State of Canada's Defence Industry 2024

Revenues

Employment (Number of Jobs)

R&D^{Footnote 20} (2016 vs. 2022)

Exports

Defence Industry

Canadian Suppliers to the Defence Industry

Consumer Spending by Associated Employees

Total GDP Economic Impact

Defence Industry

34,500

36,000

Canadian Suppliers to the Defence Industry

23,500

25,200

Defence Industry and Value Chain

58,000

61,200

Consumer Spending by Associated Employees

19,600

20,000

Total Jobs Economic Impact

77,600

81,200

Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$1,339,505,777

$2,079,143,232

$739,637,455

55.2%

Aircraft Fabrication, Structures and Components

$1,416,086,478

$1,445,924,277

$29,837,799

2.1%

Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$994,181,470

$1,071,151,042

$76,969,572

7.7%

Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$377,610,671

$375,868,525

-$1,742,146

-0.5%

Simulation Systems for Aircraft

$235,430,669

$238,783,900

$3,353,231

1.4%

Unmanned Aerial Systems and Vehicles (UAS/V) and Components

$63,556,985

$168,930,867

$105,373,882

165.8%

Military Systems Deployed in Space, Space Launch Vehicles, Land-based Systems for the Operation, Command and Control of Space Launch Vehicles or Systems Deployed in Space, and Related Components

$70,704,636

$73,943,779

$3,239,143

4.6%

Total Air & Space Systems Revenues

$4,497,076,686

$5,453,745,622

$956,668,936

21.3%

Total Defence Revenues

$12,612,286,611

$14,310,628,198

$1,698,341,587

13.5%

Combat and Other Military Ground Vehicles and Components

$2,131,512,853

$1,975,060,892

-$156,451,961

-7.3%

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$507,845,649

$621,696,087

$113,850,438

22.4%

Ammunition and Other Munitions

$408,365,530

$528,584,986

$120,219,456

29.4%

Other Defence

$636,232,827

$528,186,410

-$108,046,417

-17.0%

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$332,564,053

$406,993,358

$74,429,305

22.4%

Military Training Services

$355,998,765

$365,918,369

$9,919,604

2.8%

Military Personal Protective Equipment, Load Carriage Systems and Operational Clothing

$166,503,552

$198,234,077

$31,730,525

19.1%

Combat and Other Military Ground Vehicles Maintenance, Repair, Overhaul, Modernization and Upgrade Services

$303,021,503

$181,838,574

-$121,182,929

-40.0%

Missiles and Rockets

$126,891,803

$104,774,592

-$22,117,211

-17.4%

Firearms and Other Weapons

$106,350,078

$88,640,495

-$17,709,583

-16.7%

Simulation Systems for Land Vehicles or Other Applications

$27,861,283

$16,228,525

-$11,632,758

-41.8%

Total Land & Other Revenues

$5,103,147,896

$5,016,156,365

-$86,991,531

-1.7%

Total Defence Revenues

$12,612,286,611

$14,310,628,198

$1,698,341,587

13.5%

Naval Vessel Construction, Conversions, Architecture, Engineering and Related Services^{Footnote 25}

$1,331,866,629

$1,776,979,321

$445,112,692

33.4%

Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$775,234,432

$1,070,632,031

$295,397,599

38.1%

Naval Shipborne Mission Systems and Components

$480,265,905

$643,438,602

$163,172,697

34.0%

Naval Ships' Structural Elements, Platform Systems, Parts & Components (Excluding Shipborne Naval Mission Systems)

$415,459,845

$332,715,246

-$82,744,599

-19.9%

Simulation Systems for Naval Vessels

$9,235,218

$16,961,011

$7,725,793

83.7%

Total Marine Revenues

$3,012,062,029

$3,840,726,211

$828,664,182

27.5%

Total Defence Revenues

$12,612,286,611

$14,310,628,198

$1,698,341,587

13.5%

1. Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services
2. Naval Vessel Construction, Conversions, Architecture, Engineering and Related Services^{Footnote 27}
3. Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services
4. Aircraft Fabrication, Structures and Components
5. Other Defence
6. Naval Shipborne Mission Systems and Components
7. Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components
8. Military Training Services
9. Combat and Other Military Ground Vehicles and Components
10. Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

