LONGUEUIL, QC – The Canadian Space Agency (CSA) today released the State of the Canadian Space Sector Report 2025, detailing the economic performance of the industry based on data collected from the 2024. The report shows an industry in transition: while total sales remain flat, this hides a large surge in R&D spending and a shifting export market.
During a sneak peak presentation at the Space Canada Horizons conference earlier this week summarizing the findings, Shazmin Kanji, Chief Economist for the Canadian Space Agency, detailed both the growth areas and the mitigating factors within the industry’s economic profile. “The space sector contributed $3.8 billion to Canada’s GDP, which is an all-time high,” Kanji noted.
Economic impact and workforce growth
The sector’s overall contribution to Canada’s Gross Domestic Product (GDP) reached $3.8 billion in 2024. This represents a real GDP growth of 6.3% compared to the previous year, and a 15.4% increase over a five-year period dating back to 2019.
Employment figures also demonstrated an upward trajectory.
- The direct space sector workforce grew to 14,622 jobs in 2024, representing a 4.0% increase from the previous year.
- Over the five-year trend (2019–2024), direct employment within the space sector expanded by 24%.
- The broader economic impact of the industry supported more than 28,000 jobs in the Canadian economy, factoring in direct, indirect, and induced employment.
- The workforce remains highly specialized, with 72% of roles occupying Science, Technology, Engineering, and Mathematics (STEM) positions.
The revenue divergence
Total revenues for the Canadian space sector experienced a minor contraction, decreasing by 1.2% year-over-year to $5.0 billion in 2024. This follows a period of relatively flat top-line revenue, which was reported at $5.1 billion for the 2023 operating year.
This stagnation at the macro level is primarily attributed to the ongoing contraction of the legacy satellite broadcasting sector. As Kanji noted in the CSA’s presentation: “SATCOM continues to be the largest revenue generator in the sector, though it’s been slowly decreasing, while space exploration, Earth observation, and navigation have seen meaningful growth over the same time”.
When broadcasting revenues are excluded from the dataset, the core space economy demonstrates a different trajectory.
- Non-broadcasting revenues reached a record $3.6 billion in 2024, an increase of 4% from the previous year.
- Revenues in the upstream segment grew to $1.48 billion, propelled by a 172% increase in space systems manufacturing since 2019.
Addressing this structural shift, Kanji stated, “Now, this push and pull is essentially limiting the growth of the sector from a revenue perspective, and this is expected to continue in the short term”.
Record R&D investments
The most pronounced metric of growth detailed in the 2025 report is the increase in Business Expenditures on R&D (BERD).
- BERD increased by 48% year-over-year, rising from $650 million in 2023 to $962 million in 2024.
- Over the five-year period from 2019 to 2024, BERD has increased by 156%.
- The R&D intensity for the space manufacturing sub-segment was 17 times higher than the average for the broader Canadian manufacturing sector.
- This corporate investment yielded 413 reported inventions and 113 registered patents in 2024.
Export markets and five-year trends
The report details a shifting export market over the past five years. In 2024, domestic revenues accounted for 57% ($2.85 billion) of total revenues, while exports accounted for the remaining 43% ($2.18 billion).
Since 2019, the Canadian space sector has become increasingly reliant on the United States market.
- North America remains the primary destination, capturing 68% of all Canadian space exports.
- Export revenues to North America increased to $1.48 billion in 2024.
- Conversely, exports to Europe—Canada’s second-largest market—decreased to $393 million.
- Over the five-year trend (2019–2024), exports to Asia declined by roughly 59%, falling from $337 million to $139 million.
The CSA notes that a recent Canadian investment of approximately $664.6 million in European Space Agency (ESA) programs is anticipated to provide Canadian organizations with increased access to European procurement opportunities, potentially impacting future export trends into that region.
While the 2025 report highlights the Canadian space sector’s deep reliance on the United States for export revenues, this economic interconnectedness exists alongside broader, ongoing trade difficulties between the countries. However, it should be noted that the Canadian space industry remains insulated from some of these immediate pressures, as the sector is currently exempt from cross-border tariffs.