Canada’s Commercial Space Sector

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The State of Canada’s Space Economy

Canada’s space sector is in a period of growth and strategic realignment. Following the global pandemic, the industry has shown economic recovery, an expanding workforce, and a strategic direction from the federal government. As of 2025, the sector is building on its strengths in robotics and satellite communications to pursue opportunities in the global space economy, from lunar exploration to climate change monitoring. The latest comprehensive data, reflecting the 2022 fiscal year, provides a baseline for understanding the industry’s current trajectory.

The economic landscape shows growth in key metrics. In 2022, the Canadian space sector generated total revenues of $5.0 billion, a 3.1% increase from the previous year. This growth was largely driven by international markets, with exports increasing by 12% to reach $2.0 billion. Domestic revenues declined by 2% to $3.0 billion but have largely stabilized since the pandemic. The sector contributed an estimated $3.2 billion to Canada’s Gross Domestic Product (GDP) in 2022, an increase of 19% since 2018. The space sector has a GDP multiplier of 1.93, which means that for every dollar of GDP generated directly by a space company, an additional 93 cents is generated in its supply chain and through the consumer spending of its employees. While the compound annual growth rate of revenues between 2018 and 2022 was -2.86%, the upward trend seen in 2022 signals a return to a positive growth trajectory.

Workforce and Human Capital

Human capital is a key component and a challenge for Canada’s space sector. The industry’s expansion has fueled demand for skilled talent, leading to job creation. In 2022, the space workforce grew by 8.6%, reaching 12,624 direct jobs. These positions, in turn, support an additional 12,612 jobs throughout the wider Canadian economy, bringing the total number of jobs supported by the sector to over 25,000.

These are overwhelmingly high-value positions. An estimated 67% of the direct space workforce is employed in Science, Technology, Engineering, and Mathematics (STEM) fields. Furthermore, 68% of the workforce is classified as Highly Qualified Personnel (HQP), meaning they hold at least a bachelor’s degree. This concentration of expertise has created a competitive labor market. Organizations across the industry have increasingly highlighted labor shortages, particularly for specialized engineers, scientists, and technicians.

This demand for human capital presents a potential bottleneck for future growth. National programs like the development of Canadarm3 for the Lunar Gateway, the construction of Canada’s first lunar rover, and the deployment of the Telesat Lightspeed constellation all depend on a steady supply of talent. If this demand outpaces the supply, these projects could face delays and increased costs. This context makes government and academic initiatives designed to foster the next generation of space professionals a strategic component of Canada’s long-term space ambitions.

Innovation and R&D Investment

The space sector is characterized by innovation, which is reflected in its commitment to research and development. In 2022, R&D expenditures continued to increase, reaching $593 million, an 8% increase over the previous year and a 66% increase since 2018. This increase in R&D spending is primarily driven by the private sector, particularly by small and medium-sized enterprises (SMEs), which are developing new technologies for the downstream market for space-based applications and data.

Government Strategy and Key Initiatives for 2025

The Canadian government has signaled its commitment to the space sector with a clear strategy and a high level of investment. The Canadian Space Agency’s planned spending for the 2025–26 fiscal year is set at $834 million, with the majority allocated to its core “Canada in Space” programs. This funding is directed toward a set of national priorities designed to leverage Canada’s established strengths while entering new areas.

A central pillar of this strategy is a focus on lunar exploration. A portion of the CSA’s budget is dedicated to developing Canadarm3, an AI-enabled robotic system that represents Canada’s contribution to the NASA-led Lunar Gateway. This contribution secures Canada’s place in the Artemis program and provides opportunities for Canadian astronauts, science, and technology on and around the Moon. This includes funding for the development of Canada’s first lunar science rover and a future, larger lunar utility vehicle.

Earth observation remains another key priority, with the government ensuring data continuity through the RADARSAT+ initiative. This program involves developing a replacement for the current RADARSAT Constellation Mission and designing a next-generation system to follow. New missions like WildFireSat, designed to provide daily monitoring of all active wildfires across Canada, and the Arctic Observing Mission, are being developed to address specific national challenges like climate change and northern sovereignty.

