Appendix A
APPENDIX A
Four of Québec’s application sectors have been identified according to four criteria:
- PROPENSITY TO INNOVATE: Assessed according to the Science-Metrix analysis regarding patents and scientific publications, as well as the Survey of Innovation and Business Strategies (2023) from Statistics Canada and the Institut de la Statistique du Québec.
- ECONOMIC DECARBONIZATION CONTRIBUTION: Assessed by decarbonization contributions within the company’s own sector, as well as other application sectors and supply chains.
APPENDIX A – ELECTRONICS AND MICROELECTRONICS SECTOR
ELECTRONICS SECTOR
Materials with superior thermal and electrical properties are driving innovation and strengthening demand in the electrical and electronics market[1]. Revenues from this sector could reach $34.6 billion by 2032, with the largest share ($5.8 billion) expected for North America.
Figure 12. 2032 GLOBAL REVENUES IN THE MICROELECTRONICS/ELECTRONICS SECTOR[1]
Geopolitical tensions between the United States, China and Taiwan, as well as supply chain disruptions in the wake of the pandemic, have prompted Europe and North America to invest massively, increasing their semiconductor manufacturing capacity.
Lucrative business opportunities are opening up for Canadian advanced materials and associated processes while the CHIPS and Science Act (2022-2026) has invested $74 billion to repatriate microelectronics manufacturing from Asia to North America. Meanwhile, an integrated North American value chain is growing rapidly, including minerals that are critical to electric vehicle mega-manufacturing, all of which is being fuelled by the Inflation Reduction Act.[2]
Global semiconductor manufacturing capacity will increase by 6.4% in 2024, reaching a record rate of 30 million wafers per month.[26]
CRITICAL MASS IN QUéBEC
Québec has a significant critical mass in the microelectronics/electronics sector. The core of the Québec ecosystem includes companies like IBM-Bromont, Teledyne Dalsa, Matrox, Esterline, MPB and Aeponyx, along with world-class research centres like C2MI and the Institut national d’optique (INO). Another key initiative includes the creation of the Technum innovation zone. This zone brings together a number of companies, academic institutions and research centres to promote collaboration and innovation in key sectors that include microelectronics, artificial intelligence and advanced materials. By 2024, 19% of companies working in advanced materials and associated processes will focus on microelectronics and telecommunications technologies.[5]
Québec is home to a critical mass of world-renowned expertise in research and development, microelectronic/electronic component design and assembly, optics-photonics, along with artificial and quantum intelligence. In 2023, electronics manufacturing accounted for $3.2 billion of Québec’s gross domestic product (GDP) and roughly 36,500 jobs across 730 companies. [28]
DID YOU KNOW?
The Bromont innovation zone is home to a number of microelectronics companies and research centres. Among them, IBM, one of the world’s largest semiconductor manufacturers, owns a major manufacturing facility. [27]
Table 2. PATENTS BY SECTOR OF APPLICATION IN QUÉBEC[3]
The electronics sector in Québec is also characterized by a research and development capacity that is known throughout the world for its assets[28]:
- Several research centres, including C2MI, Institut National d’Optique, 3IT and CMC Microsystems, along with the Centre d’Innovation en Microélectronique du Québec, provide a range of electronics specializations that help diversify innovation.
- Umbrella organizations like Technum Québec ensure sectoral development and collaboration between various stakeholders in the ecosystem, while the Industrie des systèmes électroniques du Québec represents a cluster of excellence in Québec-based electronics.
- Recent investments by the Québec Government totalled CAD$255 million in 2022 to support innovation in the Technum Québec innovation zone. In 2024, investments reached CAD$39.8 million for C2MI and IBM in the same zone. The Government of Canada also invested CAD$24.9 million in 2024 to support the production of components at IBM and C2MI, along with CAD$35 million to upgrade IBM’s semiconductor plant in a joint investment with the Government of Québec.
DID YOU KNOW?
