Key Takeaways:
- Canada’s drone industry is rapidly expanding due to increased defense spending and government initiatives to build domestic sovereign capabilities in uncrewed systems
- Canadian companies are developing diverse uncrewed systems for air, land, and sea applications including intelligence gathering, electronic warfare, cargo transport, medical evacuation, mine laying, mine countermeasures, and underwater inspection
- The Canadian government has identified uncrewed and autonomous systems as one of 10 sovereign capabilities it aims to develop domestically, with plans to allocate 5% of GDP to defense by 2035
- Canadian companies like Volatus Aerospace, Sentinel R&D, Pegasus Aeronautics, Open Ocean Robotics, Deep Trekker, Kraken Robotics, InDro Robotics, and INKAS are developing domestically manufactured systems to meet defense needs while also serving commercial markets
- Canada aims to build domestic sovereign capabilities in uncrewed systems to ensure supply chain resilience and reduce reliance on foreign suppliers, particularly as evidenced by lessons from Ukraine and Middle East conflicts
Canada’s Drone Industry Rises to Meet Growing Defense Demands
Canada’s drone industry is experiencing unprecedented growth as the federal government ramps up defense spending and prioritizes domestic production of uncrewed systems. With the Canadian government planning to allocate 5% of GDP to defense by 2035 and identifying uncrewed and autonomous systems as one of 10 sovereign capabilities it aims to develop domestically, Canadian companies are rapidly expanding their capabilities to meet both military and commercial demands.
Volatus Aerospace Leads Canada’s Domestic Drone Manufacturing Push
Volatus Aerospace Corp., a drone reseller, trainer, manufacturer and service provider headquartered in Vaughan, Ontario, exemplifies Canada’s growing drone industry capabilities. The company employs around 200 full-time staff across seven offices in Canada, the United States and Britain, generating approximately $10 million in revenue per fiscal quarter. Volatus operates a testing facility in Kleinburg, Ontario, where it tests new technologies and trains operators when they’re not in the classroom at company headquarters.
Later that day, a group of Volatus pilots from its U.S. and Canadian operations came to the Kleinburg field to test a low-cost drone with a flight endurance of an hour and a half – perfect for intelligence, surveillance or reconnaissance flights carried out by the military. Through facilities like this, and its new domestic manufacturing hub, Volatus is raising the stakes of what’s possible for a Canadian drone company.
Canadian Government Identifies Uncrewed Systems as Sovereign Capability
The federal government has identified uncrewed and autonomous systems as one of 10 sovereign capabilities it wants to build at home. Canadian companies headquartered across the country are already building their uncrewed vehicles at home and abroad, ready to meet domestic demand. This strategic focus reflects lessons learned from recent conflicts where inexpensive drones have proven remarkably effective against expensive traditional military systems.
Canadian Companies Develop Diverse Uncrewed Aerial Systems
Canadian companies are developing diverse uncrewed aerial systems for multiple military applications. ReKam, a fixed-wing uncrewed aerial vehicle designed by Sentinel R&D, is payload agnostic, meaning it can be used for anything from intelligence, surveillance and reconnaissance to electronic warfare to counterdrone missions, depending on how it’s configured. The platform can be launched in various ways and has a range of 500 kilometres.
Pegasus Aeronautics has developed hybrid powertrains that combine fuel and batteries, making them particularly adept at operating in harsh environments such as the Arctic. According to CEO Matt McRoberts, "That’s where our system really excels." These innovations address specific Canadian operational needs, particularly for northern operations.
Canadian Companies Develop Uncrewed Ground Vehicles
Canadian companies are also developing capable uncrewed ground vehicles for military applications. INKAS’ Heemar uncrewed ground vehicle is designed to evacuate wounded personnel, carry cargo and lay landmines (though this latter use requires a separate attachment). It’s remotely operated, with a range of 45 kilometres and a top speed of 16 km/h. As a transport platform, it can carry up to 350 kilograms and as a landmine layer, it can carry up to 16 mines.
InDro Robotics makes a variety of platforms from aerial drones to humanoids, but its uncrewed ground vehicles are seeing the most demand. Founded in 2014, InDro won its first contract with the Department of National Defence about five years ago through an Innovation for Defence Excellence and Security competition, receiving approximately $2.2 million to help build a ground platform that can carry supplies or act as a stretcher.
