State of the Canadian space sector

President's message

I am pleased to present the State of the Canadian Space Sector Report 2023. The report, which has been published since 1996, contributes to our understanding of the sector by providing comprehensive data and trend analysis on the economic activity generated by the Canadian space sector.

The report is based on information gathered from almost 200 organizations involved in space activities from across Canada, including small businesses, multinational space companies, not-for-profit organizations, research centres and universities. Each of these organizations contributes to the Canadian space economy, with large organizations generating the highest revenues (58%), SMEs reporting the majority of exports (58%), and universities and research centres supporting a substantial workforce of over 2,500 employees.

Notably, the Canadian space sector experienced modest growth in 2022 and is still recovering from the lows experienced during the pandemic.

Revenues are recovering and our GDP impact is growing. Overall revenues grew 3.1% from last year, reaching $5.0B. Exports were the primary area of growth, increasing 12% from 2021 to reach $2.0B in 2022. Domestic revenues declined slightly to $3.0B (−2%) but have mostly re-emerged from the impacts of the pandemic. The space sector is estimated to have contributed $3.2B to Canada's GDP in 2022, a significant rise over 2021 and continuing a trend of growth in this area (+19% from 2018 to 2022).

The workforce continues to grow at a rapid pace. The Canadian space workforce expanded by 8.6% in 2022 to 12,624 space-related jobs. Workforce multiplier impacts indicate that activities in the space sector supported an additional 12,612 jobs in the wider Canadian economy. Organizations have increasingly highlighted that competition for experts in the sector is high, leading to labour shortages.

Research and Development (R&D) activity reached new peak levels. R&D expenditures continued to increase in 2022, reaching a new all-time high of $593M (+8%). As in previous years, the increased R&D activity is primarily led by the private sector, supporting a growing downstream market in Canada.

CSA funding programs are making a big difference. An ongoing analysis of return on investment (ROI) for CSA space development programs revealed that for every dollar invested, three dollars are returned through follow-on revenues five years after a project has completed.

Space is often characterized as hard, expensive, and risky. It also supports all aspects of our daily lives. Space investments drive innovation, create high-quality jobs and fuel economic growth – as demonstrated in this report. Whether it's launching satellites, exploring our universe, developing cutting-edge technologies, or making novel scientific discoveries, these investments directly contribute to improving the lives of Canadians right here on Earth. As we continue to invest in the space sector, the economic benefits will continue to grow, positioning Canada as a key player in the global space industry for the long term.

I would like to convey my gratitude to all those who contributed to the 2023 survey. This publication would not be possible without the generous collaboration of members of the Canadian space industry and academia.