The C2MI (MiQro Innovation Collaborative Centre) is recognized as one of Canada’s leading research and development centres in the field of electronics systems. Located in Bromont, Quebec, it focuses on microelectronics and microsystems, providing state-of-the-art facilities that develop and commercialize advanced technologies. C2MI plays a key role in facilitating collaboration between companies, universities and research organizations to accelerate innovation and technology transfers. [28]
Figure 13. PRIMA QUÉBEC SURVEY RESULTS ON PRIORITY APPLICATIONS IN QUÉBEC’S ELECTRONICS
SECTOR (n=127)
APPENDIX A – ENERGY SECTOR
ENERGY SECTOR
The energy transition is well underway, with global investments totaling $1.8 trillion in 2023[12]. Renewable energies continue to account for a large portion of these investments, totalling $800 billion between 2023 and 2024. The average CAPEX for renewable energies is expected to decline by 15-20% between now and 2030. By 2024, solar energy will lead the way, accounting for 55% of total global investments, followed by onshore wind power[2]. This
dynamic market significantly drives demand for advanced materials and components. In the advanced materials market, energy sector revenues could reach $15.4 billion by 2032 (Figure 7). According to PRIMA Québec’s 2024 report and the companies surveyed, the energy application sector shows the greatest market potential[5].
Several factors will drive development in this market, including:
- Hydro-Québec’s 2022-2026 strategic plan and the forthcoming bill on the private production of renewable energy, which will pave the way to lucrative business opportunities for Québec companies that successfully integrate the supply chain. Similarly, the United States continues to be Québec’s largest market for the export and manufacturing of advanced materials and components involving solar and wind power, despite its protectionist policies[2].
- Multiple roadmaps that prioritize potential technical solutions to reduce or decarbonize the processes used within energy-intensive industries. Typically, these involve the electrification of heat, the use of green hydrogen, the use of biomass as a fuel, along with carbon capture, storage and use[2].
Figure 7. 2032 GLOBAL REVENUES IN THE ENERGY SECTOR[1]
DID YOU KNOW?
According to a Radio-Canada report in July 2024, Hydro-Québec’s first mega-wind farm will be built in the Saguenay-Lac-Saint-Jean region. This project will be the second largest in the world, covering an area 13 times the size of the island of Montréal[13].
CRITICAL MASS IN QUÉBEC
Québec is home to a large critical mass of energy companies supported by major investments and strategic initiatives. Twenty-nine percent (29%) of advanced materials companies in Québec focus on energy as their main area of application[5]. Advanced materials play a key role in several applications, including power line protection, hydrogen production and storage, along with electrolysis and characterization technologies[3].
Our propensity to innovate in the field of advanced materials for the energy sector is remarkable. Québec’s leadership is built upon a robust innovation ecosystem, academic and industrial collaborations, and favourable public policies.
Patents involving advanced materials cover 270 patent families, ranking Quebec third in terms of ingenuity in Canada’s energy sector (Table 2).
The study also indicates that Québec holds research and development expertise in electricity transmission superconductors, new battery materials that use artificial intelligence, clean energy generation materials (solar and wind), power line protection using advanced materials, along with hydrogen production and storage.[3]
Table 2. PATENTS BY APPLICATION SECTOR IN QUÉBEC[3]
DID YOU KNOW?
A joint project between industrial and academic partners led to the creation of next-generation super capacitors that significantly improve energy storage and distribution. The initiative involves the super capacitor= development project at the Hydro-Québec Research Institute (IREQ). These super capacitors are used to stabilize electricity grids by integrating renewable energy sources like solar and wind power, and by improving energy efficiency in electricity transmission systems.
ECONOMIC DECARBONIZATION CONTRIBUTION
Virtually every technology used in Québec’s energy sector reduces dependence on fossil fuels, improves energy efficiency in industrial processes, and contributes to decarbonization. Advanced materials and components for energy storage, turbines, wind turbines and solar panels provide essential contributions.
When developing the Roadmap, PRIMA Québec surveyed companies and organizations that work with advanced materials and associated processes to identify priority applications within the four strategic sectors. For the energy sector, electric batteries were at the forefront.