Human spaceflight also continues to be a part of the national program. CSA astronaut Jeremy Hansen is slated to be part of the Artemis II mission, the first crewed flight to the Moon in over 50 years, while astronaut Joshua Kutryk is preparing for a long-duration mission aboard the International Space Station. These missions are supported by a suite of funding programs designed to engage the commercial sector. Programs like the Space Technology Development Program (STDP), the Lunar Exploration Accelerator Program (LEAP), and the smartEarth initiative are the primary vehicles through which the government’s strategic objectives are translated into contracts and contributions for Canadian companies. These programs are structured to fuel innovation within SMEs, build sovereign capabilities in areas like robotics and satellite data, and position Canadian industry to compete in the global space market.

Launch Services and Infrastructure

For decades, Canada has been a space-faring nation without the ability to launch its own satellites into orbit. Canadian-built spacecraft have relied on launch pads in other countries. As of 2025, an effort to develop sovereign launch capabilities is underway, led by companies building the rockets and the ground infrastructure needed to create a domestic path to orbit. This new launch sector is a foundational element for a self-sufficient national space ecosystem.

Maritime Launch Services: Building Canada’s Gateway to Orbit

Maritime Launch Services (MLS) is developing Spaceport Nova Scotia. Founded in 2016 and headquartered in Halifax, MLS is a publicly traded company building and operating Canada’s first commercial, orbital launch complex. The chosen site, located near Canso, Nova Scotia, was selected for its advantageous position on the Atlantic coast, which provides clear trajectories for launching satellites into a wide range of orbits, including polar and sun-synchronous orbits. The company, led by President and CEO Stephen Matier, broke ground on the facility in September 2022.

MLS’s business model is to act as a spaceport operator, providing the infrastructure and services for various rocket companies to launch their payloads. The company’s offerings cater to dedicated single-satellite launches, rideshare missions carrying multiple small satellites, and campaigns to deploy entire constellations.

The company’s original business plan was centered on using the Ukrainian-built Cyclone-4M rocket. This plan was altered by the 2022 Russian invasion of Ukraine, which created uncertainty in the supply chain for the vehicle. In the third quarter of 2024, MLS terminated its agreement for the Cyclone-4M. In August 2025, the company announced a partnership with Reaction Dynamics, a Montreal-based rocket developer. This agreement will see Reaction Dynamics’ Aurora-8 rocket conduct its first orbital launch attempt from Spaceport Nova Scotia on or before the third quarter of 2028. This deal created a path toward a fully sovereign Canadian launch solution.

NordSpace: Vertically Integrated Ambitions

NordSpace is pursuing a vertically integrated model, developing an entire end-to-end launch system in-house. The company’s roadmap includes its own family of launch vehicles, the Tundra (500 kg capacity) and the larger Titan (5,000 kg capacity).

Powering these rockets will be a series of 3D-printed liquid-fueled engines – named Hadfield, Garneau, and Bondar – that are designed, manufactured, and tested in Canada. To complete the ecosystem, NordSpace is also developing its own spaceport, the Atlantic Spaceport Complex (ASX) in Newfoundland and Labrador, with initial flights planned to begin in 2025. This strategy, which also includes the development of a proprietary satellite bus called Athena, aims to provide low-cost and rapid access to orbit by controlling every step of the process.

Reaction Dynamics: The Engine of Domestic Launch

Reaction Dynamics is the Montreal-based firm developing the technology for Canada’s first sovereign orbital launch. Known previously as Laboratoires Reaction Dynamics, the company specializes in advanced rocket propulsion. Its Aurora-8 launch vehicle is set to become the first client for orbital missions from Spaceport Nova Scotia.

The pathfinder launch agreement signed with MLS in August 2025 represented a closing of the loop for Canada’s domestic launch ambitions. The deal, which included a $1.7 million investment from Reaction Dynamics into MLS, solidified a partnership that will see a Canadian-made rocket lift off from Canadian soil.

