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Market Research Report

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

Published by GlobalData Product code 919420
Published Content info 130 Pages
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Canadian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Published: December 11, 2019 Content info: 130 Pages
Description

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
Table of Contents
Product Code: GDDF0608MR

Table of Contents

LIST OF FIGURES

LIST OF TABLES

1. Introduction

  • 1.1. What is this Report About?
  • 1.2. Definitions
  • 1.3. Summary Methodology
  • 1.4. About GlobalData

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 GlobalData
  • 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: Heroux-Devtek Inc. - Major Products and Services
  • Table 25: Heroux-Devtek Inc. - Alliances
  • Table 26: Heroux-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
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