As SpaceX eyes $2 trillion IPO, Canadian Space Agency reveals the state of our domestic space economy with some stellar gains tainted by the dark side of the moon
The highly-anticipated IPO filing by Elon Musk’s SpaceX, which could see the company reach a US$2 trillion valuation, has likely sparked interest in the space sector. But is Canada’s space economy in good shape to capitalize on it?
Canada's space industry posted its strongest economic output on record in 2024, contributing $3.8 billion to the country's gross domestic product, a 6.3% jump in real terms from the prior year, even as flat overall revenues and a decade-long slide in satellite broadcasting continued to weigh on the sector's top line.
The figures come from the Canadian Space Agency's annual State of the Canadian Space Sector report, now in its 28th edition and drawing on survey responses from more than 200 organizations, including companies, universities, research centers, and federal government units.
Total revenues edged down 1.2% to $5.0 billion in 2024, which the report attributes largely to broadcasting services (i.e. direct-to-home television and radio delivered by satellite) which have fallen 46% over the past decade, erasing roughly $1.2 billion in annual revenue.
But strip out broadcasting, and the picture changes dramatically with revenues from the rest of the space economy up 32% over that same 10-year span.
Non-broadcasting revenues hit $3.6 billion - the highest ever recorded for the Canadian space sector - while space systems manufacturing surged 172% compared to 2019, reaching $903 million in 2024 alone, a 50% single-year increase.
R&D spend soars
Research and development spending told an even more aggressive growth story. Business expenditures on R&D climbed 48% in a single year to $962 million, a 156% increase from 2019 and a new all-time high.
Companies funded 77% of that from internal sources, with the remaining 23% coming from government grants and external contributions. The sector's manufacturing R&D intensity was 17 times higher than Canada's broader manufacturing average.
"Canada's space sector continues to deliver technologies and expertise that benefit Canadians every day. The State of the Canadian Space Sector Report demonstrates the strength of our space community and the growing importance of space to Canada's economy, innovation, and future," said Lisa Campbell, President of the Canadian Space Agency.
"For every dollar invested, the sector generates $3.30 in additional revenue," the report notes, adding that the estimate is considered conservative because projects that ceased reporting are assumed to have generated zero follow-on revenue.
Ontario retained its dominant position, accounting for 53% of national space revenues at $2.67 billion, though that figure fell 3% year-over-year and is down 17% from 2019 levels — casualties, in large part, of the broadcasting collapse. Quebec was the only major region to post revenue growth, rising 10% to $1.47 billion, driven by a 90% export increase since 2019.
Export market
The US remained by far the largest destination for Canadian space exports, representing 97% of North American export revenues.
North America as a whole took a 68% share of Canada's $2.2 billion in export revenues in 2024, and that concentration is growing. Exports to Asia fell 59% from 2019 to $139 million.
Canada's late-2025 investment of approximately CAD $664 million in European Space Agency programs — described in the report as a tenfold increase from prior commitments — could shift the export mix in the years ahead, potentially opening procurement opportunities and collaborative R&D with European partners.
Labour market
Direct employment reached 14,622 jobs, another record, up 4% from the prior year and 24% since 2019.
Including indirect and induced employment effects, the sector supported nearly 28,000 jobs across the Canadian economy. Engineers and scientists made up 41% of the direct workforce, and 74% of employees held at least a bachelor's degree.
Roughly 43% of Canadian space companies reported unfilled positions in 2024, though that is down from a peak of 61% in 2021.
The hardest roles to fill were engineers, scientists, technicians, and marketing and sales staff. Companies dealing with shortages reported leaning on internal training, overtime, and outsourcing as stopgaps. Over the next five years, sector employers flagged software development, artificial intelligence applications, and electrical engineering as the skills most in demand.