Satellite Communications and Operations

Satellite communications is the largest segment of Canada’s space sector, accounting for 75% of the industry’s revenues in 2022. This segment is composed of established global companies and newer startups. These companies provide broadband services to remote Canadian communities and are developing future space-based communication networks.

Telesat: A Canadian Titan Reaching for Lightspeed

Telesat is a global satellite company with a long history in Canada’s space sector. The company was established by an Act of Parliament on May 2, 1969, as a Crown corporation to provide satellite communications across Canada. Now a publicly traded company headquartered in Ottawa and led by CEO Daniel S. Goldberg, Telesat operates a large fleet of geostationary (GEO) satellites that provide connectivity services to broadcast, telecom, and government customers worldwide. Its Anik and Nimiq satellites have been used to deliver television and internet services to rural and northern communities.

Telesat’s future is focused on Low Earth Orbit (LEO). The company is undertaking the Telesat Lightspeed project, a planned $6.5 billion LEO satellite constellation designed to deliver global broadband connectivity. The network aims to provide high-capacity, secure, and affordable internet with fiber-like speeds and low latency to enterprise, government, and mobility customers. MDA Space was selected to build the initial 198 advanced, software-defined satellites for the constellation. Telesat Lightspeed is expected to generate economic growth and create jobs. In September 2025, Telesat completed an equity distribution of its Lightspeed business.

Kepler Communications: Building the Internet for Space

Toronto-based Kepler Communications is focused on connecting space itself. Founded in 2015, Kepler has grown into a vertically integrated company with its own in-house satellite production facility. Led by CEO and co-founder Mina Mitry, Kepler is building an “Internet for Space”.

The company’s core technology is The Kepler Network, a LEO constellation of satellites designed to act as a real-time, optical data backbone for other spacecraft. Many satellites can only send data back to Earth when they pass over a ground station, creating a downlink bottleneck. Kepler’s network addresses this problem by using optical laser links to act as in-orbit data relays. A customer’s satellite can offload its data to the Kepler Network, which then routes the data to the ground. This service provides on-demand, high-bandwidth data transfer at speeds of 2.5 Gbps and is complemented by on-orbit edge computing capabilities.

Kepler’s primary customers are other satellites in orbit. The company’s network is designed to serve the defense and intelligence, Earth observation, and future human spaceflight markets. The company has launched 23 satellites, has proven its SDA-compatible optical technology, and has secured contracts with international partners, including the European Space Agency and the US Space Development Agency.

Other Key Players in Satellite Operations

The satellite operations ecosystem in Canada includes other specialized companies. Aireon, which has a Canadian division, operates a global air traffic surveillance system. Its technology uses receivers hosted on the Iridium NEXT LEO satellite constellation to track aircraft via their Automatic Dependent Surveillance-Broadcast (ADS-B) signals, providing real-time visibility over oceans and remote regions.

Another key player is exactEarth, now part of Spire Global. It is a leader in space-based maritime data services. The company uses satellites to detect Automatic Identification System (AIS) signals from ships, creating a global picture of maritime traffic used for safety, security, and environmental monitoring.

Earth and Space Observation

Canada’s geography makes Earth observation a national priority. This has fostered a commercial sector that uses satellites to provide data for environmental monitoring and national security. This segment, accounting for 7% of the space economy’s revenues, is characterized by a focus on developing specialized, niche data products.

GHGSat: Pinpointing Greenhouse Gas Emissions

Montreal-based GHGSat uses high-resolution satellites to monitor greenhouse gas emissions from space. Founded in 2011 and led by President Stephane Germain, GHGSat has established itself as a leader in this field.

