Canada Defence Logistics Market

Canada Defence Logistics Market Insights Forecasts to 2035

• The Canada Defence Logistics Market Size was estimated at USD 8,140.36 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 5.15% from 2025 to 2035
• The Canada Defence Logistics Market Size is Expected to Reach USD 14,136.77 Million by 2035

According to a research report published by decision advisor and Consulting, the Canada Defence Logistics Market is anticipated to reach USD 14,136.77 million by 2035, growing at a CAGR of 5.15% from 2025 to 2035. The sudden changes are opening up new ways for transportation partners, logistics companies, and technology integrators to contribute strategically to defence operations. In the upcoming years, the market is anticipated to grow steadily due to the complexity of defence missions and the growing significance of supply continuity. 

Market Overview

The Canadian defence logistics market refers to the industry focused on the ecosystem of logistics planning, execution, and management that supports Canada's military and defence operations. It guarantees the timely and effective delivery of the supplies, machinery, workers, and services required for operational efficacy and readiness. They are including with preparing, transporting, preserving, and maintaining personnel, supplies, and equipment are all part of the defence logistics market, which is a vital component of military preparedness and operational success. Security logistics, in contrast to commercial logistics, work in challenging conditions where supply routes may be contested and speed and resilience are just as crucial as cost effectiveness. The transportation of weapons, fuel, spare parts, medical supplies, technical maintenance, and forward base support is all covered by the scope of work. They are placing more emphasis on supply chain digitisation, distributed logistics, and quick deployment; these efforts are aided by real-time asset tracking, additive manufacturing, and predictive maintenance.

A $1.1 billion deal to provide the Canadian Army with cutting-edge logistics vehicles has been given to General Dynamics Land Systems–Canada and Marshall Canada. In the course of the Logistics Vehicle Modernisation (LVM) project, outdated military trucks from the late 1980s and early 1990s will be replaced.

The government's commitment to updating its military infrastructure is demonstrated by this contract, which is among the biggest defence logistics purchases in Canadian history. It also emphasises how crucial industry alliances are to providing cutting-edge capabilities and guaranteeing long-term viability.

Report Coverage

This research report categorises the market for the Canada defence logistics market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada defence logistics market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada defence logistics market.

Driving Factors

The market for Canadian defence logistics is primarily driven by the growing defence modernisation programs that aim to improve logistics infrastructure and boost rapid deployment capabilities. The growing defence spending and the requirement for robust, flexible supply chains that can support multi-domain military operations are both prompted by rising geopolitical tensions on a regional and worldwide scale. The market growth is driving by the adoption of cutting-edge technologies like digital supply chain management, robotics, artificial intelligence, predictive maintenance, and unmanned resupply systems, which enhance operational readiness and cost effectiveness. Innovation and competitiveness are promoted in the logistics industry by government initiatives that assist small and medium-sized businesses (SMEs) in commercialising Canadian defence technologies.

The Defence Investment Agency (DIA) was established by the Canadian government, under the leadership of Prime Minister Mark Carney, to restructure its defence procurement procedure. It sounds as though you are speculating or imagining a future Canadian government initiative with a different leader.

The mission of the Defence Investment Agency is to “rebuild, rearm, and reinvest in the Canadian Armed Forces faster.”

Restraining Factors

Canada’s defence logistics operations deal with several exacerbated issues, such as complex supply chains that must coordinate multiple suppliers and ensure timely delivery across vast regions, as well as geopolitical tension, and cyberattacks pose a serious threat to the country’s defence segment.

Market Segmentation

The Canada defence logistics market share is classified into commodity and transport modes.

• The armament segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period.

The Canada defence logistics market is differentiated by commodity into armament, technical support & maintenance, medical aid, and others. Among these, the armament segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period. This segment growth is driven by its particular infrastructure and handling, along with frequently big, heavy, and delicate-sized items that need to be handled carefully during storage, transportation, and maintenance in order to maintain operational readiness. The segment’s significant market share can be attributed to the intricacy of managing armaments supply chains, which calls for proficiency in logistics planning, coordination, and execution. The primary concern is the constant requirement for military hardware upgrades to improve capabilities and preparedness in response to changing geopolitical tensions and security threats on a worldwide scale, which boosts the segment growth.

• The roadways segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period.

The Canada defence logistics market is divided by transport mode into roadways, waterways, airways, and railways. Among these, the roadways segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period. Road transportation provides more accessibility and flexibility. Roadways, as opposed to other forms of transportation, offer the capacity to travel to a variety of locations, including isolated or challenging-to-reach places. This adaptability is essential for military operations, which frequently call for the quick and sometimes impromptu transfer of people, supplies, and equipment to various locations.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Canada defence logistics market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• CAE Inc
• General Dynamics Land Systems
• General Dynamics Mission Systems
• Calian Group Ltd
• IMP Aerospace & Defence
• PAL Aerospace  St. John’s,
• Babcock Canada
• ADGA Group
• Marshall Canada
• Seaspan Shipyards
• Others

Recent Developments:

• In June 2024, General Dynamics Land Systems-Canada and its consortium announced the Logistics Vehicle Modernisation (LVM) contract, a flagship project that aims to supply the Canadian Armed Forces with more than 1,500 new light and heavy trucks and related equipment like trailers and armoured protection kits. Further, to guarantee production capabilities, efforts are being made to mature the supply chain with local suppliers.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. decision advisor has segmented the Canada Defence Logistics Market based on the below-mentioned segments:

Canada Defence Logistics Market, By Commodity

• Armament
• Technical Support & Maintenance
• Medical Aid
• Others

Canada Defence Logistics Market, By Transport Mode

• Roadways
• Waterways
• Airways
• Railways

FAQ

1. What is the size of the Canadian Defence Logistics Market in 2024?

• The market size was an estimated USD 8,140.36 million in 2024.

2. What is the forecasted growth rate for the market from 2025 to 2035?

• The market is expected to grow at a CAGR of approximately 5.15% during this period.

3. What is the projected market size by 2035?

• The market size is anticipated to reach USD 14,136.77 million by 2035.

4. What segments classify the Canadian Defence Logistics Market?

• By commodity: Armament, Technical Support & Maintenance, Medical Aid, Others.
• By transport mode: Roadways, Waterways, Airways, Railways.

5. Which commodity segment dominated the market in 2024?

• The armament segment was the largest revenue generator in 2024.

6. Which transport mode dominated the market in 2024?

• Roadways were the dominant mode of transport.

7. What are the main driving factors for market growth?

• Growing defence modernisation programs and infrastructure improvements, rising geopolitical tensions, adoption of advanced technologies (digital supply chain, AI, robotics), and government initiatives supporting SMEs and defence tech commercialisation.

8. What challenges exist for the market?

• Complex supply chains, geopolitical tensions, cyber threats, and logistical coordination across vast and difficult terrains.

9. What are some recent developments in the market?

• A $1.1 billion Logistics Vehicle Modernisation contract awarded to General Dynamics Land Systems-Canada for over 1,500 new trucks and support equipment.

10. Who are the key market players in Canada?

• CAE Inc., General Dynamics Land Systems, General Dynamics Mission Systems, Calian Group Ltd, IMP Aerospace & Defence, PAL Aerospace, Babcock Canada, ADGA Group, Marshall Canada, Seaspan Shipyards.