Fastest growing industries in Canada

 

Like many parts of the developed world, Canada’s growth rate has also slowed down in the recent past. In the third quarter of 2024, it saw just 1.5% year-on-year growth, reflecting a continued softening since after the post-pandemic spike up to 2022. But that doesn’t mean that it’s still growing. Moreover, as would be expected, the overall growth rate masks the fact that some industries are growing even faster. Others, of course, are a drag on overall growth. Here, seven of the fast-growing industries in Canada are discussed:

Innovation and technology:

Canada is focused heavily on research and development at present, with Canadian cities like Toronto and Montreal having become hubs for tech startups. As a result it has made gains in contributing to the growth of newly emerging technologies like artificial intelligence. It’s also adding to already established fields within the industry, like software, cybersecurity and data analytics.

Healthcare:

A key challenge and opportunity for the Canadian economy is the demographics. Its population is ageing, which means that there’s a greater requirement for more robust healthcare systems and pharmaceutical developments. This has led to a big demand for medical technology and treatments, along with professionals like doctors and nurses.  It can be expected that this demand will continue to grow in the years to come as well.

Clean Energy:

With the world’s focus on achieving net-zero carbon emissions sooner rather than later, can Canada be far behind? The Canadian government has sustainability related programmes in place that span the promotion of green energy, greater energy efficiency and sustainability as such. Since this is expected to be a growing field globally over the next decades, it should continue to drive Canada forward as well.

Casino gaming:

As global growth continues, rising incomes have led to more leisure time. This, coupled with the growing use of the internet and smartphones has led to a rise in popularity of online casino gaming worldwide. There’s more than one website that offers the opportunity for gaming in this way. In Canada too, the gambling industry expected to grow by no less than 10.1% in 2025-26 in revenue terms. That said, the industry as such could see a risk from brick-and-mortar casinos. As noted earlier, the Canadian economy is seeing a slow down right now. As a result, there could be less money for leisure pursuits in the pockets for now. There’s also growing competition from US based competitors. The Canadian gambling industry was in decline for the past few years because of this. Whether it’s just the online casinos industry or the overall gambling industry that picks up, then remains to be seen.

Entertainment and hospitality:

With the pandemic well behind us now, travel and entertainment are back to normal. This means, outdoor concerts and overseas trips are growing well too. The Canadian arts, entertainment and recreation industries are expected to see 3.5% growth up to 2031. Event managers and sports administration sub-industries are likely to benefit from this. Big public events also encourage the hospitality industry, along with travel for both business and leisure. Besides hotels and guest houses, restaurants and bars are also expected to gain from this.

Logistics:

In the online shopping era, if any one sector has benefited, it’s logistics. From transport service providers to packaging companies, there has been rapid growth in the past years. The covid-fuelled lockdowns only propelled it forward, unlike that for many other industries. Additionally, moving locations for jobs and business growth means continued support to the segment.

Education:

Canadian education has made a name for itself over the past decades. And this can be expected to drive the industry forward in the coming years too. There has been growing interest in vocational courses in particular over the past years, which can continue. Further, in a fast-paced business environment, constant upgradation in skills is essential. This can keep driving even established professionals back to education. 

Encouraging prospects

These industries’ growth indicates that even though the Canadian economy is in a slump right now, growth engines are in place. A whole host of unrelated sectors has strong prospects for varied reasons. With the ghost of the pandemic well behind us, the arts, entertainment, hospitality and travel industries can grow now. On the other hand, online shopping, which got a fillip during the lockdowns will continue to expand too. And with that, so will the logistics sector. 

21st centuries like technological innovation and sustainability are likely to get even more prominent in the years to come. As will healthcare, owing to Canada’s demographics. Its strength in education can also continue, especially as professionals upskill themselves. Finally, with incomes expected to continue growing, the online casinos industry can also see growth. This will be supported by technological advancements.