The company’s core technology is a patented sensor capable of detecting methane emissions and attributing them directly to individual industrial facilities from an altitude of 500 km. This is a more precise method than previous technologies that measured atmospheric concentrations over large regions. GHGSat designs, builds, and operates its own constellation of 12 small satellites, beginning with its demonstration satellite “CLAIRE” launched in 2016. This constellation provides data to clients in the oil and gas, coal mining, and waste management sectors, allowing them to identify and mitigate leaks. The data is also used by governments and financial institutions to monitor environmental performance. In 2023, GHGSat’s constellation detected emissions equivalent to 378 megatonnes of carbon dioxide. To complement its satellite data, the company also offers an airborne monitoring service, DATA.AIR, using the same sensor technology on aircraft, and provides analytics through its SPECTRA data platform.

NorthStar Earth & Space: A Sentinel for Orbital Sustainability

NorthStar’s “Skylark” constellation will monitor near-Earth orbits from space using dedicated optical sensors. This space-based vantage point offers more persistent and precise tracking of satellites and debris than ground-based telescopes and radars. The company provides commercial services built on this data, including object tracking, conjunction prediction, and collision avoidance maneuver recommendations. Its customers include commercial satellite operators, governments, and insurance companies. While its primary focus is on space sustainability, NorthStar is also developing an Earth observation platform that will use hyperspectral and infrared data to support the sustainable management of terrestrial resources.

Wyvern Space: Revealing the Earth’s Invisible Truths

Wyvern Space, from Edmonton, Alberta, was founded in 2018 by four University of Alberta graduates. Led by CEO Chris Robson, Wyvern focuses on hyperspectral imaging. This remote sensing technique captures images across hundreds of narrow spectral bands, which can reveal the chemical composition and physical properties of materials on the ground.

Wyvern operates its “Dragonette” constellation of small satellites, which collect high-resolution commercial hyperspectral data from LEO. This information has applications in agriculture, forestry, and mining. Wyvern’s business model is to be a data provider. The company offers its imagery directly to data scientists and through an Open Data Program, allowing innovators to develop their own applications.

Other Innovators in Observation

The Canadian observation sector includes other companies. SpaceAlpha, based in Vancouver, is developing an Earth observation system using SAR-XL satellite technology. Synthetic Aperture Radar (SAR) can see through clouds and at night, and SpaceAlpha’s technology is designed to provide near real-time data for security, agriculture, and environmental monitoring. Pacific Geomatics, established in 1994, acts as a vendor-agnostic consultant, helping clients find the appropriate satellite imagery solution for their project needs.

Space Robotics, Exploration, and Advanced Systems

Canada’s reputation in the space sector was established in robotics with the Canadarm and Canadarm2. This heritage is the foundation for a new generation of robotic systems for the Moon and beyond. This sector is led by Canada’s largest space company and a growing ecosystem of specialized firms.

MDA Space: The Architect of Canada’s Robotic Legacy

MDA Space is Canada’s largest space technology developer and manufacturer, with over 3,800 employees across Canada, the US, and the UK. Founded in 1969 and headquartered in Brampton, Ontario, the publicly traded company, led by CEO Mike Greenley, is a prime contractor with three core business areas: Geointelligence, Satellite Systems, and Robotics & Space Operations.

The Robotics & Space Operations division built the original robotic arm for the Space Shuttle and the Mobile Servicing System – comprising Canadarm2 and the Dextre robot – that assembled and maintains the International Space Station. This experience has positioned MDA as the prime contractor for Canadarm3, Canada’s contribution to the NASA-led Lunar Gateway. This third-generation robotic arm will be an autonomous system, using artificial intelligence to perform maintenance, assemble station modules, and support astronauts during spacewalks in lunar orbit. MDA is commercializing its technology through the MDA SKYMAKER™ suite of robotics, designed for markets like on-orbit satellite servicing and in-space manufacturing. The company is also involved in planetary exploration, providing navigation cameras and mobility systems for the European Space Agency’s Rosalind Franklin Mars rover and partnering on the development of a human-rated Moon rover for NASA’s Artemis program.

