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  • Writer's pictureRahul

High-Potential Canadian Industries for 2023-24

As we step into the dynamic landscape of 2023-24, the Canadian economy is showing remarkable resilience and potential for growth across various sectors.

These sectors are set to shape the economic landscape and offer new opportunities for investors, professionals, and entrepreneurs alike.



Growth Rate


Travel Agencies



Semiconductor Machinery Manufacturing



Airline Industry









Movie Theatres






Semiconductor & Other Electronic Component Manufacturing



Full-Service Restaurants



Amusement Parks & Arcades


1. Travel Agencies in Canada

Growth Rate for the year 2023 – 24: 28.3%

Travel Agencies Market in Canada

The projected market revenue generated by Travel Agencies in Canada is approximately CAD $2.3 billion. Notably, the market size within the Travel Agencies sector in Canada exhibited a remarkable growth rate of 57.7% in the year 2022, signifying a robust expansion in the industry.

Breaking down the revenue distribution across provinces, Ontario emerges as the frontrunner, contributing the largest share at 40.3%. Quebec follows suit with a substantial portion of 22.5%, showcasing its significance in the industry landscape. Meanwhile, British Columbia and Alberta also play significant roles, accounting for sizeable portions of revenue at 19.6% and 11.6%, respectively. This distribution highlights the diverse geographic impact of the Travel Agencies industry's economic footprint across the nation.

2. Semiconductor Machinery Manufacturing in Canada

Growth Rate for the year 2023 – 24: 20.9%

2. Semiconductor Machinery Manufacturing Market in Canada

The market of Semiconductor Machinery Manufacturing in Canada is valued at CAD$ 224 million.

The Canadian Semiconductor Machinery Manufacturing sector plays a pivotal role by providing essential capital equipment and machinery to support semiconductor manufacturers in producing the vital components required for a diverse array of electronic goods. Similar to many other segments of the domestic manufacturing landscape, participants within this industry face competition from international counterparts, who frequently benefit from lower labor and production expenses, along with heightened productivity and manufacturing capabilities. Consequently, this dynamic often results in the influx of cost-effective imports, which has consistently posed challenges to the industry's sustainability.

The emergence of the COVID-19 pandemic has introduced a unique twist to this narrative, potentially fostering growth within the sector. This is primarily attributed to the global scarcity of semiconductor chips, a phenomenon that has been magnified by the pandemic. As electronic devices have become indispensable across industries, the shortage of these chips has disrupted supply chains and sparked increased demand for their production. In this context, the Canadian Semiconductor Machinery Manufacturing industry stands to benefit from the surge in demand, as it plays a critical role in addressing the worldwide chip shortage and subsequently propelling its own advancement.

3. Airline Industry in Canada

Growth Rate for the year 2023 – 24: 15.2%

Airline Industry in Canada

The airline industry in Canada has experienced a remarkable surge, characterized by substantial growth and dynamic developments. This is vividly demonstrated by the substantial expansion in the market size of the Scheduled Air Transportation sector, which reached an impressive CAD$ 41.34 billion in revenue during the year 2022. This robust financial metric serves as a testament to the industry's upward trajectory and its increasing significance within the country's economic landscape.

Comparing this recent accomplishment with earlier years, it becomes evident that the industry has undergone transformative changes. In 2021, the operating revenue earned by Canadian air carriers amounted to $12.5 billion, which was significantly lower, representing just 42.2% of the revenue reported in 2019. This stark contrast highlights the sector's resilience and adaptability, as it navigated through challenging periods and emerged stronger, poised for growth.

The year 2022 marked the realization of long-awaited milestones within the Canadian airline sector. Canada Jetlines finally commenced operations, fulfilling years of anticipation. Simultaneously, Lynx Air also took its inaugural flights, contributing to the industry's diversification. Looking ahead, Flair Airlines is positioned to further expand its fleet, targeting 27 aircraft and 28 cities in 2023, including a notable presence in the United States. Porter Airlines is equally making impressive strides in its expansion endeavors. Their recent announcements of new flights to Vancouver, Calgary, and Edmonton for 2023 underscore their commitment to growth. Moreover, an array of upcoming routes, destinations, and connections is on the horizon, encompassing not only more destinations within the U.S. but also sun-soaked locales in Mexico and the Caribbean.

Collectively, these advancements illustrate the Canadian airline industry's vitality, resilience, and capacity for innovation. The sector's soaring trajectory, marked by increased revenue, new entrants, and strategic expansion, exemplifies its pivotal role in connecting people, facilitating trade, and contributing to the broader economic landscape.

