The aerospace and defense market consists of aircraft, weapons, and military equipment. The aerospace industry is involved in developing and manufacturing or assembling complete aircraft, and aircraft parts for commercial purposes while weapons and military equipment deal with defense purposes. The global aerospace & defense market size is $755.24 billion in 2022.
Canada remains one of the world’s largest aerospace markets and ranks first for civil flight simulator production, third in civil engine production, and fourth in civil aircraft production. Approximately 80% of Canada’s aerospace sector is civil-oriented, and 20% is military-oriented. Montréal is the world’s third-largest aerospace hub after Seattle, Washington, and Toulouse, France, and contributes to over 70% of Canadian aerospace research and development (R&D). Canada has 5% of the worldwide sales in aerospace, while the province of Quebec alone has a 3% share, which qualifies it as the sixth in worldwide sales.
Canada’s aerospace sector activities are divided into two main subsectors:
Aircraft manufacturing (civil, defense, and space) (69%)
Aircraft maintenance, repair, and overhaul (MRO) (31%)
The Aerospace Manufacturing industry in Canada largely produces parts for commercial use. Therefore, demand is contingent on demand from enterprises such as airlines, MRO, and commercial enterprises. These markets are exposed to overall economic conditions and adjust their demand for aircraft and related parts according to the health of the economy.