In its Satellite Systems division, MDA is a leader in subsystems like antennas and payloads and has become a prime contractor for satellite constellations. Its MDA AURORA™ product line features software-defined digital satellites designed for high-volume manufacturing. This capability has secured contracts, including a role as the prime contractor for Globalstar’s next-generation LEO constellation and the manufacturer of the 198 satellites for Telesat’s Lightspeed network.

In Geointelligence, MDA owns and operates the RADARSAT-2 satellite, making it a large provider of space-based radar data. Its next-generation constellation, MDA CHORUS™, is scheduled to launch in mid-2026 and will combine C-band and X-band SAR satellites to offer enhanced imaging capabilities for maritime surveillance, disaster response, and environmental monitoring.

Canadensys Aerospace: Canada’s Lunar Rover Pioneer

Canadensys Aerospace, founded in 2013 and headquartered in Bolton, Ontario, is a space systems company focused on developing technologies for planetary missions, with an emphasis on the Moon. The company is led by President and CEO Christian Sallaberger.

Canadensys has developed a range of flight-ready hardware, including cameras, avionics, and robotic mechanisms designed to withstand the lunar environment. This expertise is also applied to terrestrial applications, such as the company’s RAPTOR and HAWC unmanned ground vehicles.

The company’s main project is the development of Canada’s first lunar rover. In November 2022, the Canadian Space Agency awarded Canadensys the prime contract under the LEAP program to design and build the nation’s first planetary exploration vehicle. The 42-kg science rover is scheduled to launch no earlier than 2029. It will be delivered to the Moon’s south pole region by a commercial lander to search for water ice and conduct geological analysis.

Canadensys is involved in the international lunar ecosystem. The company has delivered scientific instruments for NASA’s Lunar Vertex mission, is a supplier of imaging systems for Intuitive Machines’ commercial lunar landers, and was selected to build the instrument suite for the ILO-1 private astronomical observatory on the Moon. Along with MDA and Mission Control, Canadensys was also selected to conduct preparatory studies for Canada’s future large Lunar Utility Rover.

Component Manufacturing and Software Development

A diverse ecosystem of companies provides the foundational technologies, components, and software for the Canadian space sector. This supply chain is populated by established aerospace manufacturers and a new generation of software and AI companies. Small and medium-sized enterprises (SMEs) make up 93% of all space-related companies in Canada.

Hardware, Components, and Manufacturing

Several of Canada’s leading aerospace manufacturers have a presence in the space sector. Magellan Aerospace, with headquarters in Mississauga, designs and manufactures assemblies and components for the space market, including structures for small satellites and components for sounding rockets. Héroux-Devtek, a leader in aircraft landing gear, built the landing gear for the Apollo 11 lunar module.

International corporations also play a role through their Canadian operations. ABB Canada is a provider of optical sensors and scientific instruments for space missions. Honeywell Aerospace‘s Canadian divisions supply avionics, navigation systems, and satellite components.

Software, AI, and Mission Services

As space systems become more autonomous, software and artificial intelligence have become increasingly important. A number of Canadian companies specialize in providing the software that operates these systems.

Ottawa-based Mission Control Space Services, founded in 2015 by Ewan Reid, develops software to simplify the development and operation of space missions, particularly those involving robotics. Their Spacefarer platform is a ground control system that allows teams to operate rovers and other robotic assets remotely. The company is also developing Spacefarer AI for greater autonomy in deep-space missions. To test its software, Mission Control operates its own “moonyard,” an indoor facility that simulates lunar terrain. The company’s software is being used to support the Emirates Lunar Mission rover. Mission Control has also secured contracts from the CSA to develop AI for real-time wildfire detection from orbit and was selected alongside MDA and Canadensys to conduct studies for the future Canadian Lunar Utility Rover.

Other software and service providers include Calian, an Ottawa-based company that offers services including satellite ground system operations. NGC Aérospatiale, based in Sherbrooke, Quebec, specializes in guidance, navigation, and control (GNC) software. Waterloo-based SkyWatch is focused on the downstream data segment, building software platforms that make Earth observation satellite data easier to access and use.