4. Hotel Industry in Canada

Growth Rate for the year 2023 – 24: 13.1%

Hotel Industry in Canada

The Hotels and Motels sector in Canada has navigated through a period of remarkable instability throughout the five years leading up to 2022, primarily driven by the worldwide propagation of the COVID-19 pandemic. During most of this time span, the industry exhibited consistent expansion, paralleling the upswing in both global tourism and the disposable income per capita of domestic residents. However, the onset of the pandemic brought about an unprecedented shift, triggering a series of profound challenges.

The repercussions of the pandemic have been profound, triggering a substantial downturn in both international travel and the demand for domestic lodging facilities. This seismic shift resulted in a significant contraction of revenue by a staggering 44.1% in 2020 alone. The decline was primarily a consequence of two interconnected factors: the sharp reduction in total tourism expenditures and the precipitous drop in inbound international travel.

The abrupt halt in international travel, coupled with widespread travel restrictions and safety concerns, culminated in a paradigm shift within the Hotels and Motels industry. The decline in revenue underscored the sector's sensitivity to global events and its interconnectedness with the broader economic landscape. As the industry grappled with these challenges, it concurrently sought to adapt, innovate, and reinvent itself to cater to the evolving needs and expectations of travelers and patrons.

The fluctuating fortunes of the Hotels and Motels industry over this period underscore its resilience in the face of adversity, as well as its capacity to rebound and reestablish itself as a cornerstone of the hospitality and tourism sectors. As the world gradually emerges from the grip of the pandemic, the industry's journey to regain stability and rebuild underscores its vital role in facilitating accommodations and experiences for travelers, while also contributing to the broader economic revival.

5. E-commerce Market in Canada

Growth Rate for the year 2023 – 24: 11.2%

Online shopping market in Canada

Revenue in the eCommerce market in Canada is projected to reach CAD$ 75 bn in 2023.

Canada's substantial digital populace has positioned the country as an immensely lucrative market in recent times. Among the prominent e-commerce sectors in Canada, there are two that distinctly shine: electronics and fashion. These two categories have emerged as frontrunners, exhibiting a near-equal division in their overall market presence. In the year 2022, electronics and media constituted 28 percent of the nation's e-commerce landscape, while fashion closely followed at 27 percent.

In terms of planned online expenditures, electronics managed to secure the lead, albeit by a narrow margin, surpassing clothing and footwear to claim the top position. It is noteworthy that electronics' allure in terms of online spending slightly outpaced that of fashionable items.

However, when scrutinizing the actual purchase behaviour of Canadian digital consumers in 2022, it becomes evident that fashion took the lead as the most frequently procured category through online platforms. This trend highlights the dynamic nature of consumer preferences and their inclination to invest in fashion-related products via e-commerce avenues.

The synergy between Canada's digital infrastructure and consumer inclinations has orchestrated a landscape where electronics and fashion dominate the e-commerce spectrum. This dual dominance underscores the significance of these categories in shaping the nation's online retail scene and reflects the evolving buying patterns of Canadian consumers as they increasingly embrace digital platforms for their shopping needs.

6. Movie Theatres Market in Canada

Growth Rate for the year 2023 – 24: 10.5%

Movie Theatre Market in Canada

The Canadian Movie Theatres sector's trajectory is intricately intertwined with the outcomes of significant film launches. While the disposable income per individual directly impacts the capacity for households to allocate resources to non-essential experiences like watching movies, the effectiveness of marketing endeavours and the reception of blockbuster releases wield considerable influence over revenue. Movie attendance holds appeal due to its affordability, making it a favoured option for entertainment.

Playing a pivotal role, Cineplex Inc. (Cineplex), the prominent figure in the industry, holds substantial sway over its overall performance. This leading player traditionally commands over 60.0% of the domestic market share, exerting a significant impact on the sector's dynamics.

The success or failure of major cinematic unveilings remains the fulcrum upon which the Canadian Movie Theatres industry pivots. While economic indicators such as disposable income shape consumer behaviour, it is the allure of big-budget films, coupled with adept marketing strategies, that ultimately dictates the sector's financial health. Moreover, Cineplex's dominant position amplifies its influence as a major driving force within the industry, shaping trends and outcomes within the Canadian cinematic landscape.

7. Cannabis Production Market in Canada

Growth Rate for the year 2023 – 24: 10.5%

Cannabis Production Market in Canada

Over the past few years, Canadian cannabis manufacturers have experienced substantial growth following the legalization of recreational cannabis products in 2018. This monumental policy change unlocked extensive opportunities for expansion. Moreover, the expansion of cannabis cultivation can be traced back to Health Canada's move in 2013 to broaden the participation of various entities in the production of medical cannabis. This strategic step set the stage for an ongoing trajectory of growth, as producers made consistent investments in enhancing their production capabilities to ensure the delivery of high-quality products.