1. Combat and Other Military Ground Vehicles and Components
2. Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components
3. Aircraft Fabrication, Structures and Components
4. Other Defence
5. Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components
6. Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services
7. Naval Shipborne Mission Systems and Components
8. Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components
9. Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components
10. Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services

1. Ammunition and Other Munitions
2. Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services
3. Aircraft Fabrication, Structures and Components
4. Simulation Systems for Aircraft
5. Military Training Services
6. Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services
7. Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components
8. Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components
9. Military Personal Protective Equipment, Load Carriage Systems and Operational Clothing
10. Naval Shipborne Mission Systems and Components

1. Naval Vessel Construction, Conversions, Architecture, Engineering and Related Services^{Footnote 28}
2. Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services
3. Naval Shipborne Mission Systems and Components
4. Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services
5. Other Defence
6. Aircraft Fabrication, Structures and Components
7. Military Training Services
8. Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components
9. Naval Ships' Structural Elements, Platform Systems, Parts & Components (Excluding Shipborne Naval Mission Systems)
10. Combat and Other Military Ground Vehicles and Components

Simulation Systems for Aircraft

$238,783,900

15% < X ≤ 18%

1

Unmanned Aerial Systems and Vehicles (UAS/V) and Components

$168,930,867

12% < X ≤ 15%

2

Simulation Systems for Land Vehicles or Other Applications

$16,228,525

6% < X ≤ 9%

3

Simulation Systems for Naval Vessels

$16,961,011

6% < X ≤ 9%

4

Military Training Services

$365,918,369

6% < X ≤ 9%

5

Military Systems Deployed in Space, Space Launch Vehicles, Land-based Systems for the Operation, Command and Control of Space Launch Vehicles or Systems Deployed in Space, and Related Components

$73,943,779

6% < X ≤ 9%

6

Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$375,868,525

6% < X ≤ 9%

7

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$406,993,358

3% < X ≤ 6%

8

Combat and Other Military Ground Vehicles Maintenance, Repair, Overhaul, Modernization and Upgrade Services^{Footnote 30}

$181,838,574

3% < X ≤ 6%

9

Ammunition and Other Munitions

$528,584,986

3% < X ≤ 6%

10

Combat and Other Military Ground Vehicles and Components^{Footnote 31}

$1,975,060,892

3% < X ≤ 6%

11

Other Defence

$528,186,410

3% < X ≤ 6%

12

Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$1,071,151,042

3% < X ≤ 6%

13

Aircraft Fabrication, Structures and Components

$1,445,924,277

3% < X ≤ 6%

14

Naval Shipborne Mission Systems and Components

$643,438,602

3% < X ≤ 6%

15

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$621,696,087

0% ≤ X ≤ 3%

16

Missiles and Rockets

$104,774,592

0% ≤ X ≤ 3%

17

Naval Ships' Structural Elements, Platform Systems, Parts & Components (Excluding Shipborne Naval Mission Systems)

$332,715,246

0% ≤ X ≤ 3%

18

Firearms and Other Weapons

$88,640,495

0% ≤ X ≤ 3%

19

Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$2,079,143,232

0% ≤ X ≤ 3%

20

Military Personal Protective Equipment, Load Carriage Systems and Operational Clothing

$198,234,077

0% ≤ X ≤ 3%

21

Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$1,070,632,031

0% ≤ X ≤ 3%

22

Naval Vessel Construction, Conversions, Architecture, Engineering and Related Services^{Footnote 32}

$1,776,979,321

0% ≤ X ≤ %

23

United States

$3,204,296,920

$4,431,692,402

$1,227,395,482

38.3%

Middle East^{Footnote 34} and Africa

$1,729,372,701

$864,553,528

-$864,819,173

-50.0%

Europe (excludes UK)

$672,894,201

$750,267,518

$77,373,317

11.5%

Asia and Oceania^{Footnote 35} (excludes AU & NZ)

$454,006,753

$436,801,294

-$17,205,459

-3.8%

United Kingdom (UK)

$216,011,845

$341,528,766

$125,516,921

58.1%

Central America, the Caribbean, Mexico, and South America

$184,818,726

$163,095,058

-$21,723,668

-11.8%

Australia (AU)

$68,312,835

$48,812,468

-$19,500,367

-28.5%

New Zealand (NZ)

