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Canadian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

  • ID: 4895251
  • Report
  • December 2019
  • Region: Canada
  • 130 pages
  • GlobalData
1h Free Analyst Time

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FEATURED COMPANIES

  • Avcorp
  • CAE
  • Cascade Aerospace
  • General Dynamics Canada
  • Héroux-Devtek Inc.
  • Raytheon Canada Ltd.
  • MORE
Canadian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Canadian defense budget is expected to value US$103.7 billion cumulatively over 2020-2024. The Canadian defense expenditure stands at US$17 billion in 2019 with a CAGR of 3.86% during the historic period. 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, the Defence Research and Development Canada (DRDC) agency 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 the forecast period, the defense budget is expected to increase at a CAGR of 7.43% from US$17.8 billion in 2020 to US$23.8 billion in 2024.The Canadian Government allocated an average of 31.1% of its defense budget to capital expenditure during historic period, which includes the purchase of new equipment and the modernization of existing inventory.

Homeland security expenditure expected to value US$2.39 billion cumulatively over 2020-2024. The Canadian Homeland security stood at US$559.2 million in 2019 and recorded a CAGR of 15.11% over the historic period and is expected to record a CAGR of -3.79% and increase from US$743 million in 2020 to US$636.7 million in 2024.

Canada’s defense imports are expected to increase due to various modernization plans. Canadian defense imports peaked in 2015, due to the receipt of trainer and transport aircraft as well as radar. The majority of imports between 2014 and 2018 consisted of aircraft, sensors, armored vehicles, and missiles. The US is the largest supplier of arms to Canada. The country’s planned procurements of advanced armory are expected to increase imports over the coming years. Canadian defense exports fluctuated, posting a steep increase in 2015, before decreasing significantly in 2016 and 2017, only to recover marginally in 2018.

The report “Canadian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” 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, the report “Canadian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” provides an in-depth analysis of the following -
  • The Canadian defense industry market size and drivers: detailed analysis of the Canadian defense industry during 2020-2024, 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$22.6 billion in 2019, registered a CAGR of 4.90% during 2015-2019. 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 2020-2024, the defense budget is expected to increase at a CAGR of 7.43% from US$23.7 billion in 2020 to US$31.6 billion in 2024.
  • 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
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

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

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.2. Defense Market Size Historical and Forecast
3.3. Analysis of Defense Budget Allocation
3.4. Homeland Security Market Size and Forecast
3.5. Benchmarking with Key Global Markets
3.6. Market Opportunities: Key Trends and Growth Stimulators

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.2. Export Market Dynamics

5. Industry Dynamics
5.1. Five Forces Analysis

6. Market Entry Strategy
6.1. Market Regulation
6.2. Market Entry Route
6.3. Key Challenges

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Public-Sectors Companies
7.3. Key Private-Sector Companies

8. Business Environment and Country Risk
8.1. Economic Performance

9. Appendix
9.1. About the Author
9.2. Disclaimer

List of Tables
Table 1: Canada - Ongoing Development and Procurement Programs
Table 2: Canada- Future Procurement Programs
Table 3: Canada - Top 10 Defense Procurement Programs by Value (US$ Million), 2019-2024
Table 4: Canadian Defense Expenditure (CAD Billion and US$ Billion), 2015-2024
Table 5: Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2015-2024
Table 6: Canadian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 7: Canadian Defense Capital Expenditure (CAD Billion and US$ Billion), 2015-2024
Table 8: Canadian Per Capita Defense Expenditure (US$), 2015-2024
Table 9: Canadian Defense Expenditure for Homeland Security (CAD Billion and US$ Billion), 2015-2024
Table 10: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Table 11: Canada - Top ten Leading Defense Market Categories by Value (US$ Million), 2019-2024
Table 12: Offset Regulations in Canada
Table 13: Canada - Top Defense Suppliers by Value (US$ Million), 2019-2024
Table 14: Competitive Landscape of the Canadian Defense Industry
Table 15: CAE - Major Products and Services
Table 16: CAE - Alliances
Table 17: CAE - Recent Contract Wins
Table 18: Pacific Safety Products Inc. - Major Products
Table 19: Pacific Safety Products Inc. - Alliances
Table 20: Pacific Safety Products Inc. - Recent Contract Wins
Table 21: Avcorp - Major Products and Services
Table 22: Avcorp - Alliances
Table 23: Avcorp - Recent Contract Wins
Table 24: Héroux-Devtek Inc. - Major Products and Services
Table 25: Héroux-Devtek Inc. - Alliances
Table 26: Héroux-Devtek Inc. - Recent Contract Wins
Table 27: Magellan Aerospace Corporation - Major Products and Services
Table 28: Magellan Aerospace Corporation - Alliances
Table 29: Magellan Aerospace Corporation - Recent Contract Wins
Table 30: Bell Helicopter Textron Canada Ltd - Major Products
Table 31: Bell Helicopter Textron Canada Ltd - Alliances
Table 32: Bell Helicopter Textron Canada Ltd - Recent Contract Wins
Table 33: Cascade Aerospace - Major Products and Services
Table 34: Cascade Aerospace - Alliances
Table 35: Cascade Aerospace - Recent Contract Wins
Table 36: General Dynamics Canada - Major Products
Table 37: General Dynamics Canada - Alliances
Table 38: General Dynamics Canada - Recent Contract Wins
Table 39: General Dynamics Land Systems, Canada - Major Products and Services
Table 40: General Dynamics Land Systems, Canada - Alliances
Table 41: General Dynamics Land Systems, Canada - Recent Contract Wins
Table 42: L-3 MAS - Major Services
Table 43: L-3 MAS - Alliances
Table 44: L-3 MAS - Recent Contract Wins
Table 45: Rheinmetall Canada Inc. - Major Products
Table 46: Rheinmetall Canada Inc. - Alliances
Table 47: Rheinmetall Canada Inc. - Recent Contract Wins
Table 48: Raytheon Canada Ltd - Major Products and Services
Table 49: Raytheon Canada Ltd - Recent Contract Wins

