Montenegro’s defense sector is shaped by its North Atlantic Treaty Organization (NATO) membership and regional security dynamics. The country prioritizes modernization, interoperability, and resilience against hybrid threats. Montenegro’s defense strategy supports European Union (EU) operations and emphasizes territorial security.
Defence market in Montenegro
Key opportunities for Canadian defence companies in Montenegro
- Land systems and tactical vehicles: procurement of JLTVs and related simulators presents opportunities for Canadian firms in vehicle systems, remote-controlled weapon station (RCWS) integration, and maintenance support
- Surveillance and navigation technologies: demand for electro-optical/infrared (EO/IR) systems, unmanned aerial vehicles (UAVs), and global navigation satellite systems (GNSS) navigation opens doors for Canadian companies specializing in advanced optics and unmanned systems
- Training and simulation: investments in simulation technologies and training infrastructure align with Canadian expertise in defense education and capacity building
- Infrastructure development: ongoing projects for hangars, command buildings, and operational facilities may benefit Canadian firms offering engineering and construction services
Industry highlights
2.02% defence contribution to GDP
CAD 225 million defence budget in 2025
More than 9% compound annual growth (CAGR) for budget expected in the coming years
5 Canadian defence companies already have a presence in Montenegro
CAD 1 million in total defence exports
Notable challenges for Canadian defence companies in Montenegro
- Limited domestic market: Montenegro’s small defense budget and production capacity may constrain large-scale opportunities
- Dependence on external suppliers: heavy reliance on foreign partners and donor contributions could limit direct procurement from new entrants
- Regulatory navigation: understanding Montenegro’s procurement processes and NATO compliance requirements is essential for successful market entry
Montenegro's business landscape
Montenegro’s defense industry is modest, but open to foreign direct investment and technology transfer. Donor support from countries like the United States (U.S.), Germany, Turkey, and Slovenia enhances Montenegro’s capabilities through equipment donations and infrastructure development.
Regional cooperation with Slovenia and North Macedonia strengthens logistics and maintenance networks. Meanwhile, NATO standardization efforts (402 ratification responses) reflect Montenegro’s commitment to alliance integration. Montenegro has an active government-to-government agreement with Canadian Commercial Corporation (CCC).
Summary
Montenegro offers niche opportunities for Canadian defense companies, particularly in:
- land systems
- surveillance technologies
- training solutions
While the market is small, its strategic alignment with NATO and openness to foreign partnerships make it a viable entry point for firms seeking to expand in Southeast Europe. Collaboration through NATO and regional initiatives may further ease market access and long-term success.
Contact us
For more information on the defence sector in Montenegro, please contact bgradtd@international.gc.ca.