Global Defence, Canadian Soil: Inside CANSEC
Ottawa saw the largest defence and security conference in its history, CANSEC. Held annually since 1998, the 2026 conference was the largest and most well-attended in the event’s history. With the Government of Canada’s increased focus on defence spending, many attendees also sensed an opportunity to sell their technology or their hardware to a potential buyer, whether on a B2B, B2G, or G2G basis.
StrategyCorp’s team was on the ground at this landmark conference; these are our key takeaways from the floor.
Geopolitics and Trade Considerations: Key Factor to Canada’s Approach
With over 100 international delegations in attendance, coupled with an increased Government of Canada presence from a wide variety of organizations (e.g., BDC, EDC, CCC, and Defence Industrial Agency), both public and private sector attendees sought to make the most out of the conference.
Overlaid on the entire event was the decision that Canada intends to make on the largest government procurement in its history, the $80 billion Canadian Patrol Submarine Project. The two competing bids, TKMS of Germany and Hanwha Ocean of South Korea, went above and beyond to try to dominate attention.
German Defence Minister Boris Pistorius was in attendance, touting a recent analysis on the billions of dollars of benefits to Canada, plus a delivery of two of the first subs in the order queue intended for Germany and Norway. Hanwha countered with re-emphasising many of the industrial benefits it has already pledged, announcing new benefits, along with an intense public relations display and a visit of a Hanwha-built sub to Victoria.
Canada Begins Negotiations with SAAB
Prime Minister Mark Carney became the first sitting Canadian Prime Minister to speak at CANSEC where he took the opportunity to announce that Sweden’s SAAB GlobalEye Early Warning and Control System was selected as “preferred supplier.” Built on a Canadian Bombardier aircraft platform, it is a demonstration where his government may be looking to partner foreign companies with Canadian industrial leaders and avoid U.S. procurement where possible.
Many also are reading that announcement into the upcoming decision on whether the government will continue to 100% procure the Lockheed Martin F-35, or to purchase SAAB’s Gripen fighter as part of a mixed fleet.
Implication: Canadian decision-makers are asking “what’s the return on sovereignty,” not just the return on investment when it comes to these decisions, both large and small.
Beware the Mos Eisley Cantina Effect
When any government announces the amount of spending that it plans to make, there’s always a rush of rent-seekers and opportunists trying to make a fast buck.
While walking the halls, we repeatedly overheard attendees say things like, “Wow, this is the largest CANSEC I’ve ever been to,” and “I can’t believe how busy it is.” Among established Canadian prime contractors and seasoned sector observers, there was a clear view that defence procurement has become the latest opportunistic growth market: 2016 had climate change analysts, 2021 had hand sanitizer makers, and 2026 now has no shortage of newly minted defence procurement experts.
In some ways, CANSEC felt a bit like watching the scene in Star Wars at the Mos Eisley cantina – rushed, opportunistic, and a bit chaotic. In short, where there is money to be made, governments and established players will need be careful, as was proven in the government’s procurement processes during COVID.
“Move fast and break things” might sound good as a principle given the need to ramp up government procurement, but decision-makers and key industry players know that getting from a “great idea” to a government contract remains a journey with several critical steps.
Implication: The hard work and due diligence, whether it is B2B, B2G, or G2G, still needs to be done, despite a range of programs and pockets of money being made available.
Defence is Not Just About Guns, Tanks, and Planes Anymore
If there was one unmistakable shift at CANSEC this year, it was the realization that the perimeter of national defence has fundamentally changed.
Cybersecurity and emerging technologies are no longer adjacent to the business of defence, they are central to it. This reality was underscored by Prime Minister Carney, who used his address to highlight just how deeply integrated technology has become with modern military capability. He explicitly noted the critical role of dual-use technologies, such as quantum computing and artificial intelligence, as Canada seeks to bolster its sovereign capabilities in strategic areas.
That shift in mindset was mirrored by the shifting attendance in the room itself. While the traditional defence contractors, systems integrators, and platform builders remained highly visible, they were joined by a robust and assertive presence from the cybersecurity and technology sectors.
Sir Richard Moore, the former head of MI6, used his keynote remarks to hammer home the necessity of cyber and intelligence in modern defence architecture. In a departure from tradition, senior Canadian cybersecurity officials were not just present, they were highly visible and extensively engaged. These are clear signals that the old silos are breaking down.
Promoting Canadian Firms and Defence Supply Chains
Several initiatives outlined in the Prime Minister’s speech could serve as the catalyst tech companies need to integrate into complex defence supply chains. Crucially, the government hopes to help defence and dual-use firms navigate the labyrinth of government programs and procurement pathways by rolling out a new defence concierge service at ISED. Yet the ultimate test of this concierge service will be execution. The ability to move at the “speed of business” and cut through entrenched government bureaucracy will determine whether it achieves its intended objectives.
Equally significant is the modernization of the Industrial and Technological Benefits (ITB) Policy, a lever designed to encourage large contractors to look more seriously at adding Canadian content to their supply chains. Historically, global systems integrators have been reluctant to alter their established tech stacks and supply networks. The new ITB measures may provide the necessary incentives to finally crack the door open for Canadian tech companies, particularly in high-value areas such as radar, sensing, quantum, AI, and cyber.
The Implication: Canadian technology firms have a real opening in this new defence landscape. But they cannot afford to be passive. They must aggressively assess where they fit within global supply chains and actively leverage partnerships with both established industry players and government.
The Bottom Line
The federal government’s stated priority to build Canada’s defence industrial capacity appears to be gaining traction. We are already seeing large defence contractors, many from abroad, promising Canadian partnerships and content to strengthen their bids. The ultimate test for the government, however, lies in turning procurement incentives into real contracts: ensuring value-for-money while getting vital equipment into the hands of the Canadian Armed Forces within reasonable timelines.
In a world where long-term strategy is increasingly measured in months rather than decades, the speed of integration will be the difference between leading the new frontier of defence, or being left behind.