Environmental and Clean Technology in Canada: Market Outlook and Trends

Canadian domestic sales of environmental and clean technology goods and services reached $33.5 billion in 2024, up 9.7% on 2023 and 42.3% above 2020.

Goods accounted for $16.7 billion and services for $16.8 billion. Growth has run at 9.2% a year across the four years, with services growing at almost twice the rate of goods.

The compound annual rate across the four years is 9.2%. No single year carries the growth, which makes this one of the steadier expansion records in the Canadian industry statistics.

Services Passed Goods at 50.2% of the Market

In 2020 goods were 54.8% of domestic sales and services 45.2%. By 2024 services had reached 50.2% against 49.8% for goods, the first year in the period that services took the larger share.

Services sales rose 58.2% between 2020 and 2024, a compound rate of 12.2% a year. Goods sales rose 29.3%, a rate of 6.6%. Goods also fell slightly in 2023, down 0.5%, the only decline in either series.

In 2024 services grew 13.9% against 5.7% for goods. The composition of the market is moving from equipment toward engineering, remediation and advisory work, and that shift has been continuous rather than confined to one year.

Energy Efficiency Is 30.7% of the Whole Market

Energy efficiency appears on both sides of the market. Energy efficiency technologies were the largest goods category at $5.2 billion, 31.0% of all goods. Energy efficiency, industrial design and related services were the largest services category at $5.1 billion, 30.4% of all services.

Together they are $10.3 billion, or 30.7% of total domestic sales. No other theme in the data comes close to that combined weight.

Wastewater and Bioenergy Goods Roughly Doubled Since 2020

Four goods categories grew by more than 80% between 2020 and 2024. Monitoring and reduction of greenhouse gas and air pollution technologies rose 117.7%, industrial wastewater and municipal sewage treatment 108.2%, bioenergy equipment and biofuels 91.9%, and precision agriculture 86.8%.

Bioenergy is the one that matters most in dollars. It added $1.5 billion over the four years, moving from $1.6 billion to $3.2 billion, and is now the second largest goods category at 19.0% of all goods sales.

Precision agriculture added $810.6 million to reach $1.7 billion, and industrial wastewater and sewage treatment added $684.8 million to reach $1.3 billion.

Energy efficiency technologies grew only 11.5% over the period despite remaining the largest category. Its share of goods sales fell as the faster-growing categories expanded around it.

Transportation Technology Sales Halved to $692.4 Million

Transportation technologies fell from $1.4 billion in 2020 to $692.4 million in 2024, a decline of 50.5%. Sales fell in every year of the period: to $1.3 billion, $1.0 billion, $807.4 million and then $692.4 million.

Water management, recycling and drinking water technologies also declined, down 27.9% from $622.2 million to $448.7 million. Those two are the only goods categories below their 2020 level.

The transportation services line moved the other way, rising from $294.3 million in 2021 to $433.0 million in 2024.

Site Remediation Services Reached $4.0 Billion

Six of the ten services categories carry publishable 2024 figures. Energy efficiency, industrial design and related services lead at $5.1 billion, followed by site remediation and emergency environmental services at $4.0 billion and clean energy services at $3.9 billion.

Energy efficiency services doubled over the period, rising 102.2% from $2.5 billion. Site remediation has no publishable 2020 figure, but grew 48.2% between 2021 and 2024, from $2.7 billion.

Ontario Holds 38.8% of Sales, Down From 42.7%

Ontario generated $13.0 billion in 2024, 38.8% of national sales. Quebec follows at $7.8 billion and 23.2%, British Columbia at $4.9 billion and 14.6%, Alberta at $3.4 billion and 10.2%.

Both of the two largest markets lost share between 2021 and 2024. Ontario fell from 42.7% to 38.8%, a loss of 3.9 percentage points. Quebec fell from 26.0% to 23.2%.

British Columbia Grew 91.2% and Alberta 72.8%

British Columbia nearly doubled over the period, rising 91.2% from $2.6 billion in 2020 to $4.9 billion in 2024. Its share of national sales moved from 10.7% in 2021 to 14.6% in 2024, a gain of 3.8 percentage points.

