State of the Canadian space sector

President's message

I am pleased to present the State of the Canadian Space Sector Report 2024. This annual report plays a longstanding and crucial role in deepening our insights into the economic activity generated by the space sector in Canada. The analysis in this year's report was derived from space organizations dispersed across Canada. It includes businesses of all sizes, not-for-profit organizations, Canadian government departments, research centres, as well as universities. Each of these organizations is integral to the Canadian space economy, with large organizations generating the highest revenues (64%), SMEs capturing a significant portion of the export market (39%), and universities and research centres supporting a substantial workforce of almost 2,800 employees.

This report strives to unpack the invisible benefits of space and demonstrate tangible impacts derived from across the country. The Canadian space sector is mature, forward-looking, and diverse in capability. These qualities make the sector well positioned to shape the future and capitalize on domestic and international opportunities. In fact, many areas of the Canadian space economy are showing strong performance, and we have even uncovered a number of new record-breaking highs. Highlights include:

• Contribution to GDP continues to grow. The space sector is estimated to have contributed $3.4B to Canada's GDP in 2023. This marks a new all-time high, reflecting an upward real growth trend of +8.4% from 2019 to 2023.
• Revenues remain stable. Overall revenues grew 0.8% from last year, reaching $5.1B in 2023. Exports were the primary area of growth, increasing 9% from 2022 to reach $2.2B in 2023. Domestic revenues declined to $2.9B (-5%). The divergence in growth between exports and domestic revenues reflects the difficulties present in satellite communication (a declining broadcasting sector), despite growth in the Earth observation, space exploration, and navigation sectors of the space economy. The demand for broadcasting services is expected to continue to decline as customers change their behaviours towards other products, including Internet-based services. This shift also creates future opportunities for the space sector through satellite-based solutions given the strong demand for reliable Internet.
• The workforce is expanding and in demand. The Canadian space workforce grew by 5.9% in 2023 to 13,888 space-related jobs – marking a new all-time high. Workforce multiplier impacts indicate that activities in the space sector supported an additional 12,592 jobs in the wider Canadian economy. Canada's space workforce is highly specialized given that 70% are science, technology, engineering and mathematics (STEM) employees and 73% are highly qualified personnel (HQP). Organizations have increasingly highlighted competition and labour shortages for experts in software and business development, applications of artificial intelligence, and mechanical engineering systems.
• Investment in innovation is booming and producing results. Research and Development (R&D) expenditures increased again in 2023, reaching another new all-time high of $650M (+10%). As in previous years, the increased R&D activity is primarily led by the private sector, creating opportunities for new development and growth in both the upstream and the downstream market in Canada. There was also a significant increase in activity related to inventions and patents. The number of inventions climbed by +33% while registered patents rose dramatically by +114% compared to last year.
• CSA funding programs are helping companies leap forward. The Government of Canada has been making strategic investments and providing substantial support to the sector in all space domains. This support has helped generate new products and services that have enabled Canadian organizations to thrive in the sector. An ongoing analysis of return on investment (ROI) for CSA space development programs revealed that for every dollar invested, three dollars and sixty cents are returned through follow-on revenues five years after a project has completed.

As evidenced through this report, the space sector plays an important role in driving economic growth, fuelling innovation, and supporting industries that keep our economy strong. In a sense, the space sector quietly acts as a backbone for our modern society and provides crucial services that we rely on every day. The demand for these products and services continues to be strong as space-based solutions are needed in our fast-paced world.

I would like to convey my gratitude to all those who contributed to the 2024 survey. This publication would not be possible without the generous collaboration of members of the Canadian space industry and academia.