$2,965,172

$2,394,966

-$570,206

-19.2%

Total Exports

$6,532,679,153

$7,039,146,000

$506,466,847

7.8%

Defence Goods and Services Categories

2022 Revenues

Exports’ Share of Revenues

Rank

Unmanned Aerial Systems and Vehicles (UAS/V) and Components

$168,930,867

80% < X ≤ 100%

1

Aircraft Fabrication, Structures and Components

$1,445,924,277

60% < X ≤ 80%

2

Military Systems Deployed in Space, Space Launch Vehicles, Land-based Systems for the Operation, Command and Control of Space Launch Vehicles or Systems Deployed in Space, and Related Components

$73,943,779

60% < X ≤ 80%

3

Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$1,071,151,042 

60% < X ≤ 80%

4

Combat Vehicles and Components & Combat Vehicles Maintenance, Repair and Overhaul^{Footnote 36}

$2,156,899,466 

60% < X ≤ 80%

5

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

$406,993,358 

60% < X ≤ 80%

6

Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$375,868,525 

60% < X ≤ 80%

7

Simulation Systems for Aircraft

$238,783,900 

40% < X ≤ 60%

8

Naval Ships' Structural Elements, Platform Systems, Parts & Components (Excluding Shipborne Naval Mission Systems)

$332,715,246

40% < X ≤ 60%

9

Ammunition and Other Munitions

$528,584,986

40% < X ≤ 60%

10

Missiles and Rockets

$104,774,592

40% < X ≤ 60%

11

Primarily Land-Based, Ground Vehicle-Borne, Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$621,696,087

40% < X ≤ 60%

12

Naval Shipborne Mission Systems and Components

$643,438,602

40% < X ≤ 60%

13

Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$2,079,143,232

40% < X ≤ 60%

14

Firearms and Other Weapons

$88,640,495

20% < X ≤ 40%

15

Other Defence

$528,186,410

20% < X ≤ 40%

16

Simulation Systems for Naval Vessels

$16,961,011

20% < X ≤ 40%

17

Military Training Services

$365,918,369

20% < X ≤ 40%

18

Military Personal Protective Equipment, Load Carriage Systems and Operational Clothing

$198,234,077

20% < X ≤ 40%

19

Naval Ship Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$1,070,632,031

0% ≤ X ≤ 20%

20

Naval Vessel Construction, Conversions, Architecture, Engineering and Related Services^{Footnote 37}

$1,776,979,321

0% ≤ X ≤ 20%

21

Simulation Systems for Land Vehicles or Other Applications

$16,228,525

0% ≤ X ≤ 20%

22

Aircraft fabrication, structures, and components

This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to: Military aircraft, and military aircraft structural elements, control surfaces, systems, sub-systems, parts and components of manned military aerial platforms, and complete manned military aerial platforms, intended for use in combat and military transport. This includes things like landing gear (e.g., wheels, shock absorbers and related parts for the retraction and extension of aircraft landing gear, helicopter pontoons); flight control actuators; and propulsion and power systems for military aircraft (e.g., aircraft gas turbine engines, compressors, fuel systems).

Excluded from this category are sales related to military aircraft maintenance, repair and overhaul (MRO) services; aircraft communication systems; navigation systems; avionics; air-borne sensors; missiles, rockets and projectiles made to be fired from aerial platforms; display units; and other electronics for manned military aerial platforms—these are to be reported under separate defence product and service categories as appropriate.

Military aircraft maintenance, repair, overhaul, modernization, or upgrade services
This category includes sales of

• maintenance, repair, and overhaul (MRO) servicescarried out under contract for military aircraft (including the MRO of their systems and subsystems like engines, avionics, etc.), as well as for related MRO training; examples of related activities include sales under contracts for
  • military aircraft repair, maintenance, rebuilding or overhauling on a factory basis (i.e., restoring aircraft to original design specifications)
  • basic servicing, repairing and maintenance of military aircraft
  • MRO-related military aircraft inspection and testing services
  • associated engineering support and material management
• contracts for military aircraft modernization, upgrade, conversion, or modification services (including systems and subsystems like avionics, engines, associated software, etc.).

EXCLUDED from this category are:

• sales from the provision of systems like avionics (e.g., flight control systems, radar, electro-optical, communications, navigation, countermeasures systems), engines or other platform systems and parts
  • to be integrated into military aircraft undergoing MRO, modernization, upgrades, conversion, or modifications
  • to be integrated into new military aircraft.

