How Canadian companies can enter Europe’s defence market

Europe’s increased defence spending is creating opportunities for Canadian companies, but success often depends on more than technical capability and price.

In many markets, companies that can contribute locally through partnerships, investment and supply chain participation may be better positioned to compete for those opportunities.

For Canadian exporters, market entry is often less about making a sale and more about becoming part of the broader defence and security network.

Many European defence procurement programs emphasize industrial participation, meaning the value a company brings to a country beyond the product or service being purchased. This can include investment, supplier development, technology transfer and job creation.

Gord Scharf, Export Development Canada’s (EDC) defence and security ecosystem lead, says in the defence sector, “the economic benefit is almost as important as the capability being procured.”

Canada’s new Defence Industrial Strategy takes a similar approach through its “Build, Partner, Buy” framework. It emphasizes building domestic industrial capacity, partnering with allies and strengthening supply chains.

For Canadian exporters, that framework offers a useful way to think about entering Europe’s defence market: Build local relevance, partner for access and identify where your capabilities fit within existing supply chains.

Partnerships can help companies do more than gain visibility. They can provide market knowledge, local credibility and access to procurement opportunities.

“These are very strong, established relationships that are required to ensure the stability needed to meet the demands that are steadily growing,” Scharf says.

Partnerships can take many forms, including:

• Joint ventures
• Research and development collaborations
• Training and workforce development
• Technology transfer
• Investment in local operations

This means approaching Europe less as a destination for one-off sales and more as a market where collaboration, co-development and long-term relationships can shape access.

Do companies entering Europe’s defence market need a local presence?

European buyers increasingly look for evidence of a long-term commitment to the market—through local partnerships, investment, representation, or operational presence.

The specific requirements vary by market and opportunities. In some cases, companies may be able to participate through local partners; in others, establishing a local footprint through acquisitions, joint ventures, or local operations may be a competitive advantage.

European defence markets are often more relationship-driven than Canadian companies expect and building trust can take time.

A Canadian company building a European presence

Meloche Group is a Quebec-based aerospace manufacturer that provides integrated design, engineering and production of aircraft components and assemblies for the aerospace and defence industries.

In May 2026, Meloche Group acquired Groupe Rossi Aéro, helping expand its presence in Europe and its ability to serve global aerospace and defence customers.

The acquisition, supported in part by EDC debt financing and investment, brings a French manufacturer into the aerospace and defence supply chain, serving both civil and military markets. It also enhances Meloche's ability to participate in critical global aerospace and defence programs.

One of the biggest misconceptions about defence exports is that opportunities only exist for companies delivering the final product. For many Canadian companies, opportunities may be found within existing defence supply chains.

Scharf says, “The supply chain is providing significant opportunities that often aren’t realized at first glance.”

Look beyond prime contractors

One of the most accessible entry points into Europe is as a supplier of specialized technologies, manufacturing capability and technical expertise to established defence contractors.

That aligns well with Canada’s strengths in advanced manufacturing, artificial intelligence (AI), cybersecurity, aerospace and industrial technology.

Your opportunity isn’t always to build the final product. It may be to provide a critical component that helps make that product possible.

If you’re new to defence and security, entering through the supply chain can also provide a lower-risk way to learn about the market, prove your capabilities and develop relationships before pursuing larger opportunities.

Build relationships through industry events

For companies still assessing the market, industry events and trade shows provide opportunities to connect with potential customers, suppliers and partners, while getting insight into market needs and procurement priorities.

Major annual and biennial events include the International Defence Industry Exhibition (MSPO) in Poland, Defence and Security Equipment International (DSEI) in the United Kingdom (U.K.) and Europe and Eurosatory in France. EDC representatives attend many of these events and can help you understand market opportunities and make connections.

Industry associations such as the Canadian Association of Defence and Security Industries (CADSI) maintain a list of upcoming defence and security events. Companies can also work with EDC and the Trade Commissioner Service (TCS) to identify relevant opportunities.

Procurement priorities, industrial capabilities and cultural expectations vary significantly across Europe, so you'll need to identify which markets best match your capabilities and market entry approach.

