Canada is entering its largest period of defence investment in generations.
Core defence spending is projected to rise from approximately $64 billion in 2025 to $160 billion by 2035. Meeting the full NATO target of 5% of GDP could push Canada’s annual defence and security spending to at approximately $228 billion by 2035.
Altogether, more than $1 trillion could be spent over the next decade. That creates an enormous opportunity for Canadian business.
Defence investment could grow domestic firms, create skilled jobs, strengthen supply chains and give Canada greater control over critical technologies. It could also flow largely to foreign suppliers if Canadian businesses lack the capacity and opportunity to participate.
The Business Data Lab’s latest report, Deepening Our Defence, examines where Canadian businesses can compete and what needs to happen to turn higher defence spending into lasting economic and industrial strength.
