The Canadian Space Agency (CSA) has and it shows total revenues of $5.38 billion as compared with $3.49 billion in revenues in 2013.
While this may seem like a significant increase, it is in fact a 2% year over year growth rate. The reason for the significant jump in revenue is a new methodology used by the CSA which added new downstream segment organizations and their revenues to the survey.
One significant note on the data, Earth Observation (EO) saw a 39% growth in revenue from 2013 to 2014. The EO trend in growth and revenue should continue.
The report and data needs to be prefaced by how the Upstream and Downstream segments are defined.
The CSA defines Upstream segment as “the effort required to design, test, build, integrate, and launch assets into space”. Since Canada does not launch assets into space the CSA has not included this area as a separate value-chain category in the report.
The CSA defines the Downstream segment as “the effort required for the day-to-day operation of space assets, manufacturing of products and software applications that transform space data and signals into useful end products, and services provided to end-users.”
The report is based on data from 2004-2014 and includes data from 144 organizations.
The “report uses a new methodology developed by the Organisation for Economic Co-operation and Development’s Space Forum, of which the CSA is a participating member, to characterize Canadian space activities on the basis of a value-chain approach. The definitions of space sector categories have been updated, and report findings are presented on the basis of upstream and downstream segment activities. This re-categorization is intended to improve the measurement of the space sector and enable international comparisons.”
In the President’s message Sylvain Laporte said “The 2014 survey results indicate that the space sector has achieved revenues of $5.4B and a workforce of over 10,000. Upstream segment activities related to research, engineering and manufacturing account for $1B. Downstream segment operations, products and services account for $4.4B, with Satellite Communication dominating the downstream segment. Domestic, and particularly commercial, sales emerged as the most important area for growth in 2014. At the same time, export markets experienced some contraction. Overall, the space sector contributed $2.9B to gross domestic product (GDP) and helped maintain 25,000 jobs (direct, indirect and induced) in the wider Canadian economy.”
About Marc Boucher
Boucher is an entrepreneur, writer, editor & publisher. He is the founder of SpaceRef Canada Interactive Inc, CEO and co-founder of SpaceRef U.S., advisor and co-founder of the Canadian Space Commerce Association, and director and co-founder of MaxQ Accelerator Inc. Previously he was the founder of Maple Square, Canada’s first internet directory and search engine which he sold.