Canadian Companies Develop Uncrewed Maritime Systems
Canadian companies are also making significant strides in uncrewed maritime systems. Open Ocean Robotics, based in Victoria, British Columbia, builds endurance vessels capable of navigating rough seas and collecting data along the way. The company’s founder, Julie Angus, was inspired to design and build solar-powered autonomous surface vessels after spending five months rowing across the Atlantic Ocean.
Open Ocean has worked with the U.S. Navy and Defence Research and Development Canada since its founding in 2018, focusing largely on maritime security and domain awareness. The company is "hardening" its technologies for Arctic use, which includes training its artificial-intelligence-powered camera vision to operate in icy environments and reinforcing the hulls of its boats.
Deep Trekker, headquartered in Kitchener, Ontario, builds remotely operated vehicles for underwater inspections and monitoring. Founded in 2010, the company initially focused on shipwreck exploration and underwater archaeology but has seen significant growth in the defense market for applications such as underwater mine and threat identification.
Kraken Robotics Advances Underwater Drone Technology
Kraken Robotics Inc., headquartered in Mount Pearl, Newfoundland and Labrador, has made significant advances in underwater drone technology. Founded in 2012 to commercialize synthetic aperture sonar, which is used to capture high-resolution images, Kraken employs about 450 people and has offices in Canada, the U.S., Brazil, Britain and Germany.
Kraken’s sonar and optical sensor technology, and subsea batteries, are sought out by navies all over the world, as well as offshore energy companies, to image the sea floor and things buried within it, such as unexploded mines. Kraken sells an underwater drone, called the KATFISH, in addition to sales of its sonar and subsea lithium-ion batteries, which other companies buy to supplement their own autonomous vehicles.
In 2020, Kraken generated about $12 million in revenue. Five years later, that number climbed to more than $100 million. "The defense market has taken off a fair amount," said Greg Reid, president and CEO at Kraken Robotics Inc. "If you lose a couple of $20-million dollar drones, it’s not great, but it’s way better than losing a whole multibillion-dollar submarine," Reid said. "Plus, you’re keeping people out of harm’s way."
Canadian Companies Pursue Domestic Manufacturing Capabilities
In response to Ottawa’s call for Canadian companies to build at home, Volatus is gearing up its domestic manufacturing capabilities. It recently moved into an approximately 53,000 square-foot facility in Mirabel, Quebec. There, it’s developing seven different products, including three medium-altitude, long-endurance uncrewed aircraft with surveillance, reconnaissance and strike capabilities – a significant production line the Canadian Armed Forces can access at home.
The largest of these three drones will have a wingspan of 10 metres and two of them will be Arctic-operable, thanks to their use of heavy fuel, weather-resistant materials and ability to operate in environments with limited communications. Other systems Volatus plans to produce in Mirabel include a helicopter drone designed for heavy lifts, a remote drone deployment dock, an interceptor drone and smaller, low-cost systems to meet Canadian defence requirements. By early summer 2026, Volatus expects to be flying completed aircraft out of the Mirabel facility.
Sentinel R&D’s ReKam platform is designed and manufactured entirely in Canada. It has a range of around 500 kilometres and a top horizontal speed of more than 180 kilometres per hour. "It can fulfill a very wide mission set. Everything from surveillance and reconnaissance to small cargo delivery to strike to signal relay to electronic warfare," said Kath Intson, CEO of Sentinel R&D. Owing to a recent partnership, it’s also one of the products Volatus will help assemble and integrate components for in Mirabel.
Canadian Industry Prepares to Meet Defense Needs
As director of joint requirements for the Forces, Colonel Chris Labbé said it’s in his best interest to ensure members have the weapons they need when they need them. "That includes making sure that our supply chains for weapons systems and drones, for example, are assured," he said. "So that if we need to, for example, scale up production because we have a lot of demand, Canada is in a position to do so."
Jordan Cicoria, a board member of the Aerial Evolution Association of Canada, which represents stakeholders in the aerial, remotely piloted systems sector, noted: "We have to start doing it at least in small enough batches that should we have to ramp up, we can. Should we have that supply chain cut off, we’re not completely dead in the water." As Glen Lynch, chief executive officer of Volatus, said: "Industry is going to do well, if they don’t get in one another’s way."
Julie Angus of Open Ocean Robotics noted: "The pace of adoption for uncrewed technologies is accelerating." To meet the domestic demand, Ms. Angus said Open Ocean is "hardening" its technologies for Arctic use.
As Jordan Cicoria concluded: "We don’t have a choice. We have to." This sentiment reflects the growing consensus across Canada’s defense industry that developing sovereign capabilities in uncrewed systems is essential for national security in an era where inexpensive drones are transforming modern warfare.