The Canadian aircraft and engine industry is expected to generate $27.9 billion in revenue in 2025 and employs over 45,000 people. After the double downturn caused by the pandemic and logistical bottlenecks, the sector has rebounded thanks to the massive return of air travel, modernization programs by major airlines, and government demand for new civilian and military aircraft. The resurgence of air traffic, the accelerated obsolescence of fleets, and the positioning of national champions like Bombardier are driving strong order books, while defense contracts help sustain profit margins despite ongoing supply chain volatility.
Three indicators summarize the size, profitability, and growth rate of the market.
Total value of aircraft, engines, and components produced by the Canadian industry
Share of revenue converted into earnings before interest and taxes, reflecting high value-added engineering
Average annual sales growth over five years despite supply chain volatility
Manufacturers are relying on two growth drivers: fleet modernization with lighter, more efficient, and hybrid aircraft, and the increase in defense budgets driven by geopolitical tensions. At the same time, the shift toward more resilient supply chains (strategic component stockpiling, multi-year contracts, geographic diversification) is expected to mitigate the impact of metal and semiconductor shortages and help contain cost pressures.
Finally, the integration of AI and additive manufacturing in assembly will reduce lead times and support margins, which analysts expect to rise to 4.5% by 2030. In this environment, the sector presents a strong return profile for investors seeking both civilian and military exposure within the Canadian economy.
Three indicators summarize the size, profitability, and growth rate of the market.
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