• Sales of such goods and services should instead be reported as most appropriate under the alternative defence goods and services categories for “Primarily airborne electro-optical, radar, sonar and other sensor and information collection systems; fire control, warning and countermeasures systems, and related components,” “Primarily airborne communications and navigation systems, and other information systems (including processing and dissemination), software, electronics and components” and “Aircraft fabrication, structures and components.”

• sales from the provision of aircraft (re)fuelling services, aircraft cleaning and fumigation services at airports; such sales should not be reported under any of the defence goods and services categories.

Military systems deployed in space, space launch vehicles, land-based systems for the operation, command and control of space launch vehicles or systems deployed in space, and related components
This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services:

• Relating to primarily military systems deployed in space (e.g., satellites, spacecraft, and space robotic systems) and their sub-systems and components; as well as space launch vehicles.
• Related design, engineering and production of earth-based systems used for the operation, Command & Control of military systems deployed in space and space launch vehicles (e.g., ground stations, satellite tracking systems, and launch facilities).

Primarily airborne communications and navigation systems; and other information systems (including processing and dissemination), software, electronics and components
This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to primarily airborne:

• military communications systems, secure cyber/information systems, and other military Information Technologies (including software);
• navigation and guidance systems (e.g., Global Positioning System [GPS] based systems, gyroscopes, accelerometers) and other geomatics related systems and services (e.g., geographic information system (GIS) products and services for military applications, remote sensing services for military applications);
• other technologies for the receipt, exchange/disseminating, processing, synthesizing, analysis, and integration of multiple types of data;
• display technologies, digital control systems and other avionics; Other mission system avionics, computers and electronics;
• other aircraft avionics for military aircraft not elsewhere specified.

Note: sales relating to similar systems, but which are integrated into naval vessels should be reported under the category for “Naval Ship-Borne Mission Systems and Components.”

Primarily airborne electro-optical, radar, sonar, and other sensor / information collection systems; fire control, warning and countermeasures systems, and related components
This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to primarily airborne:

• electro-optical systems (e.g., image intensification night-vision systems, thermal imaging systems, lasers), radars, dipping sonar, other sensors, and fire-control systems used to aid weapons in target acquisition, tracking and engagement;
• warning systems (e.g., technologies that detect enemy radars, enemy laser targeting systems, and approaching threats such as missiles);
• countermeasures (e.g., electronic jamming equipment, smoke screens, flares to counter heat-seeking missiles);
• other related aircraft avionics systems.

Note: sales relating to similar systems, parts, and components but which are integrated into naval vessels should be reported under the category for “Naval Ship-Borne Mission Systems and Components.”

Simulation systems for aircraft
This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to aircraft and operations in the air-domain.

Unmanned aerial systems and vehicles and components
This category includes sales related to production, research, development, design, engineering, testing, and evaluation services relating to: Military unmanned aerial vehicles/systems and drones, and related sub-systems, parts, components, and accessories (including related ground control systems and launchers).

Excluded are sales relating to missiles; or to weapon systems (e.g., guns, missile launchers) and ammunition, munitions, and missiles carried on/delivered by unmanned aerial systems or vehicles. Such sales should be reported under either the category for “Firearms and other weapons” or under the category for “Missiles & rockets.”

Ammunition and other munitions

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services, and disposal activities such as relating to:

• conventional ammunition in small/medium/large calibers, artillery and mortar rounds, bombs, grenades, torpedoes, mines, other munitions, and related precision manufacturing;
• related propellants and explosives like explosive plastics, gels, liquids, and powders; and,
• nuclear, biological, and chemical warheads.

Excluded are sales of missiles, rockets and other related parts and components which should be reported under the category for “Missiles and Rockets.”

Combat and other military ground vehicles and components
This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to: Land-based vehicles specifically designed for military use in combat and to transport and protect soldiers and materials, and the basic platform systems, sub-systems and components of such vehicles (e.g., vehicle structures, electrical systems, armour, engines, transmission systems, heating/cooling systems, engineering).