As the shift towards licensed recreational consumption gained momentum, the landscape for cannabis cultivation underwent a significant transformation. The transition of consumers from illicit cannabis transactions to the regulated and licensed recreational market became a driving force behind the notable expansion of cannabis cultivators. However, the surge in revenue is expected to moderate, with a projected growth rate of 17.5% anticipated for the year 2023 alone.

This deceleration in growth can be attributed to multiple factors. The initial excitement surrounding the novelty of legal cannabis has waned, leading to a more stabilized market environment. Additionally, the shift from the black market to legitimately licensed purchases has resulted in a reduced pace of growth, as the transition has captured a significant portion of the previously untapped consumer base. As the industry matures, the initial boom in growth is gradually giving way to a more balanced and sustainable pattern of development.

8. Semiconductor & Other Electronic Component Manufacturing Market in Canada

Growth Rate for the year 2023 – 24: 9.6%

Semiconductor & Other Electronic Component Manufacturing Market in Canada

Canadian manufacturers of semiconductors and other electronic components are engaged in the production of a diverse range of input devices that contribute to the creation of circuits and memory chips. This industry has encountered a moderate level of instability in recent times due to the ongoing trend of offshoring production activities and intensified competition from manufacturers located in both the United States and East Asia.

Anticipated growth in revenue within this sector has been calculated at a Compound Annual Growth Rate (CAGR) of 0.3% over the last five years. Notably, the ongoing year is projected to witness a substantial surge of approximately 6.4%. These combined trends are expected to result in a total revenue figure of CAD$7.3 billion for the year 2023, with projected profits reaching 10.2%. It's important to acknowledge that the observed volatility in recent times has been a key driver behind the fluctuations in revenue. The unexpected drop in revenue in 2020 was followed by a rapid and robust rebound, driven by unforeseen consumer demand for durable goods like digital devices and motor vehicles.

9. Full-Service Restaurant Market in Canada

Growth Rate for the year 2023 – 24: 9.5%

Full service restaurant market in Canada

The size of Full-service restaurants in Canada was estimated to be valued at CAD$ 56 billion in 2022.

The Full-Service Restaurants sector in Canada underwent a period of growth spanning the five years leading up to 2022, but this trajectory faced disruption due to the impact of the COVID-19 pandemic. This public health crisis erased the steady growth observed in the preceding years. Nevertheless, a robust projected recovery outlook has helped to counterbalance this adverse trend.

Before the pandemic, the industry thrived due to the confluence of two factors: increasing levels of per capita disposable income and heightened consumer expenditures. These dynamics provided a fertile ground for the industry's expansion.

However, the pandemic's onset introduced an unparalleled and rapid decline in the industry's revenue, causing widespread repercussions such as extensive layoffs and numerous closures. The aftermath of these upheavals prompted a paradigm shift in how the remaining establishments operated. Many restaurants adapted by incorporating takeout and delivery services to navigate the challenging operational landscape.

Unfortunately, despite these adaptations, the sector struggled due to the combination of sluggish sales and mounting operational costs. This challenging environment resulted in diminished profitability among the industry's participants.

Ultimately, the Full-Service Restaurants industry in Canada witnessed a transformative period marked by growth, disruption, and adaptation. The industry's trajectory was influenced by complex factors, and its ongoing evolution underscores the resilience and flexibility required to endure in the face of unforeseen challenges.

10. Amusement Parks & Arcades Market in Canada

Growth Rate for the year 2023 – 24: 8.4%

Amusement Parks and Arcades Market in Canada

Amusement parks and arcades are profoundly influenced by shifts in consumer spending behaviour and the broader macroeconomic climate, given that their offerings are completely non-essential and discretionary in nature. In a landscape rich with entertainment and leisure alternatives, even during periods of economic positivity, the competition within this sector remains intense.

During the peak of the pandemic, the majority of these venues faced mandatory closures, driven by paramount health and safety considerations. This unprecedented circumstance resulted in a drastic decline in revenue, mirrored by a decrease in profitability, as these businesses grappled with the inability to generate any sales during this period of closure.

As circumstances began to improve and consumers found themselves with a relatively higher disposable income, a significant number of individuals eagerly returned to amusement parks and arcades. This resurgence in demand led to a remarkable surge in sales, significantly exceeding previous levels. This shift highlights the sector's ability to rebound swiftly once the conditions for growth and consumer confidence were re-established.

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