Thank you for the opportunity to make a presentation to the committee today. The study of the Canadian defence industrial strategy is important and timely.
My name is Michael Greenley. I'm the CEO of MDA Space, Canada's largest space company. We are a global leader in digital low-earth orbit satellite manufacturing; earth and space observation, with flagship programs RADARSAT and Sapphire; and space robotics and operations, with almost 45 years of Canadarm heritage. We have 3,800 employees across Canada, with a growing presence in the United Kingdom and offices in United States, Europe and Israel.
I would like to cover two related items today: first, the world-class quality and breadth of Canada's space industrial capability; and second, the enormous untapped potential of this sector in Canada's national security, its foreign and defence policy, its defence investment program and its future economic security.
For over 60 years, Canada has invested in a civil and defence space program in order to achieve its national goals to connect Canadians from coast-to-coast via satellite-based telecommunications and broadcasting, to monitor our large land mass and coastal approaches, and to explore, utilize and monitor space while burden sharing with key allies. A priority element of early national space policies in the 1960s and 1970s was to build a domestic space industry capable of building Canada's own space systems. Canada's present-day space industry is, therefore, the product of one of the county's earliest and most successful industrial strategies, with world-leading expertise representing a sovereign industrial capability that is sought out by governments and commercial customers from around the globe.
MDA Space is a result of three strategic decisions by Canada: to have space-based communications across the country, to use synthetic aperture radar to survey the maritime approaches to the country, and to contribute Canadarm to the space shuttle and the space station. As a result of those specific choices, MDA Space is now the world leader in space communications, radar-based earth observation and space-based robotics.
It's not just MDA Space. Canada's space industry includes world-renowned companies like MDA Space, Telesat, GHGSat, Calian and Kepler, along with a vibrant small and medium-sized business community, including SkyWatch, Terrestar Solutions and Mission Control. Collectively, we can develop, build and operate complex space systems, all from within our domestic borders. With commercial spaceports and rocket manufacturers—like Maritime Launch Services, Reaction Dynamics and NordSpace—quickly making progress, Canada will soon have launch capability, an important milestone that will complete our country's end-to-end space industry capability. There is little we cannot do.
In the past few years, a new and more commercially oriented space era has emerged, in which nations, along with their industry, are moving swiftly, decisively, strategically and in partnership to gain a foothold in this rapidly expanding sector. Catalyzed by the drastic reduction in the cost of launching satellites into space, the space economy is projected to grow from $600 billion in 2024 to $2 trillion by 2035, representing one of the fasting-growing and innovative industrial sectors in the world. Countries are partnering with commercial companies to quickly and efficiently bring sovereign space capability to market.
With rising geopolitical instability, global government expenditures on military space programs surpassed spending on civil space programs in 2023 for the first time, highlighting the growing importance of space to national security. Allied governments have recognized the power of partnering with their innovative space companies to jointly develop space and satellite missions, using alternative procurement processes that enable speed. In the context of a historic geopolitical shift, Canada's new government committed in June to reaching our 2% NATO target by March and to reach 5% by 2035. I commend Prime Minister Carney and his government for this significant commitment, which has the potential for far-reaching transformation of Canada's economy and national security.
To maximize this investment, Canada should focus on key areas of national strength where industry has the capacity to quickly deploy nationally significant and allied-relevant capabilities, with the potential to be a joint force multiplier. Canada's space industry meets these criteria and can enable one of the quickest paths between decisions and outcomes in areas like advanced military satellite communications; C4ISR; space domain awareness; position, navigation and timing, or PNT; and responsible counterspace operations.
By working with Canadian space industry leaders as strategic partners and leveraging dual-use commercial space technology, Canada can dramatically accelerate the design and delivery of required sovereign space capabilities to deliver advanced space missions at the speed of relevance. If new procurement approaches are empowered, this can be performed without significant demand on DND staffing capacity, as industry can design, build, operate and maintain these turnkey space systems under defence command and control or as a commercial service to DND.
Investing in space defence capabilities will not only enable Canada to protect and assert its sovereignty but will also serve to enhance Canada's economic security and high-tech sustainability with future prosperity.
Thank you for this opportunity. I look forward to your questions.