The space economy in Canada will be worth $40 billion by 2040, but only if industry receives the right support to get to that point, according to a recently released report by Deloitte Canada in collaboration with industry group Space Canada. SpaceQ spoke with Deloitte Canada’s Scott Streiner to learn more.
The report is called Reaching beyond: A $40 billion Canadian space economy by 2040 and is available for free at the link in this sentence. Deloitte developed the report in collaboration with Space Canada, an industry advocacy group aiming to increase the reach of space technology and services in Canada and internationally.
Some details on the report were first shared at the Spacebound conference on October 18, 2023 but it was only earlier this week the full report was made available publicly.
This report is high-level guidance for Canadian industry. At 19 pages it does not provide a lot of information about implementation, or the mathematics behind their estimates as to how industry could grow from an estimated $5.5 billion industry as of 2019 to $40 billion in 2040 (in 16 years), but it does hit on some themes of note.
Aside from continuing Canada’s traditional focuses on the exploration side in robotics, space medicine, food and mining/energy, the report calls for several new areas in which Canada can invest money in the utilization sector.
Satellites and ground stations is the first, building on the Telesat Lightspeed broadband program that may launch satellites later in the 2020s if current timelines hold. The second is downstream use of satellite communication services and Earth observation in areas in which Canada is already a deep expert, including climate change, precision agriculture, disaster response and so forth. The third is maintenance and protection of satellite infrastructure, in areas like in-space manufacturing that would build on Canada’s robotic and manufacturing sectors.
The report also highlights several general ways in which space industry could be improved, with three coming into particular focus in Deloitte’s messaging to reporters. The first is strengthening governance, which calls for an “integrated national body” to advise on Canada’s policies and programs. (Canada used to have a Space Advisory Board with industry participation, but that was closed around the time the pandemic began.)
The second is “modernizing the legal framework,” which refers to creating a more “clear regulatory framework” for Canadian space activities. As the recent launch discussion has shown, Canada must consult with numerous groups and departments before launching any rocket from Canadian soil. The Liberals have pledged to streamline this process, but the announcement was a year ago and we may not get a new update now until post-budget.
The third is “expanding collaboration,” which to be fair the Canadian space groups already do in large form. The Canadian Space Agency often shares budget and resources with other department to gain money, expertise and strength in promoting programs for satellites – the Radarsat series being one of them, as it draws in environmental and defense concerns. But the Deloitte report calls for more: a “virtual platform” allowing for researchers and companies to work together, as well as reducing the costs of government labs and testing facilities for early-stage space companies.
To get more clarity on what this report means ahead of the 2024-25 budget cycle, SpaceQ spoke with Scott Streiner, senior advisor at Deloitte Canada, and primary author of the report.
SpaceQ: Do we still need a new space strategy with the new announcements and if so, what specifically is required for industry to act?
Streiner: Recent announcements (including support for Telesat Lightspeed, Canada’s role in Artemis, and the funding commitment to Radarsat+) were important steps forward, but a coherent, focused, and well-executed national space strategy would reinforce and build on this momentum. By identifying priority areas in which Canada has comparative advantages and specific needs – and is prepared to commit funding – such a strategy will give increased confidence to private sector players around R&D and investment decisions.
SpaceQ: Industry may be looking for measurable milestones on some of those big announcements of late. How quickly does industry need information to pivot and what information would be useful?
Streiner: In general, governments and companies are moving much more quickly to develop and deploy new space assets and services than was the case in the past. This reflects both the rapid development of technologies and rising ambitions and competition. To keep pace, Canada needs to prioritize efficient regulatory reform and procurement decisions that help spur innovation and the growth of our national space sector.
SpaceQ: The 2024-5 budget cycle is coming up in a few weeks with the government of Canada. What can we expect from that in terms of funding and direction?
Streiner: Budget decisions are, of course, rarely shared before the Minister of Finance tables the Budget in the House of Commons, so we don’t know what might be included with respect to the national space program. And we recognize that Canada has entered a period of fiscal restraint. That said, a commitment to move Canada’s public investments in space to the G7 average, relative to GDP (gross domestic product), would be a good place to start.
SpaceQ: How can industry make themselves more resilient outside of government funding, in a tighter fiscal environment? Would partnerships with U.S. companies or similar help?
Global partnerships are certainly one way of creating greater financial resilience, along with access to a wider array of talent and intellectual property. But so is deeper collaboration within the Canadian space ecosystem, including partnerships between companies, academia, and government, and contracting arrangements that foster entrepreneurship, innovation, and a strong domestic supply chain for space technologies and components.
This interview has been edited for clarity.
Browse or download the Reaching beyond: A $40 billion Canadian space economy by 2040 report.