The Broader Ecosystem: Research, Development, and International Players

The commercial activity of Canada’s space sector is supported by research, a supply of talent, and international partnerships. Academic institutions have become hubs of commercial activity, while the Canadian operations of major international aerospace corporations provide expertise and supply chain integration.

Space Flight Laboratory: The Small Satellite Powerhouse

The Space Flight Laboratory (SFL) is a notable force within the Canadian space ecosystem. Founded in 1998 at the University of Toronto’s Institute for Aerospace Studies (UTIAS), SFL has become a prolific builder of small satellites in Canada. While it originated in an academic setting, SFL operates with a commercial focus, delivering low-cost, high-performance “microspace” missions for a global clientele. The organization, led by Director Dr. Robert E. Zee, recently transitioned to become SFL Missions Inc..

SFL’s capability is its ability to build small satellites, ranging from 3 to 500 kg, that meet performance requirements at a lower cost than traditional missions. It provides end-to-end services, from design and manufacturing to arranging launches and conducting mission operations from its control center in Toronto. With a legacy of over 69 distinct satellites launched and more than 165 years of cumulative on-orbit experience, SFL has an extensive track record in the small satellite domain.

SFL also functions as an incubator for the Canadian space startup scene. Its model provides graduate students with hands-on experience building and operating spacecraft, creating a pipeline of skilled talent for the industry’s workforce. For startups, contracting SFL to build their first satellite is a way to de-risk their technology and business plan. SFL’s flight heritage provides a level of reliability that is attractive to investors. SFL has built satellites for startups like GHGSat and Kepler Communications, which helps them grow. As these companies mature, they become repeat customers. This commercial success, in turn, funds more student training and research at SFL.

International Corporations with a Canadian Space Presence

The Canadian space sector is also strengthened by the presence of major international aerospace and defense corporations. These companies bring global supply chains, R&D resources, and expertise to the domestic ecosystem.

Airbus Defence and Space, a global aerospace company, maintains Canadian offices and is involved in satellite manufacturing and services. L3Harris Technologies, an American defense contractor, has a Canadian presence, providing space technologies, including electronic systems and communications equipment. Thales Canada, the Canadian arm of the French multinational, is another key player, providing systems and software for the space and aeronautics industries. These companies, along with others like RTX, Collins Aerospace, and The Boeing Company, are integrated into the Canadian supply chain.

Summary

In 2025, Canada’s commercial space sector is experiencing a period of growth. It has recovered from the economic challenges of the early 2020s, with increases in revenues, GDP contribution, and employment. This is the result of a combination of a national strategy and a commercial ecosystem. The federal government, through the Canadian Space Agency’s budget, is making investments in areas of national strength and future opportunity, such as lunar exploration and Earth observation.

The industry’s competitive advantages are based on its heritage in space robotics, now being used by companies like MDA Space and Canadensys Aerospace for roles in the international return to the Moon. It continues to be a participant in satellite communications, with companies like Telesat undertaking large constellation projects while innovators like Kepler Communications build new markets for in-space data relay. A new generation of startups has achieved leadership in specialized observation niches, with companies like GHGSat, NorthStar Earth & Space, and Wyvern Space providing data to address global challenges like climate change and orbital sustainability.

The public-private partnership model is a feature of this success. Government funding through programs like LEAP and STDP acts as a catalyst that de-risks private R&D and helps SMEs scale. This has created a cycle where public investment fuels private innovation, which in turn delivers economic growth and technological solutions.

The global space economy is projected to be worth trillions of dollars in the coming decades. Canada is positioned to participate in this growth, particularly in the lunar economy and the market for space-derived data. challenges remain. The sector’s expansion has created a shortage of skilled labor, which must be addressed to sustain momentum. Companies must also navigate a complex and competitive international landscape and ensure that Canada’s regulatory framework keeps pace with technological change. The ability of Canada’s space sector to achieve its goals will depend on its capacity to sustain the innovation that has brought it to its current position.

Last update on 2025-12-19 / Affiliate links / Images from Amazon Product Advertising API