Tendances Canada defence strategy: 2024-2025 opportunities for Quebec SMEs

Between the war in Ukraine, rising geopolitical tensions and the modernization of NORAD, Canada is accelerating its defense investments. For Quebec SMEs, these changes are not just a macroeconomic issue: they represent a new pool of contracts, innovation subsidies and high value-added industrial partnerships. By 2023, Canada’s defense industry was already generating nearly $12.6 billion in GDP and supporting some 78,000 jobs across the country, making it one of the most R&D-intensive sectors of the Canadian economy(canada.ca). With the launch in 2026 of Canada’s first Defence Industrial Strategy, which targets over $180 billion in procurement opportunities over 10 years(pm.gc.ca), prospects are expanding further for innovative companies, including in cybersecurity, AI, digital systems and aerospace. This article provides an overview of the Canada defence strategy 2024-2025 trends and concrete ways in which Quebec SMEs can take advantage of them, with a focus on digital, AI and the innovation ecosystem.

1. A major strategic shift in Canadian defence policy

In April 2024, the federal government presented its updated defense policy, “Our North, Strong and Free”, accompanied by new investments of $8.1 billion over five years and $73 billion over twenty years(canada.ca). The roadmap emphasizes several key priorities: NORAD modernization, Arctic protection, cyber resilience, information superiority and accelerated technological innovation. At the same time, the message is clear: the bulk of the economic benefits must accrue to Canadian companies.

In 2024-2025, the government confirms this direction by putting forward a vision ofdefence industrial autonomy. The new Defence Industrial Strategy, launched in February 2026, positions Canadian industry to capture approximately $180 billion in defence procurement opportunities and $290 billion in related investments over the next decade, with an expected economic benefit of $125 billion by 2035(pm.gc.ca). The goal is to increase the share of defence procurement awarded to Canadian companies to 70%, up from the current level, and to create around 125,000 well-paid jobs in the value chain(pm.gc.ca).

For SMEs, this transformation means :

• Greater visibility on future purchasing priorities through quadrennial reviews of defence requirements(canada.ca).
• An explicit desire to forge long-term partnerships rather than one-off purchases, favoring planning and investment.
• A focus on dual technologies (civil and military): AI, cybersecurity, big data, quantum, robotics, new materials, energy and space(canada.ca).

Quebec SMEs, which already have a strong presence in aerospace, digital technologies and cybersecurity, are thus at the heart of the strategy. Quebec alone will account for $22.8 billion in aerospace sales by 2024, including more than 230 SME suppliers, and more than 90% of Canadian aircraft exports(economie.gouv.qc.ca). In a context where Ottawa wants to “buy Canadian” and further internalize the production of munitions, sensors, digital systems and platforms, the province’s companies have a real competitive advantage.

For SME managers, understanding these major orientations is not just a theoretical exercise: it’s the starting point for aligning their offering, export strategy and innovation roadmap with the concrete needs of the French defense industry and its major contractors. This approach benefits from the support of partners like Nuaweb, specialized in AI, digital solutions and data integration.

2. Key programs and facilities for Quebec SMEs

Canada’s defense strategy is more than just budget announcements. It is accompanied by very concrete mechanisms to further integrate SMEs into supply chains. Several programs are particularly relevant to Quebec companies.

The Innovation for Defence Excellence and Security (IDEaS) program is one of the best-known levers. It offers up to $6.75 million per project to propel technologies that meet defense operational challenges: applied AI, cybersecurity, sensors, robotics, autonomous systems, advanced analytics, etc.(canada.ca). SMEs can propose innovative solutions, benefit from support from military experts and test their products in near-real-life conditions via sandboxes.

In December 2025, the government also launched theRegional Defence Investment Initiative (RDII), endowed with $357.7 million nationally, including nearly $64.9 million exclusively for Quebec over three years(canada.ca). This initiative aims to :

• Accelerate the integration of SMEs into Canadian and international defense supply chains.
• Financingautomation, digital transformation and capacity-building projects.
• Strengthen SMEs’ ability to meet the sector’s stringent compliance, cybersecurity and traceability requirements.

Added to this is Canada’s Industrial and Technological Benefits (ITB) policy, which obliges major prime contractors to reinvest in the Canadian economy the equivalent of the value of their defense contracts. In practice, this translates into a growing demand for SME partners to supply components, software, engineering services, AI or cybersecurity solutions(canada.ca).

To maximize their chances, Quebec SMEs must :

• Structure a clear positioning on a few niches (sensors, AI, data integration, MRO, cybersecurity, logistics, etc.).
• Upgrade their digital tools (CRM, ERP, B2B e-commerce, supplier portals) to meet traceability and cybersecurity standards.
• Create strategic alliances with other SMEs to offer integrated solutions to major customers.

With this in mind, the implementation of a robust CRM is an asset for managing the long and complex sales cycles typical of the defense industry. An adapted solution, such as those implemented by Nuaweb via its CRM management offering, can track opportunities linked to calls for tender, trace interactions with integrators and document compliance requirements for each project.

3. Digital technologies, AI and cybersecurity: growth niches for SMEs

Modern defense increasingly relies on data, algorithms and interoperable systems. The Our North, Strong and Free policy explicitly emphasizes the role of emerging technologies: AI, big data, quantum, cyber, space, advanced sensors(canada.ca). For its part, the new Defence Industrial Strategy emphasizes the rise of sectors such as aerospace, cyber and digital, with the ambition of increasing Canadian defence exports by 50%(pm.gc.ca).

