Future of the Canadian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

  • ID: 4726759
  • Report
  • Region: Canada
  • 134 pages
  • GlobalData
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FEATURED COMPANIES

  • Avcorp
  • CAE
  • Canada
  • Cascade Aerospace
  • General Dynamics Canada
  • Héroux-Devtek Inc.
  • MORE
Future of the Canadian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

"Future of the Canadian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

This report offers detailed analysis of the Canadian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -
  • The Canadian defense industry market size and drivers: detailed analysis of the Canadian defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
  • Porter’s Five Force analysis of the Canadian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities over the next 10 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Canadian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Scope
  • The Canadian defense budget, which values US$15.8 billion in 2018, registered a negative CAGR of 1.53% during 2014-2018.
  • An Economic Action Plan (EAP) was formulated in 2015, to develop key industrial capabilities by investing CAD2.5 million per year to undertake research on Canada’s defense industrial base.
  • In addition, Defence Research and Development Canada (DRDC) spent approximately CAD300 million on research and development (R&D) programs.
  • An increasing number of collaborations between defense companies and research institutes are underway, and the number of these is expected to increase over the forecast period.
  • Over 2019-2023, the defense budget is expected to increase at a CAGR of 4.72% from US$16.6 billion in 2019 to US$19.9 billion in 2023.
  • Over the forecast period, Canadian defense expenditure will be directed towards modernizing the military, as outlined in the Canada First Defense Strategy (CFDS).
  • Additionally, a major part of the budget will be utilized to ensure Canadian sovereignty over the Arctic region, which has become vulnerable to foreign intrusions due to speculation surrounding oil reserves in the area.
  • The country also stands with allies to deter threats to global peace and security by deploying troops on combat missions.
  • The mission to combat ISIS was extended by a year, requiring funding of approximately CAD360 million.
Reasons to Buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Canadian defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Canadian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Avcorp
  • CAE
  • Canada
  • Cascade Aerospace
  • General Dynamics Canada
  • Héroux-Devtek Inc.
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.6. Social, Political and Economic Environment and Support for Defense Projects
3.1.7. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Canadian defense budget is expected to record a CAGR of 4.72% over the forecast period
3.2.2. Military modernization and the fight for sovereignty over the arctic region to form base of defense expenditure
3.2.3. Canadian defense expenditure as a percentage of GDP is expected to decline over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure expected to remain relatively constant over the forecast period
3.3.2. Capital expenditure is forecasted to record a CAGR of 3.77% over the forecast period
3.3.3. Per capita defense expenditure is projected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Canadian homeland security budget anticipated to record a CAGR of 7.76% over the forecast period
3.4.2. Cyber-attacks and terrorism set to drive homeland security expenditure over the forecast period
3.4.3. Canada falls under “moderate risk” of terrorism
3.4.4. Canada faces little threat from terrorist organizations
3.4.5. Canada has a terrorism index score of 3.0
3.5. Benchmarking with Key Global Markets
3.5.1. Canadian defense budget expected to remain low compared to the leading spenders
3.5.2. The US and China dominates the global defense market
3.5.3. Canada allocates a lower share of GDP to defense expenditure than the US
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
3.6.2. Corvettes
3.6.3. Airborne C4ISR
3.6.4. Multi-mission and Maritime Helicopter

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase over 2019-2023
4.1.2. The US emerged as the top arms exporter to Canada
4.1.3. Aircraft accounted for the majority of military imports
4.2. Export Market Dynamics
4.2.1. Defense exports expected to rise over the forecast period
4.2.2. Saudi Arabia accounted for the majority of Canadian defense exports
4.2.3. Engines are the main exported defense products

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Medium
5.1.2. Bargaining Power of Buyer: High
5.1.3. Barrier to Entry: Medium
5.1.4. Intensity of Rivalry: Medium to High
5.1.5. Threat of Substitution: Low to Medium