Excluded are sales such as of:

• Combat vehicle-based weapons systems like guns and missile launchers as such sales should be reported under the “Firearms and other weapons” category.
• Sales relating to associated projectiles like tank gun rounds or missiles should be reported separately under the “Ammunition and other munitions” or “Missiles and rockets” categories as appropriate.
• Combat vehicle communication systems, electronics, sensors, fire-control and navigation systems sales should instead be reported under either the appropriate categories for: “[Primarily land-based, ground vehicle-borne, man-portable or non-platform specific] electro-optical, radar, sonar and other sensor/information collection systems; fire control, warning and countermeasures systems; and related components” and “[Primarily land-based, ground vehicle-borne, man-portable or non-platform specific] communications and navigation systems; and other information systems (including processing and dissemination), software, electronics, and components”.
• Relating to maintenance, Repair, overhaul (MRO) and/or training services relating to combat vehicles should also be reported separately in the category for: “Combat and other military ground vehicles maintenance, repair, overhaul, modernization and upgrade services.”

EXCLUDED ENTIRELY from the survey are any sales relating to consumer, commercial or industrial vehicles sold to militaries.

Combat and other military ground vehicles maintenance, repair, overhaul, modernization, and upgrade services
This category includes sales of

• maintenance, repair, and overhaul (MRO) servicescarried out under contract for combat and other military ground vehicles, as well as for MRO-related training; examples of related activities include sales under contracts for
  • military vehicle repair, maintenance, or overhaul to original design specifications
  • basic servicing, repairing and maintenance of military vehicles
  • MRO-related military vehicle inspection and testing services
  • associated engineering support, material management
• contracts for vehicle modernization, upgrade, conversion, or modification services.

EXCLUDED from this category are sales relating to

• associated projectiles like tank gun rounds or missiles, sales of which should be reported separately under the “Ammunition and other munitions” or “Missiles and rockets” categories as most appropriate;
• the sale of items such as vehicle-mounted guns or missile launchers, which should be reported separately under the “Firearms and other weapons” goods and services sales category;
• vehicle-based mission systems like communication systems, sensors, fire-control and navigation systems, countermeasures, and other electronics and software, which should be reported under the appropriate categories for the following “[Primarily land-based, ground vehicle-borne, man-portable or non-platform specific] electro-optical, radar, sonar and other sensor and information collection systems; fire control, warning and countermeasures systems; and related components” and “[Primarily land-based, ground vehicle-borne, man-portable or non-platform specific] communications and navigation systems; and other information systems (including processing and dissemination), software, electronics and components.”

EXCLUDE ENTIRELY from the survey any sales relating to consumer, commercial or industrial vehicles that happen to be sold to militaries.

Firearms and other weapons
This category includes military sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to technologies aggressively used to gain or defend a tactical advantage over an adversary; to attack, defend and protect assets and personnel. This includes lethal and non-lethal kinetic and non-kinetic weapon systems like:

• light/medium/heavy firearms;
• vehicle-based or mobile weapons like tank guns, howitzers, mortars, and missile launchers;
• acoustic, laser, and other electromagnetic based weapon systems.

Military personal protective equipment, load carriage systems and operational clothing
This category includes sales related to production, research, development, design, engineering, testing and evaluation services; as well as to the maintenance and repair of soldiers’ personal protective equipment (PPE) including:

• ballistic/blast protection and related military body armor, helmets, eyewear, and related accessories; as well as soldier flame/thermal protection;
• chemical, biological, radiological & nuclear (CBRN) military protective suits, as well as military respirators and associated;
• soldier load carriage systems (includes exoskeletons and other personal equipment designed specifically to help soldiers carry their respective fighting, battle, and sustainment loads);
• other personal military items designed for use by individual soldiers to aid in their concealment from enemy detection;
• other operational military clothing and footwear.

Excluded from this category are sales relating to:

• Ceremonial uniforms, as well as commercial/civil market items purchased for soldiers. Nor are these to be reported as defence goods and services sales under any of the other defence sales categories.
• Sensors/electronics designed for military use in the detection and identification of CBRN and explosives related threats. Sales of goods and services relating to such sensors/electronics should instead be reported under the most appropriate category relating to: “Electro-optical, radar, sonar and other sensor / information collection systems; fire control, warning and countermeasures systems, and related components.”

