This article appeared in our Defence Forecast 2025 guide, which highlights the hot topics impacting Canada's aerospace and defence industries. Read the Forecast here.

Drones—also known as unmanned aircraft systems (“UAS”), unmanned aerial vehicles (“UAV”), or remotely piloted aviation systems (“RPAS”)—are rapidly reshaping industries and are becoming a staple in the modern world.

The unmanned nature of drones is especially advantageous when human involvement is risky, expensive, or impossible. From widespread use in search and rescue, to conducting ice surveys in Canada’s north by Canada’s Coast Guard, drones are becoming an important tool in many organizations’ toolboxes. Canada’s Armed Forces (“CAF”) is no exception, with a multitude of drone-related projects taking off.

Recent geopolitical events have emphasized the role drones play, and will continue to play, in the defence and aerospace sectors around the world. Here, we review a few recent drone-related projects, consider some of the issues and challenges related to drones and look at the use of drones in Canada going forward. 

Ongoing CAF drone projects

Some critics have lamented Canada’s lack of investment in drone technologies; however, there are some signs investments are on the horizon. Drones are being deployed by police forces across Canada, including by the RCMP to patrol Canada’s borders.

Recently, the CAF has announced several drone-related projects, including the following three notable projects:

1. Armed remotely piloted aviation systems for CAF

In December 2023, Canada announced it will invest $2.49 billion to acquire RPAS capability. This will include a fleet of 11 MQ-9B SkyGuardian drones (SkyGuardians). These drones are roughly the size of a fighter jet and would be capable of being deployed in harsh Arctic climates.

As of the end of 2024, two of the SkyGuardian drones were in production. Delivery of the SkyGuardians fleet is expected in 2028, with full operational capability by 2033.[1] These drones would be the first armed drones acquired by the CAF.[2]

2. Counter-drone technology for Operation Reassurance

In February 2024, Canada announced a $46 million investment to acquire counter-drone equipment for CAF members deployed in Latvia (Operation Reassurance) on an urgent basis.[3]

This equipment is meant to combat against hostile small drones. Initial operational capability for this new equipment was expected for the end of 2024; as of February 2025, it remains unclear if such equipment is fully operational.[4] This project is limited to providing counter-drone technology for Operation Reassurance, rather than for CAF as a whole.

3. Teal 2 drones acquisition

In March 2024, the CAF received a $4 million order of fifty “Teal 2” drones. Teal 2 drones are smaller, American made, military-grade drones that can be used for surveillance and inspection. These drones have been distributed to the Canadian Army and the Royal Canadian Navy and appear to now be in service.[5] 

Issues and challenges related to the use of drones

There are many legal, ethical and practical issues and challenges relating to the use and development of drones and drone technologies.

1. Regulating the operation of drones

Canada, like many countries, has numerous regulations that govern the operation of drones. The Canadian Aviation Regulations (“CARs”) are the primary regulations that govern the use of drones in Canada and are administered by Transport Canada. Notably, these regulations include licensing requirements and airspace restrictions relating to drone use in Canada. The importance of drone regulation was highlighted recently when an unauthorized drone collided with, and grounded, a Canadian water bomber fighting the devastating fires in Los Angeles.

In an aim to encourage Canada’s economic growth in the drone space, Canada plans to update its regulations in 2025. This update will include a reduction of certain bureaucratic barriers for drone operators to perform lower risk beyond visual line of sight operations (something which previously would have required a special flight operations certificate).

2. Privacy concerns

The use of drones also gives rise to privacy issues. Drones have made surveillance and tracking more accessible than ever before. In particular, drones are increasingly being used for surveillance by different organizations and government bodies, which in turn brings new questions of privacy and transparency to the forefront.[6] 

3. Drone technologies, export control and national security

Finally, using drone technologies and participating in the drone industry gives rise to a host of issues relating to export control and national security.

As an example, the U.S. is considering banning drones made by DJI, a Chinese company, over national security concerns. With DJI holding 70 per cent of the global consumer drone market,[7] a ban in the U.S. will have a ripple effect for those in Canada that use or service DJI drones.

Similarly, in the current geopolitical environment, there are many export controls on technologies that can end up in drones. Industry participants would be well advised to fully consider export restrictions before exporting drone related technologies from Canada.

Canada’s drone capabilities, 2025 and onwards

Comparatively, Canada lags behind many other countries in its use and investment in drone technologies.

For example, more than thirty countries have armed drone capability: the U.K. had such capability in 2008, Italy in 2015 and Spain in 2015.[8] In comparison, Canada’s first armed drone capability, the SkyGuardians, was only acquired in 2023 and will not be fully deployed until 2033.

Going forward, however, we can expect drones to be a more integral part of Canada’s defence and security spending. This was exemplified in December 2024, when Canada announced its commitment to strengthening Canada’s border security, which includes the use of drones and counter-drone technology at the Canada-U.S. border.[9] 

This is an exciting time for the drone industry in Canada. We are seeing a willingness from the regulator to keep up with developments and attempt to ease the red tape around drone use, along with a growth in drone-related projects. While industry participants must be vigilant in considering the various issues drone use and technologies present, there are clearly significant opportunities in this space.


[1] National Defence, “Canada acquiring Remotely Piloted Aircraft Systems for the Canadian Armed Forces” Government of Canada (December 19, 2023).

[4] Ibid.

[5] David Pugliese, “No plans to buy first-person drones for Canadian Armed Forces” Ottawa Citizen (November 22, 2024).

[6] Lynn Saxberg, “Ottawa police flying drones at CityFolk, Bluesfest worries surveillance experts” Ottawa Citizen (September 24, 2024); James O’Donnell, “Why you’re about to see a lot more drones in the sky” MIT Technology Review (August 20, 2024).

[7] David Hambling, “Latest Chinese Drone Update Could Cause Chaos Across U.S” Forbes (January 17, 2025).

[8] All Party Parliamentary Group on Drones Inquiry Report, “The UK’s Use of Armed Drones: Working with Partners” (July 2018) at page 24; Andrea Shalal, “U.S. government approves Italy’s request to arm its drones” Reuters (November 4, 2015); Miguel González, “Spain’s Defense Ministry to spend €171 million on purchase of four drones” El País (August 6, 2015).