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids Canada’s domestic defense industry and balances regional development
6.1.2. FDI in the defense sector is reviewed for threats to national security and effects on the economy
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Acquisition of domestic companies is an effective entry route for foreign defense companies
6.2.3. Establishment of subsidiaries is an effective entry route into the Canadian defense market
6.2.4. Market entry strategies include joint ventures and licensing agreements
6.3. Key Challenges
6.3.1. Timeline for execution of offsets increases difficulty for foreign companies
6.3.2. ITARs conflicting with Canadian human rights laws challenge Canadian defense companies

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Public-Sectors Companies
7.2.1. CAE - Overview
7.2.2. CAE - Major Products and Services
7.2.3. CAE - Recent Announcements and Strategic Initiatives
7.2.4. CAE - Alliances
7.2.5. CAE - Recent Contract Wins
7.2.6. CAE - Financial Analysis
7.2.7. Pacific Safety Products Inc. - Overview
7.2.8. Pacific Safety Products Inc. - Major Products
7.2.9. Pacific Safety Products Inc. - Recent Announcements and Strategic Initiatives
7.2.10. Pacific Safety Products Inc. - Alliances
7.2.11. Pacific Safety Products Inc. - Recent Contract Wins
7.2.12. Avcorp - Overview
7.2.13. Avcorp - Major Products and Services
7.2.14. Avcorp - Recent Announcements and Strategic Initiatives
7.2.15. Avcorp - Alliances
7.2.16. Avcorp - Recent Contract Wins
7.2.17. Avcorp - Financial Analysis
7.2.18. Héroux-Devtek Inc. - Overview
7.2.19. Héroux-Devtek Inc. - Major Products and Services
7.2.20. Héroux-Devtek Inc. - Recent Announcements and Strategic Initiatives
7.2.21. Héroux-Devtek Inc. - Alliances
7.2.22. Héroux-Devtek Inc. - Recent Contract Wins
7.2.23. Magellan Aerospace Corporation - Overview
7.2.24. Magellan Aerospace Corporation - Major Products and Services
7.2.25. Magellan Aerospace Corporation - Recent Announcements and Strategic Initiatives
7.2.26. Magellan Aerospace Corporation - Alliances
7.2.27. Magellan Aerospace Corporation - Recent Contract Wins
7.2.28. Magellan Aerospace Corporation - Financial Analysis
7.3. Key Private-Sector Companies
7.3.1. Bell Helicopter Textron Canada Ltd - Overview
7.3.2. Bell Helicopter Textron Canada Ltd - Major Products
7.3.3. Bell Helicopter Textron Canada Ltd - Recent Announcements and Strategic Initiatives
7.3.4. Bell Helicopter Textron Canada Ltd - Alliances
7.3.5. Bell Helicopter Textron Canada Ltd - Recent Contract Wins
7.3.6. Cascade Aerospace - Overview
7.3.7. Cascade Aerospace - Major Products and Services
7.3.8. Cascade Aerospace - Recent Announcements and Strategic Initiatives
7.3.9. Cascade Aerospace - Alliances
7.3.10. Cascade Aerospace - Recent Contract Wins
7.3.11. General Dynamics Canada - Overview
7.3.12. General Dynamics Canada - Major Products
7.3.13. General Dynamics Canada - Recent Announcements and Strategic Initiatives
7.3.14. General Dynamics Canada - Alliances
7.3.15. General Dynamics Canada - Recent Contract Wins
7.3.16. General Dynamics Land Systems, Canada - Overview
7.3.17. General Dynamics Land Systems, Canada - Major Products and Services
7.3.18. General Dynamics Land Systems, Canada - Recent Announcements and Strategic Initiatives
7.3.19. General Dynamics Land Systems, Canada - Alliances
7.3.20. General Dynamics Land Systems, Canada - Recent Contract Wins
7.3.21. L-3 MAS - Overview
7.3.22. L-3 MAS - Major Services
7.3.23. L-3 MAS - Recent Announcements and Strategic Initiatives
7.3.24. L-3 MAS - Alliances
7.3.25. L-3 MAS - Recent Contract Wins
7.3.26. Rheinmetall Canada Inc. - Overview
7.3.27. Rheinmetall Canada Inc. - Major products
7.3.28. Rheinmetall Canada Inc. - Recent Announcements and Strategic Initiatives
7.3.29. Rheinmetall Canada Inc. - Alliances
7.3.30. Rheinmetall Canada Inc. - Recent Contract Wins
7.3.31. Raytheon Canada Ltd - Overview
7.3.32. Raytheon Canada Ltd - Major Products and Services
7.3.33. Raytheon Canada Ltd - Recent Announcements and Strategic Initiatives
7.3.34. Raytheon Canada Ltd - Recent Contract Wins

