Montréal-based Galvion has secured a Latvian military equipment framework worth up to €27.8m under the EU’s Security Action for Europe (SAFE) scheme. In the other direction, Germany’s TKMS and Sweden’s Saab are pursuing major submarine and surveillance aircraft programmes with Ottawa.

Beyond procurement, Canada has applied to join the UK-led Joint Expeditionary Force (JEF). On 10 November, its ten existing members agreed plans for closer naval cooperation. Britain also announced a separate framework paving the way for £90m of investment in Atlantic Net undersea surveillance.

Visiongain Top Takeaways

• European procurement: Canadian content can account for up to 80% of eligible SAFE contracts, subject to participation terms.
• Canadian orders: TKMS has preferred-supplier status for up to 12 submarines, while Saab has signed a non-binding term sheet for six GlobalEye aircraft.
• Naval cooperation: Canada has applied to join the JEF, whose members plan closer integration of autonomous systems and naval command networks.
• Undersea surveillance: Ocean Infinity’s Atlantic Net framework opens the way for £90m of UK investment in underwater monitoring.

Canada Gains Access to European Defence Procurement

Canada became the first non-European country to participate in SAFE. Its agreement entered into force on 1 August 2026, giving Canadian suppliers access to procurement financed through up to €150bn in loans to EU member states.

Canadian content can represent up to 80% of an eligible contract’s value. Where EU, eligible European Economic Area (EEA) or Ukrainian content accounts for 65% or less, Canada pays a participation contribution equal to 15% of the Canadian-content value. The fee is paid by Ottawa, not directly by suppliers.

On 30 October, Galvion announced a five-year Latvian framework for ballistic helmets, accessories and maintenance services. The €27.8m represents the maximum potential value, rather than guaranteed orders.

Galvion already operates a production hub in Gdańsk, Poland, and plans to work with Latvian industry, providing an established European manufacturing and support base.

A second route into European-led procurement could emerge through the EU’s separate €90bn Ukraine Support Loan. Canada intends to participate, potentially giving eligible Canadian companies access to contracts within its approximately €60bn defence component. The final participation arrangements remain outstanding.

European Suppliers Pursue Canada’s Major Defence Orders

In July, Canada selected Thyssenkrupp Marine Systems (TKMS) as preferred supplier for up to 12 German-Norwegian Type 212CD submarines. Ottawa aims to conclude negotiations by the end of 2027, with the first four vessels planned for delivery in 2034. South Korea’s Hanwha Ocean remains the reserve supplier.

Canada requires economic benefits equivalent to 100% of the submarine contract’s value. These include domestic maintenance and long-term support capabilities, as well as investment in other Canadian industries.

Saab is negotiating a separate programme for six GlobalEye airborne early warning and control aircraft. On 25 September, the company signed a non-binding term sheet with Canada’s Defence Investment Agency, establishing the basis for further negotiations. No purchase contract has been agreed. GlobalEye uses Bombardier’s Canadian-built Global 6500 aircraft, providing an existing manufacturing link to Canada’s aerospace industry.

The industrial requirements will influence the economics of both programmes, particularly how much work and long-term investment European contractors commit to Canada.

Canada’s Budget Prioritises Drones and European Defence

Canada’s 5 November budget proposes C$2.3bn over five years, beginning in 2027–28, for its Defence Drone Initiative. Launched in July, the programme covers uncrewed and counter-drone systems, with access to nearly 400 Canadian suppliers. Some funding was already provisioned.

The budget also proposes C$7.6bn from existing defence resources to extend and expand Operation REASSURANCE through 2031. Ottawa plans to increase its persistent military deployment on NATO’s eastern flank to as many as 2,600 personnel.

Canada Seeks Closer Naval Cooperation

Canada formally applied to join the ten-nation JEF on 16 September. On 10 November, its existing members signed the Northern Navies Initiative, setting out plans for closer maritime operations across the North Atlantic, Baltic Sea and High North. Canada is not yet a member and did not sign the agreement.

The initiative envisages autonomous systems working across national command networks, alongside greater use of allied ports for repairs, refuelling and resupply.

Compatible equipment and operating standards could create opportunities for suppliers serving several allied navies. However, the agreement does not establish a joint procurement programme.

Royal Navy Advances £90m Atlantic Net Programme

Also on 10 November, the Ministry of Defence announced a framework agreement with Hampshire-based Ocean Infinity Solutions, paving the way for an initial £90m investment in Atlantic Net.

The first phase of the Royal Navy’s Atlantic Bastion programme will combine uncrewed platforms, underwater sensors and data services to monitor submarine activity and protect critical infrastructure. Initial coverage is expected around the Greenland–Iceland–UK (GIUK) gap, with operational capability targeted for 2027.

The MoD expects the programme to support almost 200 skilled jobs.

Atlantic Net remains a UK initiative, although NATO and JEF partners are expected to benefit from improved surveillance.

The delivery model is notable. Ocean Infinity will provide an integrated surveillance service under Royal Navy direction, rather than simply supplying equipment. System reliability, data integration and operating costs will be important measures of success.

Market Outlook

Visiongain forecasts the global Undersea Defence Infrastructure & Security Market to grow from US$29.47bn in 2026 to US$56.75bn by 2036, at a CAGR of 6.8%.

Investment in persistent surveillance is supporting demand for integrated sensors, data services and long-term operational support. Procurement cycles, certification requirements and interoperability remain barriers to bringing new capabilities into service.

Visiongain Insight

Canada’s closer defence relationship with Europe presents different commercial conditions for suppliers on each side of the Atlantic.

Canadian manufacturers can compete for SAFE-backed orders, subject to content rules. European companies pursuing Canadian programmes face substantial industrial investment requirements. Meanwhile, closer naval cooperation could widen demand for interoperable technologies without necessarily creating common procurement arrangements.

Companies assessing these markets must distinguish between contracts already awarded, programmes under negotiation and future opportunities that have yet to receive procurement commitments.

From Visiongain

Visiongain’s defence research provides country-level market forecasts, competitive intelligence and technology analysis to help businesses assess where demand is growing and which suppliers are positioned to benefit.

The Undersea Defence Infrastructure & Security Market Report 2026–2036 examines investment across Canada, Europe and other major markets, including surveillance technologies, procurement models and profiles of companies such as Ocean Infinity and Saab.

The Military Communications & COTS Market Report 2026–2036 analyses secure communications, network interoperability and emerging technologies, with detailed forecasts and competitive analysis through 2036.

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