Aerospace and Defence
Your best place
to land
Canada is a global leader in aerospace and defence, ranking fourth among the world’s aerospace producers. The sector exported nearly $26 billion in 2024 alone.
With deep integration into global supply chains, it’s a strategic launchpad for companies advancing aviation, space and defence technologies.
Global companies with bold ambitions benefit from a highly specialized talent pool of 225,000 workers and a powerful R&D ecosystem, with $1.2 billion invested in 2024. Whether you’re developing next-generation aircraft, satellite systems or defence platforms, you’ll find everything your company needs to expand, scale up and soar.
Find out why Canada is a top aerospace and defence destination.
Canada’s aerospace and defence advantages
Your launchpad to global aerospace and defence markets
Canada’s aerospace and defence sector is built for global scale. With over 75% of manufacturing revenues driven by exports, Canada doesn’t just meet global standards – it helps set them.
What’s more, over 50% of those exports are supply chain driven, showing full integration into the global industry. It means less risk and more reward for your investment.
The sector has a stable, innovation-driven environment. Investors benefit from robust intellectual property protections and Canada’s world-renowned aviation certification system. It all adds up to a place where you can scale with confidence.
Growing opportunities in defence
Canada is transforming its defence sector, creating new opportunities for growth. With a clear mandate to rebuild and modernize its military infrastructure, the government is actively seeking global partners to support advanced technologies, R&D and manufacturing.
The new Defence Investment Agency streamlines procurement and accelerates collaboration, making it easier for global companies with bold ambitions to partner on high-impact defence projects that align with national priorities and global security objectives.
Global industry leaders investing in Canada
Major global companies with operations in Canada include:
General Dynamics Mission Systems develops tactical communication systems, undersea warfare technologies, plus air, space and cyber solutions at four locations across Canada. Founded in 1948, this major defence contractor has more than 1,200 employees in Canada.
Marshall Group opened the doors in 2023 to its 82,000-square-foot production facility in Moncton, New Brunswick, manufacturing products for air, land and maritime defence.
Pratt & Whitney develops next-gen engines that power aircraft and helicopter fleets worldwide. The company has operated in Canada since 1928 and has 17,000 customers worldwide. It’s part of a consortium developing next-gen sustainable aviation fuels in Québec.
Safran first established its Canadian manufacturing operations more than 75 years ago. With 1,750 employees at six sites, the company produces landing gear and other components, along with critical defence systems. Safran’s Toronto facility is developing next-gen landing gear for military aircraft.
Canada investment highlight
Airbus expands operations in Canada
Airbus Helicopters opened a new integrated distribution centre in Ontario’s Niagara region in 2025. This investment will sustain over 300 jobs and speed up timelines for critical helicopter components.
Airbus manufactures commercial aircraft, helicopters, defence solutions and space technologies at 10 sites across Canada.
“The expansion of our footprint in Ontario underscores the strategic importance of Canada to Airbus’ global operations. This new integrated distribution centre represents a significant investment and a clear demonstration of our enduring commitment to innovation, local talent development, and Canadian leadership in aerospace.”
Regional advantages, national strengths
Canada’s aerospace and defence industry benefits from production hubs and expertise that span the country.
Québec is home to the world’s third-largest aerospace hub. It’s designed for global companies with bold ambitions that want to work within a research and collaboration ecosystem focused on sustainably transforming the aerospace sector.
Ontario is a central hub for aerospace production and home to 35% of the nation’s maintenance, repair and overhaul workforce. Sixteen Ontario universities offer engineering programs to feed the strong talent pipeline in the sector.
Global companies benefit from other regional advantages across Canada. In the West, Manitoba hosts the country’s largest composite manufacturing centre. British Columbia features approximately 200 aerospace and defence companies.
On the East Coast, Nova Scotia has the highest concentration of defence spending and military assets in Canada. Irving Shipbuilding is constructing Canada’s next fleet of combat vessels in Halifax at North America’s largest under-cover shipbuilding facility. The $84 billion contract is the largest single defence procurement in Canadian history.
Programs, incentives and tax credits for investors
Canada offers programs, incentives and tax credits to lower your costs and maximize your success:
Strategic Response Fund (SRF) supports large-scale aerospace projects with investments ranging from $15 million to $200+ million.
Scientific Research and Experimental Development tax incentives: Support R&D activities in Canada.
Industrial and Technological Benefits Policy: Helps companies with bold ambitions connect with major aerospace firms that do business in Canada.
Why choose Canada
Steady influx of STEM talent driving innovation and excellence
Globally recognized universities and research institutions
Strong intellectual property protections
Lowest marginal effective tax rate on new business investment in the G7
Explore Canada’s advanced manufacturing sector
Let’s work together
At Invest in Canada, we are dedicated to your company’s success. Our team is your trusted guide to investing in Canada. We get to know your business, offer insights and information and connect you with the right people and places to support your decision.