Poland: Rapid growth and partnership opportunities

Since Russia’s full-scale invasion of Ukraine in 2022, Poland has significantly increased defence spending. In 2025 alone, it committed nearly C$70 billion, about 4.7% of its gross domestic product (GDP). This investment is creating opportunities for defence and security companies, as well as businesses whose technologies can be used for both civilian and defence purposes (dual-use technology).

Technology and know-how: Canadian companies that can contribute through technology collaboration, training, research and development, or local partnerships may be better positioned than those pursuing a purely transactional sales approach.

Civil defence and border security: Poland’s growing focus on security and border protection is creating demand for a wide range of technologies and services, including aerospace, surveillance, sensors, communications and other dual-use applications.

Discover more about doing business in Poland.

Germany: Established networks and industrial strength

Germany’s defence industry is built around established prime contractors, sophisticated manufacturing capabilities and extensive supplier networks. For Canadian companies, opportunities here are more about finding a place within its industrial network.

Innovation opportunities: Klaus Houben, EDC’s business development director for Europe, says Germany is actively looking for startups and innovative technologies that can be adapted for defence applications. There are opportunities for Canadian companies in AI, digitization, drones, sensors, resilient communications, autonomous systems and dual-use innovation.

Trust and relationships: Germany “isn’t a transaction-oriented market,” says Houben. Building relationships and establishing credibility can be as important as having the right technology.

Discover more about exporting to Germany.

Baltics: Strategic entry point to Europe

Estonia, Latvia and Lithuania continue to increase spending on defence, security and civil protection.

Gateway to the broader European market: Smaller markets, like the Baltics, may be more accessible than larger European defence markets. They can provide a practical starting point for companies looking to establish relationships and get experience in the region.

Security and resilience: As frontline NATO (North Atlantic Treaty Organization) countries, the Baltics are investing in border security, surveillance, civil protection and dual-use technologies. Companies offering solutions in those areas may find opportunities that extend beyond traditional defence procurement.

Fast-moving markets: The Baltics are agile and can often move faster than larger European markets to identify and adopt new defence and border security technologies.

Discover country and market information about the Baltics.

You may not see yourself as a defence supplier, especially if you work in communications, sensors, AI, or advanced manufacturing.

But governments in Europe are investing in border security, surveillance, civil protection and infrastructure, as well as military capabilities. This provides potential opportunities for companies operating in sectors such as aerospace, sensors, cybersecurity, communications and advanced imaging technologies.

Technologies used for border monitoring, emergency response, wildfire detection, communications, or critical infrastructure protection may also have applications within broader defence and security programs.

Houben says some German automotive suppliers are also exploring how existing engineering and manufacturing capabilities could support defence and security programs. As governments expand defence spending and production, capabilities in other sectors are increasingly relevant.

EDC supports Canadian companies across the defence and security sector with market insights, relationship-building opportunities and sector expertise.

With offices across Europe, we can help connect you with buyers, suppliers and partners while helping you understand market dynamics and procurement trends. EDC also supports the Government of Canada’s newly established Strategic Exports Office (SEO), which helps Canadian companies in strategic sectors pursue major international opportunities.

Understanding where opportunities exist and how procurement decisions are made can help you develop a more effective, defence market entry strategy.

Financing growth

Companies entering European markets may need to access more working capital to fulfill orders, hire staff, invest in equipment, or meet contract requirements. Others may need financing, guarantees, or insurance solutions to support expansion.

Building a stronger presence in Europe may also involve acquisitions, joint ventures, or other strategic investments.

EDC supports companies pursuing these growth opportunities, including businesses working within larger defence supply chains rather than exporting finished products directly.

Increased defence spending across Europe is creating opportunities for Canadian companies, but you must approach the market strategically. Companies that understand buyer expectations, build the right partnerships and identify where they fit within European defence networks will be better positioned to compete and grow over time.
 

Contact your relationship manager or submit a product inquiry to explore how EDC can support your growth in Europe’s defence and security market.