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

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, published by GlobalData, 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.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
  • Market Attractiveness and Emerging Opportunities
    • Current Market Scenario
      • Primary Threat Perception
      • Military Doctrine and Strategy
      • Military Fleet Size
        • Table Canada Ground Forces Strength
        • Table Canadian Navy Strength
        • Table Canada Air Force Strength
      • Procurement Programs
        • Table Canada - Ongoing Development and Procurement Programs
        • Table Canada- Future Procurement Programs
      • Top Procurement Programs by Value (US$ Million) 2018-2023
        • Table Canada - Top 10 Defense Procurement Programs by Value (US$ Million), 2018-2023
      • Social, Political and Economic Environment and Support for Defense Projects
      • Political and Strategic Alliances
    • Defense Market Size Historical and Forecast
      • Canadian defense budget is expected to record a CAGR of 4.72% over the forecast period
        • Table Canadian Defense Expenditure (CAD Billion & US$ Billion), 2014-2023
        • Table Figure 1: Canadian Defense Expenditure (CAD Billion),2014-2023
        • Table Figure 2: Canadian Defense Expenditure (US$ Billion),2014-2023
      • Military modernization and the fight for sovereignty over the arctic region to form base of defense expenditure
      • Canadian defense expenditure as a percentage of GDP is expected to decline over the forecast period
        • Table Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2014-2023
        • Table Figure 3: Canadian GDP Growth and Defense Expenditure as a Percentage of GDP, 2014-2023
    • Analysis of Defense Budget Allocation
      • Share of capital expenditure expected to remain relatively constant over the forecast period
        • Table Canadian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
        • Table Figure 4:Canadian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
      • Capital expenditure is forecasted to record a CAGR of 3.77% over the forecast period
        • Table Canadian Defense Capital Expenditure (CAD Million & US$ Million), 2014-2023
        • Table Figure 5: Canadian Defense Capital Expenditure (CAD Billion), 2014-2023
        • Table Figure 6: Canadian Defense Capital Expenditure (US$ Billion), 2014-2023
      • Per capita defense expenditure is projected to increase over the forecast period
        • Table Canadian Per Capita Defense Expenditure (US$), 2014-2023
        • Table Figure 7: Canadian Per Capita Defense Expenditure (US$), 2014-2023
    • Homeland Security Market Size and Forecast
      • Canadian homeland security budget anticipated to record a CAGR of 7.76% over the forecast period
        • Table Canadian Defense Expenditure for Homeland Security (CAD Billion & US$ Billion), 2014- 2023
        • Table Figure 8: Canadian Homeland Security Budget (CAD Million), 2014-2023
        • Table Figure 9: Canadian Homeland Security Budget (US$ Million),2014-2023
      • Cyber-attacks and terrorism set to drive homeland security expenditure over the forecast period
      • Canada falls under "moderate risk" of terrorism
        • Table Figure 10: Terrorism Heat Map, 2018
      • Canada faces little threat from terrorist organizations
        • Table Terrorism Index, 2018
      • Canada has a terrorism index score of 3.0
        • Table Figure 11: Terrorism Index, 2018
    • Benchmarking with Key Global Markets
      • Canadian defense budget expected to remain low compared to the leading spenders
        • Table Benchmarking with Key Markets - 2014-2018 vs 2019-2023
        • Table Figure 12: Benchmarking with the World's Largest and Top Regional Defense Spenders (US$ Billion), 2014-2018 vs 2019-2023
      • The US and China dominates the global defense market
        • Table Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023
      • Canada allocates a lower share of GDP to defense expenditure than the US
        • Table Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
        • Table Canada - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
      • Corvettes
        • Table Figure 15: Corvettes Market Size (US$ Million), 2018-2023
      • Airborne C4ISR
        • Table Figure 16: Airborne C4ISR Market Size (US$ Million), 2018-2023
      • Multi-mission and Maritime Helicopter
        • Table Figure 17: Multi-mission and Maritime Helicopter Market Size (US$ Million), 2018-2023
  • Defense Procurement Market Dynamics
    • Table Figure 18: Canada - Defense Procurements in Terms of Supplier Relationships, 2018
    • Import Market Dynamics
      • Defense imports are expected to increase over 2019-2023
        • Table Figure 19: Canadian Defense Import Trend (US$ Million), 2013-2017 (TIV Values)
      • The US emerged as the top arms exporter to Canada
        • Table Figure 20: Canadian Defense Imports by Country (%), 2013-2017
      • Aircraft accounted for the majority of military imports
        • Table Figure 21: Canadian Defense Imports by Category (%),2013-2017
