OTTAWA, May 21, 2026 – Canada’s defence sector grew steadily across all key industrial indicators in the aftermath of the global pandemic, new data shows, and is well positioned to help protect Canada’s sovereignty and strengthen its strategic autonomy at a time of global disruption and change.

The Canadian Association of Defence and Security Industries (CADSI), in partnership with Innovation, Science and Economic Development Canada (ISED) and Statistics Canada, today released the latest edition of the State of Canada's Defence Industry Report, based on 2024 year-end data. 

The report found that between 2022 and 2024, the sector saw increased revenues, employment, GDP contribution, R&D spending, and export sales. This growth predates Canada’s significant increase in defence spending in 2025 and the release of the country’s first Defence Industrial Strategy in early 2026.

• “At a time of growing global uncertainty and profound change, a strong and resilient defence industrial base is essential to securing Canada’s sovereignty, supporting our allies and strengthening our economy. The 2026 report shows that Canada’s defence industry is driving technological advancement and economic prosperity across the country, creating high-quality jobs for Canadians and enhancing our sovereign capabilities. Our government is building on this momentum through Canada’s new Defence Industrial Strategy, ensuring our defence industry remains competitive, resilient and ready to meet the challenges of tomorrow,” said the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
• “Canada’s defence industry is a cornerstone of our national strength, driving economic growth, reinforcing sovereignty and equipping the Canadian Armed Forces with the capabilities they need to protect Canadians at home and abroad. This year’s report highlights the sector’s growing potential as we build a more secure and self-reliant industry ready to meet an increasingly complex global environment,” said the Honourable David J. McGuinty, Minister of National Defence
• “Modern defence procurement requires modern evidence. This report is an important tool for continuing to improve how Canada understands, measures and leverages the capabilities of our domestic defence industry,” said the Honourable Stephen Fuhr, Secretary of State for Defence Procurement. “Its insights will support better-informed investments, strengthen industrial capacity and help position Canada to deliver the capabilities needed by the Canadian Armed Forces in a timely manner.”

The defence industrial base continues to be dominated by small and medium-sized businesses, which represent over 90% of defence firms across Canada. It is highly innovative, rich in STEM employment, export-intensive, and increasingly self-reliant. Notably, in 2024, over half of the industry’s supply chain was sourced from Canadian-based suppliers.

• “These numbers give us a baseline and underscore the tremendous inherent potential of our sector – including in R&D and dual-use technology,” said Christyn Cianfarani, President and CEO of CADSI. “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.”

This report is produced every two years and is unique among OECD and NATO countries. It is led by Innovation, Science and Economic Development Canada (ISED) and the Canadian Association of Defence and Security Industries (CADSI) using customized data tabulations developed by Statistics Canada.

Key Takeaways

Since Statistics Canada began collecting data on the defence industry in 2014, the sector’s overall revenue has increased by 87% and employment has risen by 30%.

In 2024, the Canadian defence industry:

• generated close to $17.3 billion in revenues
• contributed 81,800 jobs to the Canadian economy
• was over 2.5x more STEM-intensive and over 3x more R&D-intensive than the broader manufacturing sector
• had close to 55% of its supply chain expenditures with Canadian suppliers
• exported close to $8 billion in goods and services, of which 70% was to Canada’s Five Eyes allies
• had small- and medium-sized businesses (SMBs) that represented over 90% of firms

For more information

CADSI - [email protected]

Innovation, Science and Economic Development Canada - [email protected]