Canada’s defence and security sector is a core part of our economy and national security. Over 500 Canadian companies employ tens of thousands of skilled workers and deliver advanced technologies that generate billions in annual economic activity.
*ISED State of Canada’s Defence Industry Report (Spring 2026)
Canada’s defence industry blends innovation and tradition, connecting companies across every region and technology field.
Canada’s defence industry connects companies across every region and a wide range of industrial capabilities. It includes established defence manufacturers, aerospace and marine firms, land systems companies, mission systems providers, and organizations working in software, sensors, simulation, unmanned systems, and space-related defence technologies. This mix of capabilities supports Canada’s defence priorities while helping Canadian firms compete in international markets.
The sector fuels national prosperity through new jobs, rising exports, and advanced capabilities.
signalling higher output and expanded industrial capacity
Direct employment grew from 26,857 jobs in 2014 to 37,732 jobs in 2024.
reflecting stronger integration into global supply chains and greater international demand
Beyond direct employment and revenue generation, Canada’s defence sector creates significant multiplier effects throughout the broader economy - supporting suppliers, service providers, and communities across the country while advancing sovereign capabilities in critical technology areas.
Since Statistics Canada began tracking defence industry data in 2014, the sector has demonstrated consistent growth across all key metrics.
Launch of the first comprehensive Government of Canada survey on defence industry capabilities, conducted by Statistics Canada in partnership with Innovation, Science and Economic Development Canada (ISED) and CADSI.
Release of the State of Canada’s Defence Industry Report, 2014 (joint ISED–CADSI publication). Provided the first official benchmark of Canada’s defence industrial base.
Survey methodology refined in preparation for the next data cycle. Stakeholder consultations and question updates led by ISED and CADSI.
Statistics Canada’s biennial survey captures defence industry activity during a period marked by global disruption and changing security priorities.
ISED and CADSI initiate a new round of stakeholder engagement and survey administration.
State of Canada’s Defence Industry Report (Spring 2024) released jointly by ISED and CADSI.
Publication of the State of Canada’s Defence Industry Report- Spring 2026, based on 2024 data.Scheduled release by Statistics Canada and ISED, with CADSI as partner.
The next iteration of the biennial survey will measure 2026 industrial activity, with Statistics Canada's publication of 2026 data scheduled for 2028.
Canada's defence industry relies heavily on exports to support business growth at home and fund the R&D that will produce the next generation of homegrown products and technologies.
68%% of defence industry exports are to Canada's Five Eyes allies
The government has set ambitious industrial targets for the next ten years and is walking the walk when it comes to policies, programs, and procurement reforms to support those goals. The organic growth we’ve seen over the past decade is hopefully just a taste of what’s to come once all the public service machinery is in alignment.- Christyn Cianfarani, President & CEO, CADSI
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Access the complete State of Canada's Defence Industry report from Innovation, Science and Economic Development Canada
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