Market Snapshot: Canada’s evolving energy needs

Release date: 2020-08-05

Canada’s demand for energy can be broken down by economic sector. In 2017, the industrial sector made up 52% of end-use demand^Footnote 1, while the commercial sector made up 12%, the residential 13%, and the transportation sector 23%. Energy demand is driven by variables such as output growth, population growth, energy efficiency, climate policies, and structural changes to the economy. As shown below, energy demand has been growing steadily in Canada over the last two decades. All major sectors have contributed to this growth, although at different rates.

Figure 1. End-use energy demand by economic sector and by province and territory, from 2005 to 2017

Demand from the transportation sector grew by 6% between 2005 and 2017. Energy used for transportation has grown for many reasons, including increasing travel from a growing population and economy, and a shift in consumer preference towards larger vehicles.

Industrial sector demand grew 15% over this time period. This is mostly from growth in the energy used in the oil and natural gas production process, as production of those commodities increased steadily.

Compared to the transportation and industrial sectors, the residential and commercial grew modestly, by 1% and 3%. This is partly due to increases in energy efficiency in those sectors.

It is still unclear what the long-term impacts of the COVID-19 pandemic will be on Canada’s energy demand. So far, self-isolation measures have led to a decrease in energy for transportation and an increase in residential demand for electricity.

Date modified:

2023-11-28