The Canadian aerospace industry generated $33.1 billion in GDP and supported 218,700 jobs in 2025, according to the latest State of Canada’s Aerospace Industry Report. Released jointly by the Aerospace Industries Association of Canada (AIAC) and Innovation, Science and Economic Development Canada (ISED), the data points to a highly export-driven market.
The report details notable research and development (R&D) investments. The report states that industry invested over $1.8 billion in R&D over the past year. This sustained investment kept aerospace at the top of Canadian manufacturing for R&D intensity, coming in at 4.5 times the national manufacturing average.
Export activity remains the engine of the sector. Over 70% of manufacturing revenues are exported, translating to $28.2 billion across more than 170 countries. Over half of these exports are directly tied to global supply chains. While Canada remains a top-five global player in civil flight simulators, engines, and aircraft, the report points to a distinct ongoing push to diversify and grow the defence aerospace segment.
This diversification is particularly relevant for the space industry. Defence aerospace is increasingly intertwined with space capabilities, from low-Earth orbit satellite constellations to remote sensing and secure communications. As the government prioritizes sovereignty and capability, the $1.8 billion R&D spend provides the necessary infrastructure for domestic companies to compete for complex civil and military space contracts.
As global competition accelerates in the space domain, industry advocates argue that piecemeal support is no longer sufficient to retain top engineering talent or secure major international partnerships.
“The latest State of Canada’s Aerospace Industry report confirms that Canada’s aerospace industry continues to compete and deliver on the world stage,” said Mike Mueller, President and CEO of AIAC. “But Canada’s aerospace advantage is not something to be taken for granted. It is why we need a national industrial aerospace strategy, to make sure this momentum continues.”