigation, sensors, software, electronics, simulation, and other information systems
Unmanned systems, space systems, advanced sensors, AI-enabled systems, quantum-related technologies, and secure digital capabilities
Materials, electronics, manufacturing, engineering, testing, training, and maintenance services
Canada’s defence industry has grown steadily over the last decade, with revenues increasing from $9.2 billion in 2014 to $17.3 billion in 2024. As Canada focuses on industrial readiness, allied cooperation, and long-term defence investment, the sector is positioned to support national security while creating skilled jobs and economic value across the country.
The next iteration of the biennial survey will measure 2026 industrial activity, with Statistics Canada’s publication of 2026 data scheduled for 2028.
Access the full Innovation, Science and Economic Development Canada report with detailed analysis and methodology.
Join over 1,300 companies driving innovation, creating jobs, and strengthening national security
