Future of the Canadian Defense Industry

Market Attractiveness, Competitive Landscape, and Forecasts to 2020

Published Pages Publisher Report code
Nov 2015 162 Strategic Defense Intelligence ASDR-230636
Future of the Canadian Defense Industry

The Canadian defense budget, which values US$15.0 billion in 2015, registered a CAGR of -8.58% between 2011 and 2015. In 2015 an Economic Action Plan (EAP) was formulated and it proposes to enhance the key industrial capabilities by investing CAD2.5 million per year to undertake research on Canada’s defense industrial base. Also, Defence Research and Development Canada (DRDC) spend around CAD300 million on Research and Development programs. An increasing number of collaborations between defense companies and research institutes are underway and are expected to further increase over the forecast period The country’s overall budget constraints restricted the allocation of funds towards the defense sector. The contraction in military expenditure is expected to continue until 2016; after which the budget is projected to increase owing to modernization initiatives. Over 2016-2020, the defense budget is expected to increase at a CAGR of 2.64% from US$13.9 billion in 2016 to US$15.5 billion in 2020

Key Findings

  • Canadian defense expenditure recorded a CAGR of -8.58% between 2011 and 2015, and values US$15.0 billion in 2015
  • The country’s total defense expenditure during the forecast period is expected to be US$72.7 billion
  • The average share of capital expenditure is expected to be 17.8% over the forecast period, compared to an average share of 17.6% during 2011-2015
  • Over the forecast period, the country’s budget for homeland security is expected to be US$3.6 billion cumulatively
  • The key areas of investment are expected to be aircraft, helicopter, naval vessels, and surveillance equipment

Strategic Defense Intelligence’s - Canadian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2020 report offers a detailed analysis with market size forecasts for 2016-2020. The factors that influence demand, key market trends, and challenges faced by industry participants are also covered.

In particular, it provides an in-depth analysis of the following:

  • Defense industry market size from 2016 -2020, including highlights of the demand drivers and growth stimulators. A snapshot of the country’s expenditure and modernization patterns are provided
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to the army, navy, and air force. The key challenges faced by defense market participants within the country are also detailed
  • Porter’s five forces analysis: study the market characteristics by determining the bargaining power of suppliers, buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and export dynamics: review the prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: identify the top five defense investment opportunities from 2015 to 2025
  • Competitive landscape and strategic insights: including an overview of leading players, key alliances, strategic initiatives, and a brief financial analysis

Reasons To Buy

  • Identify and track the global defense market and make regional comparisons to effectively target new revenue streams
  • Understand the importance of being led by the defense ministries in the military procurement market and define your strategies with insight on what your customers really want by analyzing recent orders, technical specifications and the country’s expected investment pattern during 2016-2020
  • Make correct business decisions based on a detailed analysis of the industry from 2016-2020 which includes the total competitive landscape of the sector with detailed profiles of the top domestic and foreign defense manufacturers along with information about their products, alliances, recent contract wins and financial analysis
  • Determine prospective investment areas by gaining an in-depth understanding of the industry in terms of market opportunities
  • Channelize resources by identifying various military requirements that are expected to generate revenues across different sectors during 2016-2020

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