Figure 8. PRIMA QUÉBEC SURVEY RESULTS ON PRIORITY APPLICATIONS IN QUÉBEC’S ENERGY SECTOR (n=127)
APPENDIX A – ENVIRONMENT SECTOR
ENVIRONMENT SECTOR
MARKET OUTLOOK
Global demand in the environment sector is being driven by the growing need for sustainability and preoccupations regarding the energy transition. Climate change awareness and a recognition of the impacts of environmental technologies represent key levers that drive the advanced materials market[1].
The environmental technology sector will be worth $946 billion by 2030; North America will be its largest market, and the water treatment technology segment will be its largest source of revenue[15].
Figure 9. 2030 GLOBAL REVENUES IN THE ENVIRONMENTAL TECHNOLOGY SECTOR[15]
Several levers promote the development and growth of Québec’s environment sector:
- Policies on sustainable development, energy efficiency, waste, soil and wastewater management, along with a commitment to reduce greenhouse gas (GHG) emissions to 37.5% below 1990 levels by 2030[2].
- A framework that includes a number of structuring laws tackling environmental issues in Québec, including regulations that will increase the number of zero-emission motor vehicles while improving environmental quality, as well as water management and treatment, all of which will require enabling environmental technologies that rely on advanced materials and associated processes[16].
- Québec’s involvement in the Western Climate Initiative in 2008 and its commitment to reduce GHG emissions through a cap-and-trade system. This has attracted investments in clean technologies while stimulating innovation in emissions reduction[17].
CRITICAL MASS IN QUÉBEC
Québec companies hold extensive expertise in the treatment of emissions and effluents, as well as in the 4R principles (reduce, reuse, recycle and recover). Several innovative firms in Québec are working to resolve the challenges associated with reduction at source, reuse, recycling, and recovery. These include Géoméga, Pyrowave, and Polystyvert, among others. The strength of Québec’s environmental consultancy is also recognized on the world stage.
The province is home to a large pool of companies that specialize in environmental engineering, system and equipment manufacturing, along with process design and usage involving air, water, soil and waste treatment, all of which requires advanced materials and associated processes[18]. In addition, 22% of companies that work with advanced materials and associated processes focus on the environment[5].
DID YOU KNOW?
Québec’s sizable critical mass in the environment sector promotes effective collaborations. One example involves the Réseau Environnement, a group of over 200 companies and institutions that specialize in resource management and environmental technologies. Together, these companies are designing innovative projects, like wastewater treatment and advanced materials recycling technologies[19].
PROPENSITY TO INNOVATE
Québec holds 54 patent families in the transport sector. The province’s research and development expertise focuses on lightweight composites, alloys, highsensitivity sensors, 3D printing, and battery materials. Québec’s ingenuity in advanced materials for the transport sector showed a noticeable growth between 2003 and 2020, with one of the highest patent family growth ratios across 16 sectors and sub-sectors[3].
DID YOU KNOW?
One project at the École de technologie supérieure (ÉTS) involves developing biodegradable and functionalized fibres to improve water treatment. These innovative fibres are designed to provide effective and environmentally friendly filtration. By integrating contaminant absorption and adsorption properties, they help purify water in a sustainable manner. Thanks to their biodegradable nature, these fibres reduce the environmental impact of filtration systems, thus meeting the increasing demand for environmentally friendly water treatment technologies[20].
ECONOMIC DECARBONIZATION CONTRIBUTION
Enabling technologies in the environment sector, which rely heavily on materials and processes, reduce carbon intensity and environmental impacts.
The organizations and companies surveyed by PRIMA Québec identified three priority applications in the environment sector: energy efficiency improvements, air pollution and GHG emissions management and reduction, and non-hazardous waste recovery and recycling management.
Figure 10. PRIMA QUÉBEC SURVEY RESULTS ON PRIORITY APPLICATIONS IN QUÉBEC’S ENVIRONMENT SECTOR (n=127)[15]
DID YOU KNOW?
