EpTech: Opportunities in Canada’s Electronics Industry

EpTech is Canada’s national electronics product trade show. Operated by EP&T Magazine, Canada’s information leader for electronics engineers and designers, showcases innovative products including test and measurement, wearables, prototyping, robotics, engineering and connectivity.

Eptech hosts a coast-to-coast series of shows in Toronto, Quebec City, Vancouver, Montreal, Calgary and Mississauga and offers a venue to network with a broad-range of exhibitors in the electronics industry to find partnerships for their project needs. 

Canada’s Electronics Industry Overview

According to IBIS World, a well-respected market research resource, Canada’s electronics industry generated $5 billion dollars in revenue in 2023. The electronics component manufacturing and semiconductor sector, classified as ICT manufacturing within Canada’s ICT sector, contributes about 3.8% to the total annual GDP of $125B. Approximately 470 Canadian businesses operate in this sector employing almost 16,000 people.

The sector consists of the following segments:

• Integrated circuits $1.5B (28%)
• Printed circuit assemblies $1.2B (22%)
• Semiconductor devices and parts $1.1B (21%)
• Electric connectors and inductors $609M (11%)
• Bare printed circuit boards $260M (5%)
• Other electronic components $717M (13%)

The Canadian government’s investment of $240 million dollars in the semiconductor industry in 2022 bolstered this sector while the sustained consumer demand for durable goods has made it a crucial contributor to the country’s GDP. 

Key Drivers of the Electronics Industry

Though Canada’s electronics industry experienced a slower growth rate averaging 0.3% increase year-over-year from 2018 – 2023, analysts predict an increase of 1% average growth for the next 5 years. Key indicators of a positive growth trajectory include strong demand for computers and software, a rising number of fixed broadband connections and mobile subscriptions and an increased demand for electrical equipment, appliances and component manufacturing.

The Challenges of Canada’s Electronics Industry

Fierce global competition for lower priced electronic components continue to pose challenges for Canada’s ICT sector. Offshore manufacturers in competitive markets, such as Japan, South Korea, Taiwan and China, that flood the market with lower cost imports displace local manufacturers making it more challenging to compete at a global level. 

Despite investments in some areas of the ICT sector, domestic production still remains inadequate to fulfill the needs of domestic producers. The rapid technological advancements in the industry combined with a lack of investment in R&D has stunted Canada’s electronic industry potential for faster growth. 

Though many domestic manufacturers are making efforts to reshore manufacturing to shield against the risks associated with offshore sourcing and manufacturing, the reality is stark. The lack of skilled labour, inadequate infrastructure, insufficient technology investment, strict regulations and higher production costs, make it difficult for Canada to compete on the world stage in the short term.

Seizing the Opportunity at EpTech

Companies operating in the electronics industry in Canada, have a silver lining. A lower currency exchange against the US dollar makes demand for Canadian products favorable, while high barriers to entry protect Canadian electronic companies from intense industry competition in certain segments. Additionally, sustained domestic demand for consumer electronics and the government’s funding of the sector will continue to support the industry’s growth.

To seize these growth opportunities, OEMs of consumer products can tap into the electronics engineering talent available in Canada’s electronics sector by partnering with companies that have a strong global network of local and offshore suppliers. 

Avnan is attending the EpTech show to connect with OEMs seeking such partnerships, combining extensive manufacturing capabilities with the electronics design expertise necessary to realize their product visions.

Meet us at the show or contact us to book a meeting.  We’d love to hear about your current or upcoming project. Follow us on social media on X or LinkedIn to get the latest updates about Avnan.