Most Profitable Industries in Canada in 2023

1. Primary Care Doctors in Canada

Total Profit for 2023: $22.4B

Demographic trends drive the rising demand for comprehensive primary care in Canada. An aging population's expanding medical needs are increasing the demographic's consumption of medical services. Primary care physicians are also first in line to help this demographic navigate complex conditions and visit specialists. Sudden population growth in Canada – an outcome of a surge in immigration and temporary residents – has also expanded the need for primary care physicians. Rising spending on primary care was abruptly disrupted by COVID-19, leading providers to navigate unprecedented financial and operating pressures. Telehealth adoption did help primary care providers continue to meet with... Learn More

2. Apartment Rental in Canada

Total Profit for 2023: $14.5B

Revenue for Canadian apartment lessors has grown in recent years. Apartment lessors collect rental income from properties they lease, where the rates they charge are largely determined by market forces. The supply of apartment rentals has grown at a slower rate than demand, which has elevated rental rates to the benefit of lessors. Favourable economic conditions and demographic trends during most of the period have driven growth in demand. In 2020, the spread of COVID-19 lessened demand for apartment rentals, but the nature of apartment leases prevented a decline in revenue until 2021. Revenue has grown since 2022 as higher... Learn More

3. Electric Power Transmission in Canada

Total Profit for 2023: $12.2B

Electricity transmission companies in Canada are responsible for storing and distributing electricity from Canada's upstream generation facilities. They manage transmission and distribution networks that total over 160,000.0 kilometres to serve residential, industrial and commercial customers. Industry performance is reliant on electricity prices within provinces, although the inelasticity of energy demand and the high degree of regulation insulates transmitters from any significant revenue declines. Industry performance is also closely tied to demand from major industrial, residential and commercial markets. While residential market demand is somewhat inelastic, industrial and commercial output and demand are much more variable, so performance in these sectors... Learn More

4. Real Estate Sales & Brokerage in Canada

Total Profit for 2023: $8.3B

Real estate sales and brokerage services are closely aligned with the health of the Canadian real estate market. Revenue rises alongside property prices and real estate transaction volumes as real estate agents are paid on a commission basis when they close a deal. A growing, aging and progressively wealthy Canadian population has boosted demand for residential properties. Industry revenue has been growing at a CAGR of 7.3% over the past five years, and is expected to reach $26.0 billion through the end of 2023, despite a decline of 2.5% in 2023 alone.

Revenue has grown despite a sharp decline in the... Learn More

5. Renewable Power in Canada

Total Profit for 2023: $6.1B

Throughout 2023, renewable power companies have expanded. While the industry has benefited from an improving economy, industrial output has slightly decreased in response to the COVID-19 (coronavirus) pandemic, which dampened demand from some of the industry's major markets, specifically, commercial and industrial markets, as many industries were forced to shut down to help mitigate the spread of coronavirus. Overall, industry revenue has been growing at a CAGR of 2.2% over the past five years, and is estimated to reach $39.5 billion in 2023. This includes a 1.1% rise in 2023 alone, when profit will reach 16.7%. This growth in 2023... Learn More

6. Heavy Engineering Construction in Canada

Total Profit for 2023: $4.8B

Heavy engineering construction in Canada undertakes large-scale infrastructure projects that include mass transit systems, harbour and port facilities, tunnels, outdoor areas and power plants. In addition to heavy construction, contractors also provide auxiliary services such as the maintenance and repair of physical structures and construction related to conservation. The industry depends heavily on government spending at both the federal and provincial levels, private investment in physical assets and downstream demand on the part of the energy sector.

Through the end of 2023, construction contractors have benefited from the federal government's strong commitment to closing Canada's infrastructure gap, although volatile commodity markets... Learn More

7. Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada

Total Profit for 2023: $4.5B

Pharmacy wholesalers have benefited from its integral role in the pharmaceutical supply chain without the plague of external competition from manufacturers, which is endemic to most wholesale industries. Pharmaceutical wholesalers and self-distributing pharmacy chains, which are excluded from the industry, account for 95.0% of total pharmaceuticals distributed to pharmacies and to long-term and specialized healthcare facilities. Pharmaceuticals have comprised one of the fastest-growing segments of healthcare expenditures over the past two decades. Due to the burgeoning elderly population's sustained need for pharmaceuticals, many downstream markets have sought out wholesalers to provide quick product turnaround. Perpetuating this trend, the uptick of... Learn More

8. Oil & Gas Field Services in Canada

Total Profit for 2023: $4.0B

Oil and gas field service operators in Canada have experienced volatile market conditions throughout 2023. World commodity prices performed well throughout the reporting period. However, a fall in natural gas and crude oil prices adversely affected revenue in 2020 and 2032. This decrease in revenue can be mainly attributed to the COVID-19 pandemic and other geopolitical tensions that caused the collapse in oil and gas demand and prices. As economic conditions improved from the peak of the pandemic, demand for oil and gas returned to pre-pandemic levels and even reached new highs. As a result, IBISWorld forecasts revenue has been... Learn More

9. Law Firms in Canada

Total Profit for 2023: $3.7B

The Law Firms industry in Canada has experienced growth, with revenue expected to increase at a CAGR of 1.8% to $18.7 billion over the five years to 2023, including an increase of 0.6% in 2023 alone. Demand for industry legal services has been facilitated by restructurings, secondary offerings and other capital market activity. This has benefited the industry's top firms, which receive the bulk of their revenue from corporate clientele. In addition, the industry's small- and medium-sized players benefited from a rise in Canadian business formation, which has expanded the overall pool of potential legal clientele. Also, strong growth in... Learn More

10. Industrial Machinery & Equipment Wholesaling in Canada

Total Profit for 2023: $2.9B

Industrial wholesalers distribute a variety of products for multiple industries. These products include hoists, forklifts, diesel engines, pipes and valves. Despite the variety of product offerings, success is ultimately dependent on industrial and manufacturing activity in Canada. Downstream demand was negatively affected by the COVID-19 pandemic, with revenue falling 6.0% in 2020. Favourable economic conditions fuelled industry revenue growth in both 2021 and 2022, as downstream activity increased. Industrial wholesale revenue is expected to grow at a CAGR of 0.6% to $29.3 billion through the end of 2023, despite a dip of 1.0% in 2023 alone.

Growth in revenue alongside growing... Learn More