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. Gross Domestic per Capita (US$)
8.1.2. Gross Domestic Product, Current US$ Billion
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP
8.1.10. Goods Imports as a Percentage of GDP
8.1.11. Goods Exports as a Percentage of GDP
8.1.12. Services Imports as a Percentage of GDP
8.1.13. Services Exports as a Percentage of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net FDI as a Percentage of GDP
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix
9.1. About
9.2. Disclaimer

List of Tables
Table 1: Canada Ground Forces Strength
Table 2:Canadian Navy Strength
Table 3: Canada Air Force Strength
Table 4: Canada - Ongoing Development and Procurement Programs
Table 5: Canada- Future Procurement Programs
Table 6: Canada - Top 10 Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Canadian Defense Expenditure (CAD Billion & US$ Billion), 2014-2023
Table 8: Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2014-2023
Table 9: Canadian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 10: Canadian Defense Capital Expenditure (CAD Million & US$ Million), 2014-2023
Table 11: Canadian Per Capita Defense Expenditure (US$), 2014-2023
Table 12: Canadian Defense Expenditure for Homeland Security (CAD Billion & US$ Billion), 2014-2023
Table 13: Terrorism Index, 2018
Table 14: Benchmarking with Key Markets - 2014-2018 vs 2019-2023
Table 15: Canada - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
Table 16: Offset Regulations in Canada
Table 17: Canada Budget Formation Timetable
Table 18: Canada - Top Defense Suppliers by Value (US$ Million),2018-2023
Table 19: Competitive Landscape of the Canadian Defense Industry
Table 20: CAE - Major Products and Services
Table 21: CAE - Alliances
Table 22: CAE - Recent Contract Wins
Table 23: Pacific Safety Products Inc. - Major Products
Table 24: Pacific Safety Products Inc. - Alliances
Table 25: Pacific Safety Products Inc. - Recent Contract Wins
Table 26: Avcorp - Major Products and Services
Table 27: Avcorp - Alliances
Table 28: Avcorp - Recent Contract Wins
Table 29: Héroux-Devtek Inc. - Major Products and Services
Table 30: Héroux-Devtek Inc. - Alliances
Table 31: Héroux-Devtek Inc. - Recent Contract Wins
Table 32: Magellan Aerospace Corporation - Major Products and Services
Table 33: Magellan Aerospace Corporation - Alliances
Table 34: Magellan Aerospace Corporation - Recent Contract Wins
Table 35: Bell Helicopter Textron Canada Ltd - Major Products
Table 36: Bell Helicopter Textron Canada Ltd - Alliances
Table 37: Bell Helicopter Textron Canada Ltd - Recent Contract Wins
Table 38: Cascade Aerospace - Major Products and Services
Table 39: Cascade Aerospace - Alliances
Table 40: Cascade Aerospace - Recent Contract Wins
Table 41: General Dynamics Canada - Major Products
Table 42: General Dynamics Canada - Alliances
Table 43: General Dynamics Canada - Recent Contract Wins
Table 44: General Dynamics Land Systems, Canada - Major Products and Services
Table 45: General Dynamics Land Systems, Canada - Alliances
Table 46: General Dynamics Land Systems, Canada - Recent Contract Wins
Table 47: L-3 MAS - Major Services
Table 48: L-3 MAS - Alliances
Table 49: L-3 MAS - Recent Contract Wins
Table 50: Rheinmetall Canada Inc. - Major Products
Table 51: Rheinmetall Canada Inc. - Alliances
Table 52: Rheinmetall Canada Inc. - Recent Contract Wins
Table 53: Raytheon Canada Ltd - Major Products and Services
Table 54: Raytheon Canada Ltd - Recent Contract Wins

