The Billion-Dollar Space Gap: Why Canada Needs Its Own Launch Program

Most of the current space-faring nations are looking for ways that they can improve launch capabilities. In the days when launches were occasional, using other countries’ launch facilities was the most common approach, but as the space industry has grown, it seems to make sense that countries like Canada would at least explore the idea of sovereign launches, rather than relying on partnerships.

The issue has been put into the spotlight with Polaris Aerospace releasing a white paper entitled “The Need For Canadian Sovereign Space Launch”. They are a space business and engineering consulting firm, and have now called for a sovereign launch capability to be introduced.

What Has Led to the Shortcoming?

Canada was once at the forefront of space technology, launching the Black Brant rocket and becoming the third nation to build and operate its own satellite. However, despite early advancements, the country never developed a domestic space launch capability. Every Canadian satellite has relied on foreign launch providers, leaving the nation without control over a crucial part of the space industry value chain.

Without a domestic launch sector, Canadian spacecraft operators must send their payloads abroad, resulting in lost economic opportunities and delayed projects. Other G7 nations, including the United States, France, and the UK, have recognised the strategic importance of sovereign launch capabilities. Canada remains the only G7 country without its own launch capability or a government-backed initiative to develop one.

There has been movement in Nova Scotia, as a new launch site is potentially developed for commercial use. A new agreement between Canada and the US was signed in 2024 to allow the use of U.S. space launch technology, expertise and data for space launches in Canada.

Steve Matier, the president and CEO of Maritime Launch Services in Nova Scotia is pushing forward with the plans.

“It is truly key for us going forward here, and it’s something that we’ve been working on behind the scenes and hoping for to get completed,” he said

So it is not like the space industry is dormant in the country, but there are a lot of calls for government-backed programs to help to turn Canada into a launch force, and one that could potentially even launch satellites and craft for other countries.

National Security Considerations

Modern military and defense strategies heavily depend on space assets for communication, surveillance, and intelligence. Without sovereign launch capabilities, Canada risks delays and restrictions imposed by foreign partners. 

A clear example of this was the four-year delay in launching the RADARSAT-2 satellite due to concerns from U.S. intelligence agencies. The delay resulted in a $191 million CAD loss and forced Canada to seek alternative launch options from Russia, something that may be impossible in today’s geopolitical climate.

Other nations prioritise the role of space launch in defense. Germany, France, the UK, and Australia have all integrated launch capability into their defense strategies. The European Union has declared access to space essential for security, while Australia has created a dedicated defense space command. The lack of a sovereign launch capability leaves Canada in a position where it must rely on allies for critical military and surveillance operations.

A Growing Industry Could Bring Profit

A Canadian launch sector would generate significant economic benefits, keeping investment and high-paying jobs within the country. Over the past six years, an estimated $100 million USD was spent on foreign launch services for Canadian satellites. This amount is expected to rise as demand for space access grows.

The U.S. space sector provides a clear example of the economic potential. Launch facilities near Kennedy Space Center alone generate over 9,000 jobs with an average salary exceeding $85,000 USD. Similarly, New Zealand’s Rocket Lab has grown into a $12 billion USD company, demonstrating how a smaller nation can develop a competitive commercial launch industry.

Canada’s space economy has been stagnating, with declining revenues between 2018 and 2022. Deloitte and Space Canada estimate that, with proper investment, the sector could generate $40 billion CAD by 2040, especially with a growing demand for private launch and traffic jams building up at some of the other countries’ launch facilities.

The whitepaper discusses key actions required to make progress, and name drops some of the good work being done in the country already with companies like Maritime Launch Services as well as C6 Launch Systems, NordSpace, and Reaction Dynamics all working on launch systems.

The whitepaper’s blueprint for growth includes the following steps:

• Develop a National Space Strategy: Canada must integrate space launch as a central part of its broader space policy, ensuring that domestic launch services become a priority.
• Increase Government Support and Investment: Direct funding, tax incentives, and contracts for domestic launches would help develop the sector.
• Modernise Regulations: Streamlining the regulatory process would make it easier for companies to launch from Canadian soil.
• Incorporate Space Launch into Defense Planning: National security objectives should include a focus on independent space access.
• Prioritise Domestic Spaceports: Designating launch sites as critical infrastructure would ensure long-term viability and growth.

A sovereign space launch capability would solidify Canada’s position in the global space economy, enhance its national security, and create thousands of high-paying jobs. It will require significant investment but seems to make a lot of sense in the context of the current private sector, as well as Canada’s global position.