Military training services
This category includes sales related to the provision and development (by operations in Canada) of:

• Live military training services to military personnel such as in relation to combat training exercises, including military airborne training services and any similar land or maritime training services; military marksmen and sniper training, etc.
• Relevant activities are those that occur in real/natural physical environments mirroring expected operational environments/ conditions to the extent possible, using actual platforms and/or other systems and equipment.
• Training services involving individuals/trainees operating simulated platforms and/or other warfighting systems/equipment in simulated/synthetic environments mirroring expected operational environments/scenarios.
• Such activities may relate to training of specific military personnel in isolation, or to training of multiple individuals. For example, multiple individuals simultaneously operating separate but networked military aircraft simulators.
• Training and simulation-based services involving simulated actors/ forces operating simulated systems/equipment in simulated/ synthetic environments and scenarios, based at least in part on inputs entered into simulations prior to the running of simulations (e.g., war-gaming models).

Excluded are sales:

• Of actual simulation system hardware and associated software—which should instead be reported under the three categories relating to “Simulation Systems” as appropriate.
• For training services related to the maintenance, repair, and overhaul (MRO) of military platforms and systems—as these should be reported under appropriate MRO categories under the survey.

Missiles and Rockets
This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to military missiles and rockets, including advanced missiles used by anti-ballistic missile (ABM) systems.

Excluded here are sales relating to:

• space launch vehicles;
• munitions/sub-munitions and other types of warheads carried on or delivered by missiles and rockets.

Those are to be reported under either the categories for “Ammunition and Other Munitions” or for military space systems as appropriate.

Primarily land-based, ground vehicle-borne, man-portable, or non-platform specific communications and navigation systems; and other Information systems (including processing and dissemination), software, electronics and components
This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to land-based, ground vehicle-borne, man-portable, or non-platform specific:

• military communications systems, secure cyber/information systems, and other military Information Technologies (including software);
• navigation and guidance systems (e.g., Global Positioning System [GPS] based systems, gyroscopes, accelerometers) and other geomatics related systems and services (e.g., geographic information system (GIS) products and services for military applications, remote sensing services for military applications);
• other technologies for the receipt, exchange/disseminating, processing, synthesizing, analysis, and integration of multiple types of data;
• display technologies and digital control systems;
• other defence computer and electronics related products not elsewhere specified.

Note: sales relating to similar systems, but which are integrated into naval vessels should be reported under the category for “Naval Ship-Borne Mission Systems and Components.”

Primarily land-based ground vehicle borne, man-portable or non-platform specific electro-optical, radar, sonar, and other sensor/information collection systems; fire control, warning, and countermeasures systems, and related components
This category includes sales related to production as well as research, development, design, engineering, testing, and evaluation services relating to primarily land-based, ground vehicle-borne, man-portable, or non-platform specific:

• electro-optical systems (e.g., image intensification night-vision systems, thermal imaging systems, lasers), radars, sonar, other sensors, and fire-control systems used to aid weapons in target acquisition, tracking and engagement;
• warning systems (e.g., technologies that detect enemy radars, enemy laser targeting systems, and approaching threats such as missiles), and countermeasures (e.g., electronic jamming equipment, smoke screens, flares to counter heat-seeking missiles).

Note: sales relating to similar systems, parts, and components but which are integrated into naval vessels should be reported under the category for “Naval Ship-Borne Mission Systems and Components.”

Simulation systems for land vehicles or other applications

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to naval vessels and operations in the maritime-domain.

All other defence (specify)

This category includes sales that could not otherwise be captured under other specified defence goods and services categories, and which are earned from designing, engineering, testing, evaluating, producing, providing, maintaining, upgrading, modernizing or performing research and development for systems and services specifically designed or adapted for (and generally restricted to) use by militaries to conduct operations, and that perform military functions or missions; and related subsystems, components or parts limited in use or specific tosuch military systems or services and the performance of military specific functions. To be in-scope, the industrial activities of businesses must also involveactual production and provision of such goods and services by their employees located in Canada.

EXCLUDED are sales of:

• goods and services that were produced, rendered, or provided by facilities and employees located outside of Canada,and then just delivered or sold “as-is” by a business located in Canada;
• goods sold by wholesaler, distributor, or retailer operations located in Canada that were not actually produced by those businesses in Canada (but that were produced by other businesses located in Canada or abroad);
• cleaning services provided to military facilities, construction and maintenance services for basic housing and infrastructure (e.g., roads, sewers) at military bases, human resources staffing services, basic commercial transportation services to military clients (e.g., commercial trucking firms transporting goods to a base) and raw materials (e.g., chemical feedstocks, metals).