List of Figures
Figure 1: Canadian Defense Expenditure (CAD Billion),2014-2023
Figure 2: Canadian Defense Expenditure (US$ Billion),2014-2023
Figure 3: Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2014-2023
Figure 4:Canadian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Canadian Defense Capital Expenditure (CAD Billion), 2014-2023
Figure 6: Canadian Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Canadian Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Canadian Homeland Security Budget (CAD Million), 2014-2023
Figure 9: Canadian Homeland Security Budget (US$ Million),2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with the World’s Largest and Top Regional Defense Spenders (US$ Billion), 2014-2018 vs 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Corvettes Market Size (US$ Million), 2018-2023
Figure 16: Airborne C4ISR Market Size (US$ Million), 2018-2023
Figure 17: Multi-mission and Maritime Helicopter Market Size (US$ Million), 2018-2023
Figure 18: Canada - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 19: Canadian Defense Import Trend (US$ Million), 2013-2017 (TIV Values)
Figure 20: Canadian Defense Imports by Country (%), 2013-2017
Figure 21: Canadian Defense Imports by Category (%),2013-2017
Figure 22: Canadian Defense Export Trend (US$ Million), 2013-2017 (TIV Values)
Figure 23: Canadian Defense Exports by Country (%), 2013-2017
Figure 24: Canadian Defense Exports by Category (%), 2013-2017
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
Figure 26: CAE - Revenue Trend Analysis (CAD Billion), 2014-2018
Figure 27: CAE - Operating Profit Trend Analysis (CAD Million), 2014-2018
Figure 28: CAE - Net Profit Trend Analysis (CAD Million), 2014-2018
Figure 29: Avcorp - Revenue Trend Analysis (CAD Million), 2013-2017
Figure 30: Avcorp - Operating Profit Trend Analysis (CAD Million), 2013-2017
Figure 31: Avcorp - Net Profit Trend Analysis (CAD Million), 2013-2017
Figure 32: Magellan Aerospace Corporation - Revenue Trend Analysis (CAD Million), 2013-2017
Figure 33: Magellan Aerospace Corporation - Operating Profit Trend Analysis (CAD Million), 2013-2017
Figure 34: Magellan Aerospace Corporation - Net Profit Trend Analysis (CAD Million), 2013-2017
Figure 35: Canadian GDP per Capita (US$), 2015-2025
Figure 36: Canadian Gross Domestic Product (Current US$ Billion), 2014-2024
Figure 37: Canadian Exports of Goods and Services (LCU Billion), 2005-2014
Figure 38: Canadian Imports of Goods and Services (LCU Billion), 2005-2014
Figure 39: Canadian Gross National Disposable Income (US$ Billion), 2005-2014
Figure 40: Canadian LCU per US$, 2015-2024
Figure 41: Canadian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 42: Canadian Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
Figure 43: Canadian Government Cash Surplus/Deficit as a Percentage of GDP,2005-2012
Figure 44: Canadian Goods Imports as a Percentage of GDP, 2005-2014
Figure 45: Canadian Goods Exports as a Percentage of GDP, 2005-2014
Figure 46: Canadian Services Imports as a Percentage of GDP, 2005-2014
Figure 47: Canadian Services Exports as a Percentage of GDP, 2005-2014
Figure 48: Canadian Net Foreign Direct Investment (Current US$ Billion), 2005-2014
Figure 49: Canadian Net FDI as a Percentage of GDP, 2005-2014
Figure 50: Canadian Mining, Manufacturing, Utilities Output(US$ Billion), 2005-2014
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  • CAE
  • Pacific Safety Products Inc.
  • Avcorp
  • Héroux-Devtek Inc.
  • Magellan Aerospace Corporation
  • Bell Helicopter Textron Canada Ltd
  • Cascade Aerospace
  • General Dynamics Canada
  • General Dynamics Land Systems
  • Canada
  • L-3 MAS
  • Rheinmetall Canada Inc.
  • Raytheon Canada Ltd
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown
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