Scientific Research & Development in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS 54171CARevenue
$13.1bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
62,141
Businesses
5,168
Wages
$X.Xbn
Scientific Research & Development in Canada industry analysis
The industry includes organizations conducting physical, engineering and life sciences research, but does not include private research and development (R&D) conducted in-house at corporations. Private enterprises represent most industry clients and funding.Government funding for R&D has grown as the current administration has made investment in Canadian research a priority. New enterprises have entered the market, encouraged by targeted funding toward technological and innovative research areas. This has led to fragmentation in the industry, with an increase in smaller-scale research initiatives. As a result, due to a significant economic expansion after the peak of the COVID-19 pandemic and low interest rates throughout majority of the period, industry revenue has been increasing at a CAGR of 3.3% over the past five years, including an estimated 2.1% decrease in 2023, and is expected to total $13.1 billion. In 2023, profit is set to decrease to 6.6%.Recently, there have been signs that the industry will begin to stabilize, despite the current administration having indicated an intention to increase R&D funding under its Innovation Agenda. This is expected to encourage private enterprises to allocate more money for product development, while several government initiatives focus on healthcare, green technologies and defence. This expected growth comes in addition to the $750.0 million already committed in 2020 under the Sustainable Development Technology Canada program, to support Canada's cleantech sector. Scientific research and development in Canada revenue is expected to grow at a CAGR of 1.7% over the next five years, reaching an estimated $14.3 billion in 2028, when profit is projected to increase to 6.8%.
Trends and Insights
- Corporate profit has been volatile in the last five years, as the global economy has faced various challenges. Luckily, investment in R&D across the private sector has remained relatively steady, helping industry revenue grow.
- Natural resources and energy research are helping combat climate change. This segment’s share of revenue has slightly increased as energy research is vital to combat climate change.
- Most establishments are located in Ontario and Quebec, which is largely in line with their shares of the Canadian population. These regions include highly funded universities and many large corporations that have the available budget to invest in research and development activity.
- The wide range of research lowers concentration. Because research can be conducted on every topic under the sun, it's very difficult to cover multiple sources of demand and possess a large market share.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 3.3 % over the past five years, to reach an estimated $13.1bn in 2023.
Trends and Insights
Corporate investment represents a large portion of industry revenue
- Corporate profit has been volatile in the last five years, as the global economy has faced various challenges. Luckily, investment in R&D across the private sector has remained relatively steady, helping industry revenue grow.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Military spending set to increase
- The Strategic Aerospace and Defence Initiative (SADI) will likely help encourage R&D that results in innovation, stronger competition and more collaboration between research institutions, both public and private.
Biggest companies in the Scientific Research & Development in Canada
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 | Profit ($short_0)
2023 | Profit Margin (%)
2023 |
|---|
There are no companies that hold a large enough market share in the Scientific Research & Development in Canada industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Environmental research, Natural resources and energy research and Health and life sciences research. Environmental research is the largest segment of the Scientific Research & Development in Canada.
Trends and Insights
Environmental research increases as awareness grows
- Environment and Climate Change Canada is the federal department responsible for coordinating environmental policies and preserving and enhancing the natural environment and renewable resources. Divisions under this office include the Environmental Protection Branch, the Meteorological Service of Canada and the Science and Technology Branch.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Laboratory Testing Services in Canada
- Scientific & Economic Consulting in Canada
Complementors
- Engineering Services in Canada
- Colleges & Universities in Canada
International industries
- Global Biotechnology
- Scientific Research & Development in the US
- Animal Health Biotechnology in the US
- DNA & DNA Forensic Laboratories in the US
- Contract Pharmaceutical Research Services in the US
Table of Contents
About this industry
Industry definition
This industry conducts physical, engineering or life sciences research and development (R&D). This industry does not include operators such as pharmaceutical or manufacturing companies that may undertake R&D to support operations. Government entities are also excluded from this industry.
What's included in this industry?
Engineering and technology researchElectrical engineering researchSoftware engineering researchMechanical engineering researchMedical and health sciences researchNatural and formal sciences researchAgricultural, forestry and fisheries researchCompanies
Purchase this report to view all major companies in this industry.
Related Terms
LIFE SCIENCESNANOTECHNOLOGYFORMAL SCIENCESIndustry Code
NAICS 541710 - Scientific Research & Development in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Corporate profit has been volatile in the last five years, as the global economy has faced various challenges. Luckily, investment in R&D across the private sector has remain...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Natural resources and energy research are helping combat climate change. This segment’s share of revenue has slightly increased as energy research is vital to combat climate ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most establishments are located in Ontario and Quebec, which is largely in line with their shares of the Canadian population. These regions include highly funded universities...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The wide range of research lowers concentration. Because research can be conducted on every topic under the sun, it's very difficult to cover multiple sources of demand and p...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major players in this industry. The wide range of research lowers concentration.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The National Research Council (NRC) in Canada helps industries and the government tackle strategic national priorities through research and development activity. This include...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit can vary dramatically as some operators are strictly funded by private organizations and seek to maximize profit. But other companies are funded through public agencie...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Scientific Research & Development industry in Canada in 2024?
The market size of the Scientific Research & Development industry in Canada is $13.1bn in 2024.
How many businesses are there in the Scientific Research & Development in Canada industry in 2023?
There are 5,168 businesses in the Scientific Research & Development industry in Canada, which has grown at a CAGR of 1.0 % between 2018 and 2023.
Has the Scientific Research & Development industry in Canada grown or declined over the past 5 years?
The market size of the Scientific Research & Development industry in Canada has been growing at a CAGR of 3.3 % between 2018 and 2023.
What is the forecast growth of the Scientific Research & Development industry in Canada over the next 5 years?
Over the next five years, the Scientific Research & Development industry in Canada is expected to grow.
What does the Scientific Research & Development in Canada include?
Engineering and technology research and Electrical engineering research are part of the Scientific Research & Development industry.
How competitive is the Scientific Research & Development industry in Canada?
The level of competition is high and steady in the Scientific Research & Development industry in Canada.