    • Export Market Dynamics
      • Defense exports expected to rise over the forecast period
        • Table Figure 22: Canadian Defense Export Trend (US$ Million), 2013-2017 (TIV Values)
      • Saudi Arabia accounted for the majority of Canadian defense exports
        • Table Figure 23: Canadian Defense Exports by Country (%), 2013-2017
      • Engines are the main exported defense products
        • Table Figure 24: Canadian Defense Exports by Category (%), 2013-2017
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 25: Industry Dynamics - Porter's Five Forces Analysis
      • Bargaining Power of Supplier: Medium
      • Bargaining Power of Buyer: High
      • Barrier to Entry: Medium
      • Intensity of Rivalry: Medium to High
      • Threat of Substitution: Low to Medium
  • Market Entry Strategy
    • Market Regulation
      • Offset policy aids Canada's domestic defense industry and balances regional development
        • Table Offset Regulations in Canada
      • FDI in the defense sector is reviewed for threats to national security and effects on the economy
    • Market Entry Route
      • Budgeting Process
        • Table Canada Budget Formation Timetable
      • Acquisition of domestic companies is an effective entry route for foreign defense companies
      • Establishment of subsidiaries is an effective entry route into the Canadian defense market
      • Market entry strategies include joint ventures and licensing agreements
    • Key Challenges
      • Timeline for execution of offsets increases difficulty for foreign companies
      • ITARs conflicting with Canadian human rights laws challenge Canadian defense companies
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Canada - Top Defense Suppliers by Value (US$ Million),2018-2023
      • Table Competitive Landscape of the Canadian Defense Industry
    • Key Public-Sectors Companies
      • CAE - Overview
      • CAE - Major Products and Services
        • Table CAE - Major Products and Services
      • CAE - Recent Announcements and Strategic Initiatives
      • CAE - Alliances
        • Table CAE - Alliances
      • CAE - Recent Contract Wins
        • Table CAE - Recent Contract Wins
      • CAE - Financial Analysis
        • Table Figure 26: CAE - Revenue Trend Analysis (CAD Billion), 2014-2018
        • Table Figure 27: CAE - Operating Profit Trend Analysis (CAD Million), 2014-2018
        • Table Figure 28: CAE - Net Profit Trend Analysis (CAD Million), 2014-2018
      • Pacific Safety Products Inc. - Overview
      • Pacific Safety Products Inc. - Major Products
        • Table Pacific Safety Products Inc. - Major Products
      • Pacific Safety Products Inc. - Recent Announcements and Strategic Initiatives
      • Pacific Safety Products Inc. - Alliances
        • Table Pacific Safety Products Inc. - Alliances
      • Pacific Safety Products Inc. - Recent Contract Wins
        • Table Pacific Safety Products Inc. - Recent Contract Wins
      • Avcorp - Overview
      • Avcorp - Major Products and Services
        • Table Avcorp - Major Products and Services
      • Avcorp - Recent Announcements and Strategic Initiatives
      • Avcorp - Alliances
        • Table Avcorp - Alliances
      • Avcorp - Recent Contract Wins
        • Table Avcorp - Recent Contract Wins
      • Avcorp - Financial Analysis
        • Table Figure 29: Avcorp - Revenue Trend Analysis (CAD Million), 2013-2017
        • Table Figure 30: Avcorp - Operating Profit Trend Analysis (CAD Million), 2013-2017
        • Table Figure 31: Avcorp - Net Profit Trend Analysis (CAD Million), 2013-2017
      • Héroux-Devtek Inc. - Overview
      • Héroux-Devtek Inc. - Major Products and Services
        • Table Héroux-Devtek Inc. - Major Products and Services
      • Héroux-Devtek Inc. - Recent Announcements and Strategic Initiatives
      • Héroux-Devtek Inc. - Alliances
        • Table Héroux-Devtek Inc. - Alliances
      • Héroux-Devtek Inc. - Recent Contract Wins
        • Table Héroux-Devtek Inc. - Recent Contract Wins
      • Magellan Aerospace Corporation - Overview
      • Magellan Aerospace Corporation - Major Products and Services
        • Table Magellan Aerospace Corporation - Major Products and Services
      • Magellan Aerospace Corporation - Recent Announcements and Strategic Initiatives
      • Magellan Aerospace Corporation - Alliances
        • Table Magellan Aerospace Corporation - Alliances
      • Magellan Aerospace Corporation - Recent Contract Wins
        • Table Magellan Aerospace Corporation - Recent Contract Wins
      • Magellan Aerospace Corporation - Financial Analysis
        • Table Figure 32: Magellan Aerospace Corporation - Revenue Trend Analysis (CAD Million), 2013-2017
        • Table Figure 33: Magellan Aerospace Corporation - Operating Profit Trend Analysis (CAD Million), 2013-2017
        • Table Figure 34: Magellan Aerospace Corporation - Net Profit Trend Analysis (CAD Million), 2013-2017
    • Key Private-Sector Companies
      • Bell Helicopter Textron Canada Ltd - Overview
      • Bell Helicopter Textron Canada Ltd - Major Products
        • Table Bell Helicopter Textron Canada Ltd - Major Products
