Canada’s video game industry more than doubled in size between 2013 and 2022, with small, Canadian-owned design studios driving much of the growth, according to a new Statistics Canada report.
The study, released Wednesday, found the number of video game firms in the provinces rose from 775 to 1,628 over the 10-year period, representing a compound annual growth rate of 7.7 per cent. The biggest increase came from Canadian-owned companies, firms focused on game design rather than publishing, and studios with fewer than five employees.
Revenue growth outpaces firm expansion
Industry revenues grew at an even faster pace, more than tripling over the same period for a compound annual growth rate of 13.6 per cent. While foreign-owned companies generated higher revenue overall, Canadian-owned firms posted stronger growth—15.1 per cent compared with 12.7 per cent.
Revenue from design firms grew more than eightfold, while revenues for publishing companies fell. Firms with fewer than five employees and those based in Ontario also posted strong revenue gains. By 2021, administrative data estimated total revenue at $6.7 billion, higher than the $4.3 billion reported by the Entertainment Software Association of Canada, partly because the Statistics Canada study captured a greater number of small firms.
Jobs rise but pandemic slows momentum
Employment in the industry grew steadily, reaching nearly 60,000 jobs in 2022, an increase of 8.0 per cent annually on average. Most of the growth came from design-focused firms, Ontario-based companies, and very small studios. Jobs continued to climb during the early years of the COVID-19 pandemic but declined slightly in 2022. Quebec remained the province with the largest number of industry jobs.
Women’s participation increases gradually
The share of women working in the video game sector rose from 17.8 per cent in 2013 to 24.5 per cent in 2021, while their share of compensation increased from 14.4 per cent to 20 per cent. Statistics Canada noted the compensation gap is partly explained by women entering the industry more recently and starting in lower-paid, entry-level roles.
Firms more stable than private sector overall
The report also found video game firms exited the market at much lower rates than private Canadian firms in general. Entry rates were higher than average in the mid-2010s but slowed in recent years. Exit rates remained consistently below those of the broader private sector, suggesting a relatively stable industry despite its rapid growth.
Statistics Canada said the findings highlight a shift away from publishing toward design, the importance of small firms in the sector’s expansion, and gradual progress on gender representation.