List of Figures
Figure 1: Canada Defense Budget: 2020 and 2024
Figure 2: Canada Defense Imports, 2014 and 2018
Figure 3: Canada’s Top Three Prospective Procurements/Developments
Figure 4: Canada National Security Threats
Figure 5: Canada’s Partnering Countries for Defense Cooperation and Military Training
Figure 6: Canadian Defense Expenditure (CAD Billion), 2015-2024
Figure 7: Canadian Defense Expenditure (US$ Billion),2015-2024
Figure 8: Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2015-2024
Figure 9:Canadian Defense Budget Split Between Capital and Revenue Expenditure (%),2015-2024
Figure 10: Canadian Defense Capital Expenditure (CAD Billion), 2015-2024
Figure 11: Canadian Defense Capital Expenditure (US$ Billion), 2015-2024
Figure 12: Canadian Per Capita Defense Expenditure (US$), 2015-2024
Figure 13: Canadian Homeland Security Budget (CAD Million), 2015-2024
Figure 14: Canadian Homeland Security Budget (US$ Million), 2015-2024
Figure 15: Benchmarking with the World’s Largest and Top Regional Defense Spenders (US$ Billion), 2015-2019 vs 2020-2024
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
Figure 18: Corvettes Market Size (US$ Million), 2019-2024
Figure 19: Airborne C4ISR Market Size (US$ Million), 2019-2024
Figure 20: Land-based C4ISR Market Size (US$ Million), 2019-2024
Figure 21: Canada - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 22: Canadian Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
Figure 23: Canadian Defense Imports by Country (%), 2014-2018
Figure 24: Canadian Defense Imports by Category (%), 2014-2018
Figure 25: Canadian Defense Export Trend (US$ Million), 2014-2018 (TIV Values)
Figure 26: Canadian Defense Exports by Country (%), 2014-2018
Figure 27: Canadian Defense Exports by Category (%), 2014-2018
Figure 28: Industry Dynamics - Porter’s Five Forces Analysis
Figure 29: Canada’s Budgeting Process
Figure 30: Canadian GDP per Capita (US$), 2015-2025
Figure 31: Canadian Gross Domestic Product (Current US$ Billion), 2014-2024
Figure 32: Canadian Exports of Goods and Services (LCU Billion), 2005-2014
Figure 33: Canadian Imports of Goods and Services (LCU Billion), 2005-2014
Figure 34: Canadian Gross National Disposable Income (US$ Billion), 2005-2014
Figure 35: Canadian LCU per US$, 2015-2024
Figure 36: Canadian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 37: Canadian Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
Figure 38: Canadian Government Cash Surplus/Deficit as a Percentage of GDP,2005-2012
Figure 39: Canadian Goods Imports as a Percentage of GDP, 2005-2014
Figure 40: Canadian Goods Exports as a Percentage of GDP, 2005-2014
Figure 41: Canadian Services Imports as a Percentage of GDP, 2005-2014
Figure 42: Canadian Services Exports as a Percentage of GDP, 2005-2014
Figure 43: Canadian Net Foreign Direct Investment (Current US$ Billion), 2005-2014
Figure 44: Canadian Net FDI as a Percentage of GDP, 2005-2014
Figure 45: Canadian Mining, Manufacturing, Utilities Output (US$ Billion), 2005-2014
Note: Product cover images may vary from those shown
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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
  • Rheinmetall Canada Inc.
  • Raytheon Canada Ltd.
Note: Product cover images may vary from those shown
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