Naval ship maintenance, repair, overhaul, modernization, or upgrade services

This category includes sales of:

• maintenance, repair, and overhaul (MRO) servicescarried out under contract for naval surface vessels, and subsurface vessels and submarines, as well as for MRO-related training; examples of related activities include sales under contracts for:
  • naval vessel repair, maintenance, or overhaul to original design specifications
  • basic servicing, repairing and maintenance of naval vessels
  • MRO-related naval vessel inspection and testing services
  • associated engineering support, material management
• contracts for naval vessel modernization, upgrade, conversion, or modification services.

EXCLUDED from this category are:

• Sales of systems, like naval ship-borne mission and platform systems
  • produced forintegration into vessels undergoing MRO, modernization, upgrades, conversion or modification
  • produced for integration into new naval vessels during their construction.

Sales of such goods and services should instead be reported as most appropriate under the goods and services categories for “Naval ship-borne mission systems and components” and “Naval ships structural elements, platform systems, parts and components.”

Naval ship’s structural elements, platform systems, parts & components (excluding shipborne naval mission systems)
This category includes sales for production as well as research, development, design, engineering, testing and evaluation services relating to: Platform systems, subsystems, structural parts and components intended for either existing manned naval surface ships/submarines or for use during the building of new manned naval vessels (e.g., vessels that were specifically designed or modified for use by militaries in combat or the transportation of military goods and personnel). For example, this would include sales of bulkheads, ship propulsion plant and electrical power systems, ship propellers and propeller shafts, steering mechanisms, machinery control systems, ballistic protection materials, fire extinguishing systems, climate control/ventilation and water treatment systems, plumbing, deck machinery, living spaces, and hull compartments and other hull sections, naval ships’ helicopter handling systems, etc.

Excluded from this category are sales:

• Related to shipborne naval mission systems/naval vessels’ combat systems like command, control, and communications systems; radars, sonar, electro-optical systems, naval countermeasures, navigation systems, displays and other sensors and electronics, naval guns, and missile launchers. Those are to be reported under the category for “Naval ship-borne mission systems and components.”
• Related to maintenance, repair and overhaul services provided for manned naval surface ships/submarines. Those sales should instead be reported under the separate category for: “Naval ship maintenance, repair and overhaul.”
• By shipyards relating to their design or construction/assembly and delivery of newly built naval ships (including submarines); and/or naval conversions. These should instead be reported under the separate category for “New naval vessels constructed by shipyards, and naval conversions.”

Naval ship-borne mission systems and components
This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to such systems as: Naval vessel mission/combat systems: command, control, and communications; radar, sonar, electro-optical and other sensors, navigation systems, displays, other Information Technologies (including Software) and electronics, countermeasures; guns, and missile or torpedo launchers.

Excluded from this category are sales related to the actual missiles, torpedoes and other munitions or projectiles launched or fired from/by naval vessels’ weapon systems, as well as associated warheads. Such sales are to be reported under either the category for “Missiles and Rockets” or the category for “Ammunition and Other Munitions” as appropriate.

Naval vessel architecture, engineering, certification, and related professional services
This category includes sales under contracts specifically for naval architecture and engineering services relating to naval surface ships or naval submarines operated by navies (i.e., vessels specifically designed for and restricted to use by militaries in combat, their transportation of military goods and personnel, or to otherwise perform military and naval specific functions). Relevant services include:

• assessing design requirements and proposals, and determining basic vessel characteristics
• modelling related to hydrodynamics and vessel signature management (e.g., radar cross section; thermal, acoustic, and electromagnetic emissions)
• providing overall ship hull and superstructure design, and determining platform system requirements (e.g., requirements to be met by power and propulsion; steering; heating, ventilation, and air conditioning systems)
• specifying the layout of the interior space of vessels, and the physical layout of platform systems and other systems and machinery within vessels
• providing associated drawings, schematics, and job specifications
• inspecting machinery and equipment, hulls, and superstructures (including damage surveys)
• developing and conducting the testing and evaluation of machinery and equipment, and of the operational performance of platforms
• ensuring compliance with marine vessel standards and regulations, and certification of systems and vessels
• deriving vessel construction cost estimates and establishing contract specifications and vessel production schedules.

