Engine & Turbine Manufacturing in Canada: Market Size, Businesses & Forecast 2026

The Canadian Engine & Turbine Manufacturing industry (NAICS 3336) is a vital sector focused on producing, servicing, and modernizing industrial turbines, non-automotive internal combustion engines, and power transmission gears. According to Innovation, Science and Economic Development Canada (ISED), the sector generated shipments of 2.0 billion CAD in 2023, while total salaries reached 419.2 million CAD in 2023. The industry operates with a high level of global integration, posting exports of 6.1 billion CAD and imports of 7.9 billion CAD in 2024, the latest year of available trade data. Driven by the clean energy transition, the sector's direction is increasingly shaped by public and privat

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What does the Engine & Turbine Manufacturing in Canada industry cover?

This industry group in Canada encompasses establishments primarily engaged in manufacturing turbines, turbine generator sets, and non-automotive/non-aircraft internal combustion engines. It also includes the production of mechanical power transmission equipment such as speed changers, drives, and industrial gears. The rebuilding, servicing, and remanufacturing of these complex systems are classified within the same industrial scope.

• •Classified officially under the North American Industry Classification System (NAICS) Canada code 3336.
• •Explicitly excludes automotive gasoline engines (NAICS 336310) and aircraft engines (NAICS 336412).
• •Covers hydro-power turbine systems, heavy-duty industrial engines, and wind-turbine components.

Who operates in the industry and how is it structured?

The industry comprises a mix of small localized businesses and a select few large multinational companies operating regional facilities. As of 2025, ISED tracked 217 active establishments in this sector across Canada. The geographic concentration of these businesses is heavily weighted towards Central Canada, with Ontario and Quebec hosting the vast majority of employer operations.

• •Out of 217 total establishments in 2025, 92 were non-employers or indeterminate, while 125 maintained one or more employees.
• •Ontario hosted 45 employer establishments in 2025, followed by Quebec with 35, and British Columbia with 20.
• •Small businesses (5 to 99 employees) made up 56.8% of employers, while large employers (500+ employees) comprised 2.4% of the industry in 2025.

What drives demand in the industry?

Primary demand for engines and turbines in Canada stems from the utility, energy, and heavy industrial sectors. Investment in clean power generation, including municipal waste-to-energy facilities, large-scale hydroelectric modernizations, and wind power expansion, directly drives turbine procurement. Additionally, international trade-weighted activity serves as an essential channel for specialized Canadian-made components.

• •Supported by provincial power utility procurement and decarbonization projects (e.g., Ontario Power Generation, Manitoba Hydro).
• •Strong export market demand led to Canadian exports reaching $6.1 billion CAD in 2024.
• •Substantial reliance on imported parts and complete generator systems, with imports valued at $7.9 billion CAD in 2024.

Who are the notable companies in the industry?

Canada's competitive environment is characterized by the presence of global industrial giants with localized manufacturing or service footprints, alongside niche domestic suppliers. Major multinationals manufacture, service, or overhaul engine and turbine parts within Canadian borders, particularly in key aerospace and energy hubs. Domestic operators often focus on highly specialized engineering niches, such as customized run-of-river hydro turbines.

• •Siemens Energy Canada Limited operates a 14,000 square meter aero-derivative gas turbine (AGT) facility in Montreal, specializing in manufacturing and overhauling gas generators.
• •GE Vernova maintains significant Canadian operations, servicing massive hydroelectric units like Manitoba Hydro's Grand Rapids station and upgrading utility infrastructure.
• •Norcan Hydraulic Turbine Inc., a specialized Canadian manufacturer based in Carleton Place, Ontario, designs and modernizes hydro turbines in the 200 kW to 30 MW range.
• •Linamar Corporation, a major Canadian public manufacturer, participates in the broader drivetrain sphere through the precision machining of engine, gear, and transmission components.

What are the recent trends and outlook?

The industry is undergoing a structural shift toward zero-emission and low-carbon technologies, necessitating significant capital investments in facility upgrades. Federal and provincial clean energy goals have prompted major investments in next-generation propulsion systems and nuclear steam turbine modernizations. Meanwhile, supply chain realignment and localized clean energy sourcing have become strategic priorities.

• •General Motors Canada committed significant investments, including C$691 million in its St. Catharines propulsion plant, for next-generation engine and propulsion manufacturing.
• •Bruce Power signed an exclusive agreement with Siemens Energy Canada to manufacture and supply new high-pressure steam turbines for its Bruce A nuclear generating units.
• •In 2025, wind turbine manufacturer Vestas reported spending $120 million CAD across more than 200 Canadian suppliers, highlighting local component supply chain growth.

How is the industry regulated?

Manufacturers must navigate stringent environmental, safety, and performance standards enforced by federal and provincial regulators. Emissions regulations are closely aligned with both Environment and Climate Change Canada (ECCC) standards and United States Environmental Protection Agency (EPA) harmonized protocols. Safety certifications for heavy machinery, pressure vessels, and generator units are strictly monitored.

• •Compliance with Canada's Off-Road Compression-Ignition Engine Emission Regulations, which govern emissions for heavy-duty diesel engines.
• •Adherence to industrial manufacturing standards such as those from the Canadian Standards Association (CSA) and international standards like ISO 9001 and ISO 14001.
• •Fuel tanks and storage equipment built for generator sets must meet safety specifications under UL 142 and ULC-S601 standards.

Government, statistical and trade sources used for this Claight analysis.

• Innovation, Science and Economic Development Canada (ISED) Canadian Industry Statistics 2025 ·
• Statistics Canada, Annual Survey of Manufactures and Logging 2023 ·
• Statistics Canada, North American Industry Classification System (NAICS) Canada 2022