Alberta rose 72.8% between 2021 and 2024, from $2.0 billion to $3.4 billion, taking its share from 7.7% to 10.2%. Measured from 2020 the increase is 49.4%, since Alberta sales fell in 2021 before recovering.

The territories grew fastest in percentage terms, up 213.5% from $64.6 million to $202.6 million, though they remain 0.6% of the national market.

Atlantic Canada Is the Only Region Below Its 2020 Level

Atlantic Canada generated $1.4 billion in 2024, 0.7% below its 2020 figure. Sales moved from $1,367.9 million in 2020 down to $1,253.0 million in 2021, up to $1,416.1 million in 2022, down to $1,266.2 million in 2023 and back to $1,358.9 million in 2024.

The region's share of national sales fell from 4.9% in 2021 to 4.1% in 2024. In a market growing 9.2% a year nationally, flat regional sales mean a steadily shrinking share.

Within the region, goods sales fell from $610.0 million in 2020 to $544.4 million in 2024, down 10.8%. Services rose from $757.9 million to $814.5 million, up 7.5%, so the same shift from goods to services visible nationally is present in Atlantic Canada on a smaller and declining base.

What we do at Bridging Local

We run custom research for businesses that need answers national datasets cannot provide. For clean technology companies that covers buyer and specifier interviews, competitor and pricing analysis, addressable market sizing by province and segment, channel and distribution assessment, and go-to-market planning.

For manufacturers, service providers and investors, that usually means sizing the addressable demand for a specific technology in a defined territory, testing a product with the people who approve purchases, mapping the competitive set, or building the evidence a lender, board or grant programme will ask for.

Frequently Asked Questions

How big is the clean technology market in Canada?

Domestic sales of environmental and clean technology goods and services reached $33.5 billion in 2024, up 9.7% on 2023 and 42.3% above 2020. Goods accounted for $16.7 billion and services for $16.8 billion. The figures cover domestic sales only and exclude exports.

How fast is Canadian clean technology growing?

Sales grew 42.3% between 2020 and 2024, a compound annual rate of 9.2%. Growth was positive in every year, at 8.9%, 10.9%, 7.5% and 9.7%. Services grew at 12.2% a year against 6.6% for goods.

What is the largest clean technology segment in Canada?

Energy efficiency. Energy efficiency technologies were the largest goods category at $5.2 billion and energy efficiency, industrial design and related services the largest services category at $5.1 billion. Together they are $10.3 billion, or 30.7% of total domestic sales.

Which clean technology segments are growing fastest?

Among goods, monitoring and reduction of greenhouse gas and air pollution technologies rose 117.7% between 2020 and 2024, industrial wastewater and sewage treatment 108.2%, bioenergy equipment and biofuels 91.9% and precision agriculture 86.8%. Among services, energy efficiency and industrial design rose 102.2%.

Are any clean technology segments shrinking?

Two goods categories sit below their 2020 level. Transportation technologies fell 50.5%, from $1.4 billion to $692.4 million, declining in every year of the period. Water management, recycling and drinking water technologies fell 27.9%, from $622.2 million to $448.7 million.

Which province leads Canadian clean technology sales?

Ontario, at $13.0 billion in 2024 and 38.8% of national sales, followed by Quebec at $7.8 billion, British Columbia at $4.9 billion and Alberta at $3.4 billion. Ontario's share fell from 42.7% in 2021 as British Columbia and Alberta gained.

Which region is growing fastest?

British Columbia among the large markets, up 91.2% between 2020 and 2024 and lifting its share from 10.7% to 14.6%. Alberta grew 72.8% between 2021 and 2024. The territories grew 213.5% but remain 0.6% of the market. Atlantic Canada is the only region below its 2020 level, at 0.7% down.

About This Analysis

This analysis was produced by Bridging Local (RC Research & Insights Inc.), a Vancouver-based market research and business consulting firm. We run primary research across B2B and B2C markets, including surveys, in-depth interviews, competitive analysis, local market deep dives and go-to-market strategy.

If you are sizing a market, testing a concept, or working out where demand sits in your category, our market research services are built for exactly that.