State of Canada's Aerospace Industry

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Features of Report

 

The Report Context

  • The report is a partnership:
    • Multi-year collaborative analytics agreement with the Aerospace Industries Association of Canada (AIAC) and Innovation, Science and Economic Development Canada (ISED)
  • The report is fact-based:
    • Foundational data sourced from government agencies and international independent subject matter experts and reflects revisions and updates
    • Economic impact modelsFootnote 1 and innovation indicators informed by experts from the Organisation for Economic Co-operation and Development (OECD) and Statistics Canada
  • Statistical overview of Canadian aerospace industry activities in 2024Footnote 2, based on the most recent data available:
    • Focus on the industry’s recovery from the COVID-19 pandemic
    • Comparative analysis from 2019 to 2024, subject to data availability
Footnote 1

See Annex 1 for detailed methodology principles and Annex 2 for a list of the main activities associated with Canadian aerospace manufacturing and maintenance, repair & overhaul (MRO) services.

Return to footnote 1 referrer 

2022 is the latest available year for Canadian aerospace defence segment data.

Return to footnote 2 referrer 


Economic Impact

In 2024, the Canadian aerospace industry contributed $34.2B to GDPFootnote 3 and 225,000 jobs to the Canadian economyFootnote 4

Figure 1: Aerospace Industry Contribution to GDP, 2024

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Figure 1: Aerospace Industry Contribution to GDP, 2024
  Contribution to GDP
(Billions of Dollars)
  2024
Total $34.2B
Aerospace Industry $15.6B
Canadian Suppliers to the Aerospace Industry $11.3B
Consumer Spending by Associated Employees  $7.3B

Figure 2: Aerospace Industry Contribution to Jobs, 2024

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Figure 2: Aerospace Industry Contribution to Jobs, 2024
  Contribution to Jobs
(Thousands of Employees)
  2024
Total 225.0K
Aerospace Industry 92.5K
Canadian Suppliers to the Aerospace Industry 81.8K
Consumer Spending by Associated Employees  50.7K
Footnote

Gross Domestic Product (GDP) is the total unduplicated value of the goods and services produced in an industry, country, or region during a given period. GDP better represents activity that occurs within Canada, in contrast to revenues, which include R&D, employment, and sales from outside of Canada.

Return to footnote 3 referrer 

See Annex 1 for detailed methodology principles and Annex 4 for a comparative economic impact analysis of Canadian aerospace manufacturing and MRO services in 2024.

Return to footnote 4 referrer 

 

Employment Trends

In 2024, the Canadian aerospace industry reached 99.8% of pre-pandemic direct employment levelsFootnote 5.

Figure 3: Canadian Aerospace Industry Direct Employment Index, 2019–2024

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Canadian Aerospace Industry Direct Employment Index, 2019–2024
  2019 2020 2021 2022 2023 2024
Aerospace Manufacturing 60,000 57,500 54,400 56,200 56,600 57,700
Aerospace MRO 32,700 26,400 25,600 29,400 32,300 34,800
Total 92,700 83,900 80,000 85,600 88,900 92,500
Footnote

Canadian aerospace manufacturing includes production of aircraft (airplanes, spacecraft, unmanned aerial systems/vehicles, balloons, and parachutes), helicopters, flight simulators, engines, landing gears, avionics, and other parts and components. See Annex 2 for a list of the main activities associated with Canadian aerospace manufacturing and MRO services and Annex 3 for a comparative analysis of Canadian aerospace industrial indicators from 2019 to 2024.

Return to footnote 5 referrer 

 

Regional Breakdown

Between 2023 and 2024, all regions maintained their relative employment shares across the Canadian aerospace manufacturing and MRO services sectorsFootnote 6

Figure 4: Share of Canadian Aerospace Industry Employment by Region, 2024

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Share of Canadian Aerospace Industry Employment by Region, 2024
  Manufacturing MRO
Total 62% 38%
Quebec 61% 20%
Ontario 23% 35%
Western and Northern Canada 12% 39%
Atlantic Canada 4% 6%
Footnote

See Annex 2 for a list of the main activities associated with Canadian aerospace manufacturing and MRO services and Annex 5 for a comparative analysis of the share of Canadian aerospace industry employment by region from 2023 to 2024.

