Fastest Growing Industries in Canada by Revenue Growth (%) in 2023

1. Travel Agencies in Canada

2023-2024 Revenue Growth: 28.3%

Travel agencies have struggled due to COVID-19, and the rise of internet travel booking has interfered with the core services of travel agencies. Online travel agents now play a larger role alongside traditional brick-and-mortar businesses. Most agencies suffered in 2020 as governments imposed restrictions on travel, leading revenue to fall at a CAGR of 7.7% to $1.9 billion through the end of 2023, including a 11.5% increase in 2023 alone.

This has led to an unprecedented level of cancellations. Despite the economy showing signs of recovery in 2021, the overall travelling industry continued to endure difficulties. While many countries continued vaccinating... Learn More

2. Semiconductor Machinery Manufacturing in Canada

2023-2024 Revenue Growth: 20.9%

The Semiconductor Machinery Manufacturing industry in Canada supplies capital equipment and machinery to semiconductor manufacturers that produce the necessary inputs for a range of electronic products. As with much of the domestic manufacturing sector, industry operators compete with foreign players that often have lower labour and production costs and higher productivity and manufacturing capabilities. This translates to lower-cost imports, which have continuously threatened the industry. The COVID-19 (coronavirus) pandemic is expected to support industry growth due to a global chip shortage. As a result, IBISWorld projects industry revenue will increase at an annualized rate of 47.8% to $166.3 million over... Learn More

3. Automobile Wholesaling in Canada

2023-2024 Revenue Growth: 18.4%

Revenue for the Canadian Automobile Wholesaling industry is expected to grow over the five years to 2021. Since industry operators wholesale passenger vehicles, in addition to sport utility vehicles, industry revenue tends to ebb and flow with general fluctuations in the overall economy, particularly at the consumer level. Moreover, industry operators heavily rely on economic conditions in the United States, as a large portion of revenue is derived from Canada's southern neighbour. Although international trade is accounted for at the manufacturing level, industry operators still target cross-border downstream markets, such as US automobile and heavy-duty truck dealerships. However, despite a... Learn More

4. Scheduled Air Transportation in Canada

2023-2024 Revenue Growth: 15.2%

The Scheduled Air Transportation industry in Canada has performed well over much of the five years to 2022 as rising levels of disposable income enabled more consumers to purchase airline tickets, while a relatively weak Canadian dollar has encouraged inbound travel from foreign consumers visiting Canada. However, the COVID-19 (coronavirus) pandemic has resulted in many airlines suspending international service and governments imposing social distancing guidelines to prevent the spread of coronavirus, severely constraining industry revenue in 2020. Overall, industry revenue is estimated to decrease an annualized 3.4% to $30.7 billion over the five years to 2022. This includes a projected... Learn More

5. Hotels & Motels in Canada

2023-2024 Revenue Growth: 13.1%

The Hotels and Motels industry in Canada has endured incredible volatility over the five years to 2022 due to the global spread of COVID-19 (coronavirus). For the majority of the period, the industry grew steadily alongside growth in international tourism and domestic per capita disposable income. However, the pandemic resulted in a massive decline in international travel, in addition to a huge decline in domestic demand for hotels and motels. Ultimately, revenue declined 44.1% in 2020 alone as total tourism expenditure and inbound international travel plummeted. Vaccine availability in 2021 enabled industry growth, although overall demand remained well below the... Learn More

6. E-Commerce & Online Auctions in Canada

2023-2024 Revenue Growth: 11.2%

The E-Commerce and Online Auctions industry in Canada comprises retailers that primarily sell their products online. Accelerated by the rising number of internet and mobile connections, industry revenue is expected to post strong gains, increasing at an annualized rate of 23.2% to $30.5 billion over the five years to 2022. The exceptional rate of growth in this industry is aided in part by increasing internet traffic volume (e.g. number of fixed broadband and mobile connections), rising disposable income and reduced unemployment for the majority of the five-year period. The COVID-19 (coronavirus) pandemic has created a unique opportunity for the industry... Learn More

7. Movie Theatres in Canada

2023-2024 Revenue Growth: 10.5%

The performance of the Canadian Movie Theatres industry largely depends on the success or failure of major film releases. Although per capita disposable income directly influences households' ability to spend on discretionary services, such as movies, the marketing efforts and popularity of blockbuster films strongly determine revenue, as movie-going is a relatively low-cost entertainment option. Cineplex Inc. (Cineplex), the industry's dominant player, also drives industry performance, as it typically accounts for more than 60.0% of the domestic market. The COVID-19 (coronavirus) pandemic created significant disruptions for the industry as theatres temporarily closed, and audiences stayed home, which resulted in industry... Learn More

8. Semiconductor & Other Electronic Component Manufacturing in Canada

2023-2024 Revenue Growth: 9.6%

Canadian semiconductor and other electronic component manufacturers produce various input devices for circuits and memory chips. In recent years, manufacturers experienced mild volatility amid continued offshoring and greater competition from US and East Asian manufacturers. Any expansion has been driven by robust demand for domestically and abroad semiconductor products, and a global shortage for electronic components. COVID-19 has diminished manufacturers' performance by disrupting production plans and creating supply chain challenges. Industry-wide revenue is expected to rise at a CAGR of 0.3% to $5.4 billion over the five years to 2023, when revenue is forecast to jump 6.4% as high prices... Learn More

9. Full-Service Restaurants in Canada

2023-2024 Revenue Growth: 9.5%

The Full-Service Restaurants industry in Canada has experienced an expansion in performance over the five years to 2022, as the COVID-19 (coronavirus) pandemic erased several years of steady growth, but a forecast strong recovery offset this trend. Prior to the pandemic, rising levels of per capita disposable income and consumer spending drove industry expansion. The pandemic, however, created an unprecedented and precipitous fall in industry revenue, which led to widespread layoffs and closures. While remaining operators have adapted to unfavourable operating conditions by offering takeout and delivery options, depressed sales and rising costs have led to poor profitability among industry... Learn More

10. Cannabis Production in Canada

2023-2024 Revenue Growth: 8.4%

The Cannabis Production industry in Canada has blossomed over the five years to 2022 as a massive market was introduced into the industry, driving up revenue late during the period. Since Health Canada opened up medicinal cannabis production to more players in 2013, the industry has grown continuously as operators invest in production capabilities to produce quality products. However, the legalization of recreational cannabis in 2018 has been the primary driver of the industry boom during the period. As consumers shifted from illegal cannabis purchases to the licensed recreational market, the industry has grown significantly, with revenue growing 26.7% in... Learn More