For Quebec SMEs specializing in IT, software or digital services, three major niches stand out:

• Cybersecurity and infrastructure resilience: protection of military systems and supply chains against cyberattacks, intrusion detection, encryption, identity and access management.
• Artificial intelligence and data analysis: processing of massive data (sensors, images, signals), decision support, predictive maintenance of air and naval fleets, logistics optimization.
• Integrated software solutions and platforms: fleet management systems, performance dashboards, secure supplier portals, collaboration tools for complex programs.

Quebec already boasts a strong ecosystem in these fields, bolstered by a fabric of aerospace and technology companies, as well as the presence of major players such as CAE, Bombardier and Pratt & Whitney, and a network of over 230 SME aerospace suppliers(economie.gouv.qc.ca). Digital SMEs can position themselves as partners to these major groups, providing specialized software bricks, AI modules or data integration tools.

This is precisely where experts in applied AI, intelligent chatbots and systems integration like Nuaweb can make a difference:

• Development of AI and automation solutions to accelerate operational data processing and reduce manual tasks.
• Implementation of secure chatbots for internal support, technical documentation or supplier portals.
• Creation of decision-making dashboards connected to CRM and project management systems to monitor major weapons programs.

In an environment where prime contractors demand proof of digital capability, a professional and credible online presence is also essential. The creation of a B2B-oriented website, adapted to international standards (English/French, technical data sheets, certifications, customer case studies), becomes a direct prospecting lever towards major defense integrators in Canada, Europe and the United States.

4. How can a Quebec SME position itself concretely in defense of the environment?

Moving from interest in the defense sector to concrete contracts requires a structured approach. Recent experience shows that the most successful SMEs generally follow a four-stage path, aligned with new trends in Canadian defense strategy.

1. Map your “defense” assets

This involves translating its existing offering into the language of defense needs: cybersecurity of critical infrastructures, secure communications solutions, AI for signal analysis, intelligent logistics, etc. Recent statistics show that the defense sector is more than three times more R&D-intensive than the Canadian manufacturing average, and employs 2.5 times more STEM profiles(pm.gc.ca). SMEs that can demonstrate a high capacity for innovation and a strong technical team have a clear advantage.

2. Connect to the right programs and networks

Platforms such as IDEaS, Canada Economic Development’sRDII for Quebec regions, and specialized trade shows (CANSEC, rendez-vous de l’aérospatial, cyber events) are essential entry points(canada.ca). Sector organizations and networks of innovators regularly publish calls for solutions related toOur North, Strong and Free priorities. A well-configured CRM strategy, such as that proposed by Nuaweb via its CRM management page, makes it possible to track these opportunities, segment prospects (integrators, ministries, partners) and steer response cycles to calls for tender.

3. Upgrade digital capabilities and brand image

Even before being selected as a supplier, an SME is assessed on :

• Process maturity (project tracking, quality, compliance, cybersecurity).
• Clarity of value proposition (website, product sheets, customer cases, certifications).
• Its ability to work in long-term project mode with multiple partners.

A professional digital presence – structured B2B website, B2B e-commerce page for certain components or services, defense-oriented technical content – facilitates credibility with premiums and agencies. Nuaweb already supports companies in setting up B2B online stores and creating websites tailored to these requirements: customer account management, secure documentation downloads, advanced forms for complex quotation requests, etc.

4. Structuring an AI and automation roadmap

Official defense policy documents and independent analyses converge: the ability to rapidly integrateAI, advanced analytics and automation into defense systems is now a key competitive criterion for suppliers(canada.ca). For a Quebec SME, this means:

• Identify high-value AI use cases (predictive maintenance, anomaly detection, data classification, internal conversational agents).
• Test proofs of concept with the support of programs like IDEaS or technical partners specialized in AI, such as Nuaweb.
• Gradually integrate these AI bricks into its core products or services to differentiate itself in calls for tender.

SMEs that position themselves now on this trajectory will benefit directly from the announced increase in defense spending – the industrial strategy anticipates 240% growth in Canadian defense industry revenues by 2035(pm.gc.ca) – while strengthening their export capacity in allied markets.

Conclusion: transforming defense strategy into a growth lever for your SME

The 2024-2025 trends of the Canada defence strategy open up an unprecedented window of opportunity for Quebec SMEs. With Canada’s defence industry already generating tens of billions of dollars in economic spinoffs and tens of thousands of jobs, and now supported by an industrial strategy quantifying over $500 billion in investments and opportunities over ten years (pm.gc.ca), companies capable of innovating, digitizing and meeting the demands of this sector have everything to gain.

To take advantage of this dynamic, your SME must :

• Align its offerings with defense priorities (cyber, AI, data, aerospace, logistics, digital systems).
• Take advantage of key programs such as IDEaS and RDII to finance innovation and capacity building.
• Strengthen digital maturity: CRM, B2B web platform, automation, niche e-commerce.
• Structure a clear AI strategy, supported by specialized partners.

Nuaweb supports Quebec SMEs in this transformation: applied AI, chatbots, B2B website creation, complex sales-oriented CRM, e-commerce for components or specialized services. If you want to position your company in the Canadian and international defense ecosystem, optimize your digital presence and build credible technological solutions for major prime contractors, we can help you move from theory to concrete projects.

Ready to explore the opportunities of the Canada defense strategy for your Quebec SME? Schedule a free consultation with Nuaweb to analyze your potential, identify your niche markets and define a digital and AI roadmap aligned with the needs of the defense sector.