Return to footnote 6 referrer 

 

Employment Characteristics

In 2024, the Canadian aerospace manufacturing workforce was innovation-focused and earned close to 25% more than the Canadian manufacturing average

Figure 5: Aerospace Manufacturing Employment
by Occupation Type, 2024

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Figure 4: Aerospace Manufacturing Employment
by Occupation Type, 2024
Production Workers 53%
Corporate Functions 19%
STEM Employees 28%

Figure 6: STEM Intensity, 2024

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STEM Intensity, 2024
Aerospace Manufacturing 28%
Manufacturing Average 12%
  • In 2024, aerospace manufacturing was 2.3X more STEM-intensiveFootnote 7 than the broader Canadian manufacturing industry
  • In 2024, aerospace manufacturing employees earned an average yearly salary of over $85,000

 

Footnote

Science, technology, engineering, and mathematics (STEM). Industry-level STEM intensity is measured as the ratio of employees in STEM-related occupations in each industry or sector relative to its total employment.

Return to footnote 7 referrer 

 

Innovation

In 2024, the Canadian aerospace industry maintained its #1 R&DFootnote 8 ranking among all Canadian manufacturing industries

Figure 7: R&D Intensity, 2024

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R&D Intensity, 2024
Aerospace Manufacturing Manufacturing Average
10.7% 3.8%
  • In 2024, aerospace manufacturing invested more than $1.2B in R&D, returning to pre-pandemic levels
  • In 2024, aerospace manufacturing was 2.8X more R&D-intensive than the broader Canadian manufacturing industry

 

Footnote

Research and development (R&D) is measured in terms of the dollar value of R&D activity. Industry-level R&D intensity is measured as the ratio of R&D expenditures by a given industry or sector relative to its GDP contribution. See Annex 3 for a comparative analysis of Canadian aerospace R&D spending from 2020 to 2024.

Return to footnote 8 referrer 

 

Civil Aerospace Global Rankings

In 2024, Canada rankedFootnote 9 in the global top 5 across civil flight simulators, engines, and aircraft segmentsFootnote 10

Figure 8: Canada’s Civil Aerospace Industry Rankings, 2024

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Canada's Civil AerospaceIndustry Rankings, 2024
Overall Rank Segment Sub-segment Rank
#1 Civil flight simulators #1 Civil flight simulators
#3 Civil engines #1 Turboprop engines
#2 Helicopter engines
#3 Turbofan engines
#4 Civil aircraft  #2 Business jets
#3 General aviation
#4 Large jets
#4 Helicopters
Footnote

Rankings are based on the dollar value of final production.

Return to footnote 9 referrer 

General aviation includes all aircraft not operated by commuter or airline service providers and excludes business jets and helicopters.

Return to footnote 10 referrer 

 

Aerospace Defence

In 2022Footnote 11, the Canadian aerospace defence segment was composed of a diversified mix of goods and services

Figure 9: Aerospace Defence Segment Revenues by Goods and Services Category, 2022

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  • In 2022, Canadian aerospace defence revenues represented 17% of overall aerospace revenues, compared to 13% in the pre-pandemic periodFootnote 12
    • This growth was driven by the “Aircraft, Helicopters and/or Components,” and “MRO and Related Services” categories
Description of figure 9
Aerospace Defence Segment Revenues by Goods and Services Category, 2022
MRO and Related Services 38%
Aircraft, Helicopters and/or Components 27%
Mission Systems 27%
Simulation Systems 4%
Unmanned Aerial Systems/Vehicles 3%
Space Systems 1%
Footnote

2022 is the latest available year for Canadian aerospace defence segment data.

Return to footnote 11 referrer 

Based on the latest (2018) findings of the Canadian Defence, Aerospace, Marine and Cybersecurity Industries Survey before the onset of the pandemic. See Annex 6 for a detailed breakdown of Canadian aerospace defence industry revenues by goods and services category from 2018 to 2022.

Return to footnote 12 referrer 

 

Export Products

In 2024, close to 50% of aerospace manufacturing exports were supply chain-related

Figure 10: Canadian Aerospace Industry Exports by Product Category, 2024

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Canadian Aerospace Industry Exports by Product Category, 2024
Final Products 51%
Helicopters 4%
Flight Simulators 6%
Aircraft 41%
Aerospace Supply Chain 49%
Engines & Engine Parts 65%
Landing Gear Systems & Components 11%
Other Parts & Components 24%
 

Key Findings

In 2024, the Canadian aerospace industry:

  • Contributed $34.2B to GDP and 225,000 jobs to the Canadian economy
  • Employed a workforce that was innovation-focused and earned close to 25% more than the Canadian manufacturing average
  • Maintained its #1 R&D ranking among all Canadian manufacturing industries
  • Ranked in the global top 5 across civil flight simulators, engines, and aircraft segments
  • Featured a diversified and growing aerospace defence segment
  • Actively participated in global supply chains
 