In some sectors, environmental technologies can reduce GHG emissions by up to 70%[21].
APPENDIX A – TRANSPORT SECTOR
TRANSPORT SECTOR
MARKET OUTLOOK
The growing need for lighter components, energy efficiency and lower emissions is a significant factor that drives the demand for advanced materials in the transport sector. Several market segments are experiencing rapid and dynamic growth. According to forecasts, the automotive sector will make up the largest portion of revenues in the advanced materials market by 2032[1].
Figure 11 2032 GLOBAL REVENUES IN THE TRANSPORT SECTOR [15]
According to International Energy Agency (IEA) estimates, the United States will lead the way in meeting the global demand for electric batteries between now and 2032. Canada, however, continues to invest, having completed 66 investment projects between 2014 and 2023, with capital expenditure totalling $33 billion for automotive transport equipment[2].
In addition, a number of provincial and federal government initiatives have led to significant investments in the electric vehicle/battery sector, the introduction of the Vallée de la transition énergétique, and the decarbonization of transport.
DID YOU KNOW?
Three quarters of the $1.8 trillion in global investments for the energy transition in 2023 targeted the transport sector, more specifically electric vehicles[12].
CRITICAL MASS IN QUÉBEC
Forty-eight percent (48%) of companies working in advanced materials and associated processes focus on transport[5]. Québec is home to an emerging electric battery industry, with a number of major industrial projects under construction. Their impact will be felt over the coming decade. According to Bloomberg, Canada has surpassed China as the world’s premier destination for lithium-ion battery manufacturing[12].
Québec has everything it needs to produce the cleanest batteries in North America: natural resources, cutting-edge know-how, a thriving industrial ecosystem, along with a state-of-the-art CSM research network with more than 850 battery-related patents[22].
DID YOU KNOW?
Québec is Canada’s largest aerospace manufacturing centre. The province is home to 61% of all aerospace manufacturing jobs. Québec is also a pioneer in various market segments that involve, among other technologies, flight simulators and helicopter engines[23]. In 2023, the aerospace industry accounted for $4.9 billion of Québec’s GDP, employing 28,000 workers[31] across 81 companies[32]. It is a growth industry driven by increasing defence spending[29]. In Québec, Montréal is a major global aerospace hub, housing a variety of international aviation agencies like the International Civil Aviation Organization and the International Air Transport Association, along with companies like Bombardier, Bell Textron, Pratt & Whitney Canada, CAE and Airbus[29,30].
PROPENSITY TO INNOVATE
Québec holds 54 patent families in the transport sector. The province’s research and development expertise focuses on lightweight composites, alloys, highsensitivity sensors, 3D printing, and battery materials. Québec’s ingenuity in advanced materials for the transport sector showed a noticeable growth between 2003 and 2020, with one of the highest patent family growth ratios across 16 sectors and sub-sectors[3].
DID YOU KNOW?
Lithium iron phosphate (LFP) battery technology has strong roots in Québec. Recognized for its safety, longevity and energy efficiency, this technology was partly developed by Québec researchers and companies. Originating in Québec, this technology is contributing to the global energy transition by offering safer and more sustainable energy storage solutions[24].
ECONOMIC DECARBONIZATION CONTRIBUTION
Advanced materials and associated processes like batteries and light alloys offer enormous potential when decarbonization transportation through the manufacturing of lighter, more efficient vehicles that are less dependent on fossil fuels. Several examples of enabling technologies are making sizable contributions to a decarbonized economy. These include faster-charging batteries, engines that are more resistant to high temperatures and pressures, new and lighter alloys, and conductive materials.
The use of composite materials in vehicles will also significantly reduce GHG emissions. A study by the Automotive and Surface Transportation Research Centre indicates that the use of lightweight composites in car manufacturing can reduce CO2 emissions by up to 20% per vehicle. Materials like carbon fibre composites allow for the manufacturing of lighter vehicles, thus improving their energy efficiency while reducing fuel consumption[25].
