Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 6.7 % over the past five years, to reach an estimated $15.4bn in 2025.
Trends and Insights
Expansion of prescription drug treatments provides a lucrative revenue stream
- Scientific R&D companies have benefited from stable growth across core revenue channels focused on medical treatments. When new prescription drugs or medical treatments are released into the market, it underscores significant activity among R&D laboratories engaged in establishing the product’s foundational structure. According to 2025 data from Health Canada, there have been 26 new individual drug application submissions up for approval review, highlighting the wide range of diseases and medical conditions targeted by researching innovative treatments. As new treatments get approved or recalled, scientific laboratories with chemistry and medical research expertise will be in high demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Greater emphasis on national security will drive lucrative R&D projects in the military space
- To ensure military readiness and maintain a modern military arsenal, the Canadian government will increase spending on new military technologies and weapons systems. The goal is to maximize long-term durability of the Canadian military and ensure their weapons systems keep up with the pace of global innovation. Scientific R&D will be integral, particularly laboratories with engineering and nanotechnology research expertise, as their skillset will provide the foundation to help accelerate new system development.
Biggest companies in the Scientific Research & Development in Canada
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 | Profit ($short_0)
2023 | Profit Margin (%)
2023 |
|---|
There are no companies that hold a large enough market share in the Scientific Research & Development in Canada industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Environmental research, Natural resources and energy research and Health and life sciences research. Environmental research is the largest segment of the Scientific Research & Development in Canada.
Trends and Insights
Increased environmental awareness drives demand for environmental research
- The environmental research sphere focuses on advancing R&D efforts to tackle national environmental issues, such as climate change, meteorological and weather effects, air quality, water and natural preservation. Environmental research is integral for insight provision into new technologies to address these issues and advocate for specific policies that can be implemented by the federal government.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry conducts physical, engineering or life sciences research and development (R&D). This industry does not include operators such as pharmaceutical or manufacturing companies that may undertake R&D to support operations. Government entities are also excluded from this industry.
What's included in this industry?
Health and life sciences researchEnvironmental researchNatural resources and energy researchInformation and communications researchElectrical engineering researchMechanical engineering researchSoftware engineering researchCompanies
Purchase this report to view all major companies in this industry.
Related Terms
LIFE SCIENCESNANOTECHNOLOGYFORMAL SCIENCESIndustry Code
NAICS 541710 - Scientific Research & Development in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Strong growth across medical treatments space drives lucrative revenue streams. Consistent incline in total health expenditure and acceleration of new novel drug treatments i...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Natural resources and energy research are helping combat climate change. Greater consumer emphasis on renewable energy adoption and prioritization of climate change as a nati...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most establishments are located in Ontario and Quebec, which is largely in line with their shares of the Canadian population. These regions include highly funded universities...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each province in 2025
- Number and share of revenue each province accounts for in 2025
- Number and share of wages each province accounts for in 2025
- Number and share of employees in each province in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The wide availability of different research topics lowers concentration.Since scientific R&D covers a wide range of health and environmental topics, it's very difficult to cov...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Diverse array of research fields constrains major company growth. Due to the availability of different fields of research in competitive areas like health and life sciences, ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The National Research Council (NRC) in Canada helps industries and the government tackle strategic national priorities through research and development activity. This include...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit varies based on funding rates from public sector clients and private companies’ economic sentiment. If economic conditions stagnate or public funds are lowered, it can...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Assets (2018-2023)
- Liabilities (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Scientific Research & Development industry in Canada in 2025?
The market size of the Scientific Research & Development industry in Canada is $15.4bn in 2025.
How many businesses are there in the Scientific Research & Development industry in Canada in 2025?
There are 5,320 businesses in the Scientific Research & Development industry in Canada, which has grown at a CAGR of 1.7 % between 2020 and 2025.
How may import tariffs affect the Scientific Research & Development industry in Canada?
The Scientific Research & Development industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Scientific Research & Development industry in Canada?
The Scientific Research & Development industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Scientific Research & Development industry in Canada grown or declined over the past 5 years?
The market size of the Scientific Research & Development industry in Canada has been growing at a CAGR of 6.7 % between 2020 and 2025.
What is the forecast growth of the Scientific Research & Development industry in Canada over the next 5 years?
Over the next five years, the Scientific Research & Development industry in Canada is expected to grow.
What does the Scientific Research & Development industry in Canada include?
Health and life sciences research and Environmental research are part of the Scientific Research & Development industry in Canada.
How competitive is the Scientific Research & Development industry in Canada?
The level of competition is high and steady in the Scientific Research & Development industry in Canada.
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Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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