 Annexes

Annex 1: Economic Impact Detailed Methodology Principles

  • Aerospace industry foundational data is compiled from government agencies, such as Statistics Canada and the Canada Revenue Agency, and international independent subject matter expert databases, with firm-level adjustments to include key manufacturers of avionics, flight simulators, and space-related products as well as providers of aerospace MRO services.
  • ISED’s model measures Canada’s economic structure through Statistics Canada’s latest (2021) Input-Output (I/O) economic impact multipliers.
    • Aerospace activities have been linked to the closest related specific economic impact multiplier.
      • BS336400          Aerospace product and parts manufacturing
      • BS488100          Support activities for air transportation
  • Total economic impact includes industrial activities performed by the Canadian value chain, which is specifically comprised of the aerospace industry (direct economic impact from enterprises for which aerospace is the main activity) and their Canadian suppliers (indirect economic impact from enterprises for which aerospace is not the main activity), and consumer spending by associated employees (induced economic impact) across the Canadian economy.
    • GDP impact is reported on an annual basis.
    • Jobs impact is reported on an annual basis and is measured in terms of full-time equivalent (FTE) employment.
    • Jobs cannot be additive as they are maintained for an extended period after creation.
    • Economic impact estimates are reported at the national level and cannot be broken down at the regional level.
    • Economic impact estimates are not comparable to older estimates reported in previous publications as past foundational data from government agencies and international subject matter experts are regularly revised and updated.
  • All totals are in Canadian dollars.
 

Annex 2: Main Activities Associated with Canadian Aerospace Manufacturing and MRO Services

Aerospace Manufacturing

Main activities:

  • Aircraft assemblies, subassemblies and parts
  • Aircraft engines and engine parts
  • Aircraft fuselage, wing, tail and similar assemblies
  • Tail and wing assemblies and parts (empennage)
  • Flight simulators
  • Aerospace product prototypes
  • Space systems
  • Telecommunication satellites and components
  • Avionics
  • Helicopters, propellers and parts

Aerospace MRO ServicesFootnote 13

Main activities:

  • Aircraft heavy maintenance, servicing and repairing
  • Aircraft engines maintenance, servicing and repairing
  • Aircraft components and other systems maintenance, servicing and repairing
  • Aircraft line maintenance (aircraft servicing at airports – excluding sales of fuel revenues)
  • Aircraft ferrying services
  • Aircraft inspection services
  • Aircraft testing services
  • Aircraft upholstery repair
Footnote

Excludes MRO activities performed by manufacturers and airlines.

Return to footnote 13 referrer 

 

 

Annex 3: Canadian Aerospace Industrial Indicators (2019–2024)

Indicator

Sector

2019

2020

2021

2022

2023

2024

% Change
2023–2024

% Change
2019–2024

Revenues
(Billions of Dollars)

Aerospace Manufacturing

$32.7

$24.2

$23.1

$27.2

$33.5

$39.6

18%

21%

Aerospace MRO

$4.2

$3.6

$3.9

$4.7

$5.1

$5.6

10%

33%

Aerospace Total

$36.9

$27.8

$27.0

$31.9

$38.6

$45.2

17%

22%

GDP
(Billions of Dollars)

Aerospace Manufacturing

$13.1

$9.6

$9.9

$10.1

$10.6

$10.8

2%

−18%

Aerospace MRO

$4.9

$3.3

$3.4

$4.1

$4.5

$4.8

7%

−2%

Aerospace Total

$18.0

$12.9

$13.3

$14.2

$15.1

$15.6

3%

−13%

Jobs
(Thousands of Employees)

Aerospace Manufacturing

60.0

57.5

54.4

56.2

56.6

57.7

2%

−4%

Aerospace MRO

32.7

26.4

25.6

29.4

32.3

34.8

8%

6%

Aerospace Total

92.7

83.9

80.0

85.6

88.9

92.5

4%

−0.2%

R&D
(Millions of Dollars)

Aerospace Manufacturing

$1,151

$958

$991

$893

$1,086

$1,160

7%

1%

Aerospace MRO

$43

$34

$33

$38

$42

$45

7%

5%

Aerospace Total

$1,194

$992

$1,024

$931

$1,128

$1,205

7%

1%

 

Annex 4: Canadian Aerospace Industry Economic Impact (2024)

Indicator

Source of Industrial Activity

Aerospace Manufacturing

Aerospace MRO

Aerospace Industry Total

GDP Economic Impact
(Billions of Dollars)

