Canada ICT Market Size (2024 - 2029)

Canada ICT Market Analysis

The Canada ICT Market is expected to register a CAGR of 7% during the forecast period(2024-2029).

• According to StatCan, In 2023/24, it is expected that the federal government of Canada will spend around CAD 15.07 billion (USD 11.67 billion) on scientific and technological activities. This increased from 2000/01 when the Canadian government spent CAD 6.39 billion (USD 4.72 billion) on scientific and technological activities. Further, The Canadian federal government released budget 2023 at the end of March, and new clean technology tax credit programs came with it. The budget outlined a USD 83 billion allocation for the new clean tech programs over the next decade.
• •In the October 2023 edition of Open Access Government provided necessary background about Budget 2018, where new investments of almost USD 4 billion in five years support Canada’s next generation of researchers and scientists. Speeding up drug discovery With this background of budgets for research funding, let’s find out what the Government of Canada has highlighted in the field lately. For example, the government is committed to promoting innovative technologies and approaches to speed up drug discovery and create new drugs and effective therapies for Canadians. Investment through the Strategic Innovation Fund to create the Conscience Open Science Drug Discovery Network seeks to fill drug and therapeutics development gaps. This is especially the case regarding traditional market failures, such as antivirals for pandemic readiness, antimicrobial resistance drugs, and rare and pediatric drugs.
• Moreover, in March 2023, the federal government’s proposed budget includes over USD 61 million for fighting foreign interference, hazards, and covert activities to combat online activity. The proposed budget gives Public Safety Canada USD 13.5 million over five years, starting in 2023-24, and then USD 3.1 million yearly to establish a National Counter-Foreign Interference Office. The budget also proposes giving the RCMP USD 48.9 million over three years, starting this fiscal year, to protect Canadians from harassment and intimidation, improve its investigative capacity, and more proactively encounter communities at greater risk of being targeted.
• Further, 5G technology is expected to drive industry digitalization, create new value across industries and society, and have a direct economic effect on the ICT sector. 5G technology can also fuse 5G networks with advanced solutions like augmented reality, Internet of Things (IoT), and Artificial Intelligence (AI). To capture the benefits of 5G players in the region are new 5G services. For instance, According to GSMA, In 2025, 5G connections are forecast to account for 49% percent of all mobile connections in Canada. All telecommunication providers have been rolling out 5G networks nationwide to offer better network services to their clients and maximize such technology's potential.
• On the flip side, Artificial Intelligence (AI) presents one of the most promising and potentially transformative opportunities for the life sciences industry. AI would be a key investment target in the coming years, with myriad organizations hoping to capitalize on its potential. The number of applications is expected to continue to increase, and investors are expected to enter the AI industry early. However, at the start-up stage, AI investment can pose a risk to a company's growth. Huge cash injections are required to launch robust AI products off the ground, and it is not a sector that can be monetized either very quickly or easily. Often, these products require R&D teams and specialist engineers in machine learning, which would come at a cost.
• The COVID-19 pandemic caused economic disruptions across the country. The closure of several production facilities, plants, manufacturing, and other industries. The COVID-19 pandemic has led the government and organizations to invest more in technologies such as AI, IoT, Big Data, and more, as they have become more beneficial for the diagnosis of viruses and treatment, to mitigate the risk of economic crisis, etc. However, digital technology and connectivity have become essential during the pandemic, mainly in work-from-home scenarios.

Canada ICT Industry Segmentation

Information and Communication Technologies or ICT is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services enabling users to store, access, transmit, retrieve, and manipulate information in a digital form.

The Canadian ICT market is segmented by type (hardware, software, IT services, and telecommunication services), by the size of the enterprise (small and medium enterprise and large enterprise), by industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, and energy and utilities). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.