Exclude from this category

• sales under contracts specifically for the actual provision or integration of businesses’ specific ship-borne mission systems, platform systems and structural elements, as well as of simulation systems for naval vessels; such sales should instead be reported under other naval goods and services categories that are in accordance with their respective definitions
• sales under contracts specifically for the provision and management of maintenance, repair, and overhaul services, or of the actual modernization or upgrade of naval vessels and their systems.

New naval vessels constructed by shipyards, and naval conversions
Only to be reported here are sales by shipyards in relation to their construction/assembly work (and/or related research, development, design, and engineering work) conducted by their operations in Canada in relation to the:

• Assembly of new manned naval surface ships or submarines at a business’ shipyards in Canada (i.e., vessels that were specifically designed for use by militaries in combat, the transportation of military goods and personnel, or to otherwise perform military/naval specific functions).
• Conversion of existing vessels that were originally designed and built as commercial/civil vessels into naval vessels for future use by militaries in combat, the transportation of military goods and personnel, or to otherwise perform military/naval specific functions.

Excluded from this category are sales:

• Of goods and services related to shipborne naval mission systems such as naval radars, battle management command and control systems, mine detection and naval countermeasures, naval guns, and missile launchers etc. Those are to be reported under a preceding category for: “Naval ship-borne mission systems and components.”
• Related to maintenance, repair, and overhaul services (MRO) for manned naval surface ships and submarines. Those sales should instead be reported under a separate category for: “Naval ship maintenance, repair and overhaul.”
• Of goods and services relating to structural elements, other platform systems, subsystems, parts, and components of naval vessels not elsewhere reported. Such sales should instead be reported under the separate preceding category for: “Naval ships’ structural elements, platform systems, parts, & components (excludes shipborne naval mission systems).”

Further exclusions or guidance: if the business is not a shipyard in Canada but was nonetheless responsible for, (and paid by a government/military for progress on) the eventual delivery of naval vessels being assembled by a shipyard in Canada that is not its subsidiary, or otherwise owned by the business or by a common parent company—then, such a business should not report sales figures which include the amount of associated sales made by the shipyard(s). For such businesses, they should only report any relevant sales relating to work done by their respective operations’ employees in Canada, which exclude the sales value of work the businesses contracted/subcontracted or passed through to shipyards in Canada. This is necessary to prevent potential large scale double counting of the actual value of naval vessels being delivered by shipyards in Canada, and hence overestimation of the actual volume of associated industrial activity at shipyards in Canada.

Simulation systems for naval vessels
This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to naval vessels and operations in the maritime-domain.

1. Key Industrial Indicators, % Change, 2020–2022
   1. Statistics Canada’s Canadian Defence, Aerospace, Marine and Cybersecurity Industries Survey (2020 and 2022), 2022 survey released in 2024
2. Economic Impact
   1. ISED economic model estimates based on Statistics Canada’s 2019 Input-Output (I/O) multipliers, 2024
   2. See 1(a)
3. Key Industrial Indicators by Firm Size
   1. Statistics Canada’s Canadian Defence, Aerospace, Marine and Cybersecurity Industries Survey (2022), released in 2024
4. Key Industrial Indicators by Domain
   1. See 3(a)
5. Regional Breakdown
   1. See 3(a)
6. Gender Breakdown by Occupation
   1. ISED custom tabulations based on Statistics Canada's Labour Force Survey (2022), 2024
   2. See 3(a)
7. Skills & STEM
   1. See 6(a)
   2. See 3(a)
8. Innovation
   1. ISED custom tabulations based on Statistics Canada’s Table 27-10-0333-01, 27-10-0344-01, 36-10-0222-01, 36-10-0223-01, and 36-10-0402-01 (all released in 2023), 2024
   2. See 2(a)
   3. See 3(a)

9. Global Supply Chains
   1. See 3(a)
10. Exports
    1. See 3(a)
11. Annex 2
    1. Statistics Canada’s Canadian Defence, Aerospace, Marine and Cybersecurity Industries Survey (2014, 2016 and 2022), 2022 survey released in 2024
12. Annex 3
    1. See 2(a)
    2. See 1(a)
13. Annex 4
    1. See 1(a)
14. Annex 5
    1. See 3(a)
15. Annex 6
    1. See 3(a)
16. Annex 7
    1. See 1(a)
17. Annex 8
    1. See 3(a)
18. Annex 9
    1. See 3(a)