Aerospace Industry

$10.8

$4.8

$15.6

Canadian Suppliers to the Aerospace Industry

$6.2

$5.1

$11.3

Aerospace Industry and Value Chain

$17.0

$9.9

$26.9

Consumer Spending by Associated Employees

$4.6

$2.7

$7.3

Total

$21.6

$12.6

$34.2

Jobs Economic Impact
(Number of Employees)

Aerospace Industry

57,700

34,800

92,500

Canadian Suppliers to the Aerospace Industry

40,300

41,500

81,800

Aerospace Industry and Value Chain

98,000

76,300

174,300

Consumer Spending by Associated Employees

30,500

20,200

50,700

Total

128,500

96,500

225,000

 

Annex 5: Share of Canadian Aerospace Industry Employment by Region (2023 vs. 2024)

Region

Aerospace Manufacturing

Aerospace MRO

 

2023

2024

2023

2024

Western Canada and Northern Canada

12%

12%

38%

39%

Ontario

24%

23%

35%

35%

Quebec

61%

61%

21%

20%

Atlantic Canada

3%

4%

6%

6%

 

Annex 6: Canadian Aerospace Defence Segment Revenues (2018–2022) by Goods and Services Category

Short Title

Aerospace Defence Goods and Services Category

2018

2020

2022

% Change,
2018–2022

MRO Services

Military Aircraft Maintenance, Repair, Overhaul, Modernization or Upgrade Services

$1,203,557,655

$1,339,505,777

$2,079,143,232

73%

Aircraft, Helicopters, and/or Components

Aircraft Fabrication, Structures and Components

$738,691,929

$1,416,086,478

$1,445,924,277

96%

Mission Systems

Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems and Related Components

$843,888,515

$994,181,470

$1,071,151,042

27%

Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

$516,207,452

$377,610,671

$375,868,525

-27%

Simulation Systems

Simulation Systems for Aircraft

$324,694,686

$235,430,669

$238,783,900

-26%

Unmanned Aerial Systems/Vehicles

Unmanned Aerial Systems/Vehicles (UAS/V) and Components

$87,304,058

$63,556,985

$168,930,867

93%

Space Systems

Military Systems Deployed in Space, Space Launch Vehicles, Land-based Systems for the Operation, Command and Control of Space Launch Vehicles or Systems Deployed in Space and Related Components

$81,824,130

$70,704,636

$73,943,779

-10%

Total Revenues

$3,796,168,425

$4,497,076,686

$5,453,745,622

44%

 

Data Sources

  1. Economic Impact
    1. ISED estimates based on latest revised data from Statistics Canada Table 36-10-0434-03 (2019–2024), 2025
    2. ISED estimates based on latest revised data from Statistics Canada Table 14-10-0220-01 (2019–2024), 2025
    3. ISED economic model estimates based on Statistics Canada Table 36-10-0594-01 (2021), 2025
  2. Employment Trends
    1. See 1(b)
  3. Regional Breakdown
    1. Statistics Canada Table 14-10-0202-01 (2023–2024), 2025
  4. Employment Characteristics
    1. Statistics Canada’s Labour Force Survey (2024), 2025
    2. Statistics Canada National Occupational Classification (NOC) 2021 Version 1.0, 2025
    3. See 1(b)
  5. Innovation
    1. ISED estimates based on latest revised data from Statistics Canada Table 27-10-0333-01 and firm administrative data (2019–2024), 2025
    2. See 1(a-b)
  6. Civil Aerospace Global Rankings
    1. FlightGlobal Civil Simulator Census 2021, 2025
    2. Forecast International Dynamic Workbook for Custom Charts (Civil Aircraft, Rotorcraft, Aviation Gas Turbines) (2024), 2025
    3. Teal Group Market History (2024), 2025
  7. Aerospace Defence
    1. Statistics Canada’s Canadian Defence, Aerospace, Marine and Cybersecurity Industries Survey (2018, 2022), 2025
  8. Exports Products
    1. S&P Global, Global Trade Atlas (2024), 2025
  9. Annex 2
    1. Statistics Canada North American Industry Classification System (NAICS) Canada 2022 Version 1.0, 2025
  10. Annex 3
    1. ISED estimates based on latest revised data from Statistics Canada Table 16-10-0047-01 (2019–2024), 2025
    2. See 1(a-b)
    3. See 5(a)
  11. Annex 4
    1. See 1(a-c)
  12. Annex 5
    1. See 3(a)
  13. Annex 5
    1. See 7(a)