Do you want to earn double-digit returns? Invest in these 10 Most Profitable Canadian Industries of 2023
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Put money in what’s bustling. How many times have you heard of this golden rule of investment? Indeed, it holds. News of GTA brings to you the top ten bustling industries of 2023 that have earned the highest profit.
Whether you are planning to invest in stocks or maybe looking for a private equity venture – these industries can give you double-digit returns. Access the list below:
Top 10 Most Profitable Canadian Industries 2022. Image Credit: ProSofos Inc.
1. Commercial Banking
Profit Earned in 2022: $74.1 Billion
Top Canadian Banks: TD Bank, RBC, Scotiabank, National Bank of Canada, and CIBC
The Canadian economy relies heavily on the commercial banking industry. It earns the highest profit and contributes immensely to the exchequer. Investing in the best Canadian commercial banks can let you earn capital appreciation. Besides, such investments are safe with the lowest chances of default risk.
2. Hospitals
Profit Earned in 2022: $28.1 Billion
Top Canadian Hospitals: Toronto General Hospital, North York General Hospital, Jewish General Hospital, Rockyview General Hospital
High stability, exceptional demand, and provincial funding – the Canadian healthcare system is a boon for investors. Being predominantly public, it receives nearly 75% of its funding from federal and provincial governments. The pandemic also made the healthcare industry a hit by boosting its revenue manifolds.
3. Universities
Profit Earned in 2022: $11.6 Billion
Top Canadian Universities: University of Toronto, University of Alberta, University of Calgary, McGill University, McMaster University
Despite Covid-19 and the lack of funding from the Canadian Government, the industry of universities and colleges still boomed and has shown immense promise. It showed stable growth from 2017 to 2022. As per an estimate, the total revenue to be earned by universities will increase in the years to come. This sector also has a positive outlook.
4. Wireless Telecommunication Carriers
Profit Earned in 2022: $10.9 Billion
Top Canadian Companies: Rogers, Telus, Bell
In Canada, the lion share of the telecom industry lies with Rogers, Telus, and Bell. From 2017-22 the number of smartphone and tablet buyers has increased exponentially. This has led to an increase in the demand for mobile broadband services. Furthermore, the sales forecast for the telecom sector is bright with an expected increase in the annualized revenue earned by these big three companies.
5. Electric Power Transmission
Profit Earned in 2022: $10.1 Billion
Top Canadian Companies: Enbridge Inc, TC Energy Corporation, Cenovus Energy, Tourmaline Oil
Canada has one of the largest electric transmission and distribution networks of about 160,000 km. The three major customers of power are Industrial, Commercial, and Residential. With the need for electricity inelastic, this sector is usually considered evergreen with growth potential. Moreover, the provincial laws support this industry and protect them from significant revenue decline.
6. Renewable Power
Profit Earned in 2022: $8 Billion
Top Canadian Companies: Northland Power, Brookfield Renewable Partners, Algonquin Power Utilities
This sector took a lot of beating due to the Covid-19 pandemic as most of its consumers are commercial industries, which were forced to shut down during the pandemic. However, this sector has still grown and is further anticipated to grow in the years to come. With the Bank of Canada determined to improve the state of the economy, the industrial output is expected to increase in years to come.
7. Oil Drilling and Gas Extraction
Profit Earned in 2022: $7.9 Billion
Top Canadian Companies: Imperial Oil Ltd., Cenovus Energy Inc., Husky Energy Inc., Pembina Pipeline Corporation, Gibson Energy Inc.
The profitability, revenue growth, and product demand are highly dependent on the international prices of crude oil and natural gas. This industry certainly has better times to see, as the prices of both gas and oil are expected to increase in the upcoming years. This will attract higher capital investments in the sector and help in better revenue growth.
8. IT Consulting
Profit Earned in 2022: $7.5 Billion
Top Canadian Companies: Accenture, Archstone Consulting, BCG, Brain & Company, Frost & Sullivan
With the technology sector growing from strength to strength and businesses relying heavily on IT systems, this sector is expected to grow at a rapid pace in the coming period. In Canada, business sentiments are improving, which can increase the demand for industry services and corporate profits.
9. Beer, Wine, and Liquor
Profit Earned in 2022: $6.5 Billion
Top Canadian Companies: Boston Beer Stock, Constellation Brand Stocks, Diamond Estates Wines, Spirit Stocks, Andrew Peller Stock, Big Rock Brewery Stock
The period between 2017 and 2022 saw encouraging signs of an increase in the:
- The disposable incomes and
- Consumer spending
Both levels are critical to support the alcoholic industry as they are related directly to the ability of consumers to afford premium alcohol. As per an estimate, the per capita alcohol consumption is expected to increase in the upcoming years which can boost the industry revenue too.
10. Dentists
Profit Earned in 2022: $5.3 Billion
In 2014, the average household spending on dental services was $430. In 2022, it increased to $430 marking an increase of 7.1% p.a. The spending in dental care already accounts for the second-largest share in private sector medical services consumption. With promising signs, this sector is bound for growth in the upcoming years.
News of GTA is a hyper-local news-based media agency exclusively covering the Greater Toronto Area. Besides covering the latest news, we also write informational blogs. Keep reading more such articles under the money section.