      • Bell Helicopter Textron Canada Ltd - Recent Announcements and Strategic Initiatives
      • Bell Helicopter Textron Canada Ltd - Alliances
        • Table Bell Helicopter Textron Canada Ltd - Alliances
      • Bell Helicopter Textron Canada Ltd - Recent Contract Wins
        • Table Bell Helicopter Textron Canada Ltd - Recent Contract Wins
      • Cascade Aerospace - Overview
      • Cascade Aerospace - Major Products and Services
        • Table Cascade Aerospace - Major Products and Services
      • Cascade Aerospace - Recent Announcements and Strategic Initiatives
      • Cascade Aerospace - Alliances
        • Table Cascade Aerospace - Alliances
      • Cascade Aerospace - Recent Contract Wins
        • Table Cascade Aerospace - Recent Contract Wins
      • General Dynamics Canada - Overview
      • General Dynamics Canada - Major Products
        • Table General Dynamics Canada - Major Products
      • General Dynamics Canada - Recent Announcements and Strategic Initiatives
      • General Dynamics Canada - Alliances
        • Table General Dynamics Canada - Alliances
      • General Dynamics Canada - Recent Contract Wins
        • Table General Dynamics Canada - Recent Contract Wins
      • General Dynamics Land Systems, Canada - Overview
      • General Dynamics Land Systems, Canada - Major Products and Services
        • Table General Dynamics Land Systems, Canada - Major Products and Services
      • General Dynamics Land Systems, Canada - Recent Announcements and Strategic Initiatives
      • General Dynamics Land Systems, Canada - Alliances
        • Table General Dynamics Land Systems, Canada - Alliances
      • General Dynamics Land Systems, Canada - Recent Contract Wins
        • Table General Dynamics Land Systems, Canada - Recent Contract Wins
      • L-3 MAS - Overview
      • L-3 MAS - Major Services
        • Table L-3 MAS - Major Services
      • L-3 MAS - Recent Announcements and Strategic Initiatives
      • L-3 MAS - Alliances
        • Table L-3 MAS - Alliances
      • L-3 MAS - Recent Contract Wins
        • Table L-3 MAS - Recent Contract Wins
      • Rheinmetall Canada Inc. - Overview
      • Rheinmetall Canada Inc. - Major products
        • Table Rheinmetall Canada Inc. - Major Products
      • Rheinmetall Canada Inc. - Recent Announcements and Strategic Initiatives
      • Rheinmetall Canada Inc. - Alliances
        • Table Rheinmetall Canada Inc. - Alliances
      • Rheinmetall Canada Inc. - Recent Contract Wins
        • Table Rheinmetall Canada Inc. - Recent Contract Wins
      • Raytheon Canada Ltd - Overview
      • Raytheon Canada Ltd - Major Products and Services
        • Table Raytheon Canada Ltd - Major Products and Services
      • Raytheon Canada Ltd - Recent Announcements and Strategic Initiatives
      • Raytheon Canada Ltd - Recent Contract Wins
        • Table Raytheon Canada Ltd - Recent Contract Wins
  • Business Environment and Country Risk
    • Economic Performance
      • Gross Domestic per Capita (US$)
        • Table Figure 35: Canadian GDP per Capita (US$), 2015-2025
      • Gross Domestic Product, Current US$ Billion
        • Table Figure 36: Canadian Gross Domestic Product (Current US$ Billion), 2014-2024
      • Exports of Goods and Services
        • Table Figure 37: Canadian Exports of Goods and Services (LCU Billion), 2005-2014
      • Imports of Goods and Services
        • Table Figure 38: Canadian Imports of Goods and Services (LCU Billion), 2005-2014
      • Gross National Disposable Income
        • Table Figure 39: Canadian Gross National Disposable Income (US$ Billion), 2005-2014
      • Local Currency Unit per US$
        • Table Figure 40: Canadian LCU per US$, 2015-2024
      • Market Capitalization of Listed Companies
        • Table Figure 41: Canadian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies as a Percentage of GDP
        • Table Figure 42: Canadian Market Capitalization of Listed Companies as a Percentage of GDP, 2005- 2012
      • Government Cash Surplus/Deficit as a Percentage of GDP
        • Table Figure 43: Canadian Government Cash Surplus/Deficit as a Percentage of GDP,2005-2012
      • Goods Imports as a Percentage of GDP
        • Table Figure 44: Canadian Goods Imports as a Percentage of GDP, 2005-2014
      • Goods Exports as a Percentage of GDP
        • Table Figure 45: Canadian Goods Exports as a Percentage of GDP, 2005-2014
      • Services Imports as a Percentage of GDP
        • Table Figure 46: Canadian Services Imports as a Percentage of GDP, 2005-2014
      • Services Exports as a Percentage of GDP
        • Table Figure 47: Canadian Services Exports as a Percentage of GDP, 2005-2014
      • Net Foreign Direct Investment
        • Table Figure 48: Canadian Net Foreign Direct Investment (Current US$ Billion), 2005-2014
      • Net FDI as a Percentage of GDP
        • Table Figure 49: Canadian Net FDI as a Percentage of GDP, 2005-2014
      • Mining, Manufacturing, Utilities Output
        • Table Figure 50: Canadian Mining, Manufacturing, Utilities Output(US$ Billion), 2005-2014
  • Appendix
    • Disclaimer

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