Canada Cloud Computing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 39.69 Billion |
| Market Size (2029) | USD 85.68 Billion |
| CAGR (2024 - 2029) | 16.64 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Canada Cloud Computing Market Analysis
The Canada Cloud Computing Market size is estimated at USD 39.69 billion in 2024, and is expected to reach USD 85.68 billion by 2029, growing at a CAGR of 16.64% during the forecast period (2024-2029).
- Cloud-based infrastructure provides flexible and on-demand resource access, supporting new digital business solutions. This technology is beneficial for enterprise resource planning (ERP), online transaction processing (OLTP), and supply chain management (SCM) across various sectors.
- Enterprise routers are crucial products used daily by businesses globally. Emerging technologies, such as big data, artificial intelligence (AI), and machine learning (ML), drive the increasing global demand for cloud computing. The growing focus on customer-centric applications to enhance consumer satisfaction also contributes to the rise in these technologies.
- In April 2024, IBM announced its intention to set up a new Cloud Multizone Region (MZR) in Montreal, Quebec. This facility is designed to help clients adapt to evolving regulatory requirements while leveraging technologies such as Generative AI on a secure enterprise cloud platform. The Montreal MZR will comprise three Availability Zones—separate locations within the data center or cloud infrastructure—designed to deliver consistent cloud services, bolster resiliency, and cater to mission-critical workloads.
- The market is also witnessing several investments that significantly drive the adoption of cloud computing. In June 2024, the federal and provincial governments highlighted the importance of the Arbutus Cloud infrastructure for Canadian research. The Digital Research Alliance of Canada allocated USD 10.28 million to revitalize the Arbutus Cloud infrastructure, marking it as one of the nation's five National Host Sites and the country's premier research cloud. Additionally, the Government of British Columbia announced an investment of up to USD 6.14 million to support the renewal efforts for the Arbutus Cloud.
- Organizations increasingly require secure and efficient solutions to facilitate remote work for their employees, including contact center agents and creative professionals. Providers are addressing this need by offering specialized cloud-based solutions that ensure security, timeliness, and cost-effectiveness.
- Cloud computing, a technology that provides on-demand platforms, software, and infrastructure, is vulnerable to various data breaches. When assured of strong security measures, customers still express concerns about outsourcing their data to public cloud services. Despite the efforts of cloud service providers to protect client data, several data breach incidents have affected even the most prominent businesses.
- Surfshark reported that in 2023, Canada recorded over 167,000 exposed data points for every thousand individuals. A global survey in 2023 revealed that 70% of organizations faced a heightened risk of a significant cyberattack within the following year. In Canada, 58% of surveyed Chief Information Security Officers (CISOs) across diverse industries acknowledged the cyberattack risk for their companies in 2023.
Canada Cloud Computing Market Trends
Robust Shift Toward Digital Transformation Across the Country
- Cloud computing furthers innovation by providing access to advanced technologies like machine learning (ML), artificial intelligence (AI), and big data analytics. Organizations can experiment and innovate without significant upfront investments. For example, Canadian fintech companies leverage cloud technology to develop and roll out innovative financial solutions. Companies like Wealthsimple utilize cloud infrastructure to enhance their platform, providing customers with a seamless experience in managing investments.
- As organizations digitize their operations, ensuring data security and regulatory compliance becomes a priority. Many cloud providers offer robust security measures and compliance with regulations, making them attractive to organizations handling sensitive data. For example, Canadian banks and financial institutions increasingly adopt cloud services with strong security frameworks to meet regulatory compliance requirements while ensuring customer data protection.
- The Canadian government encourages digital transformation through initiatives and funding for innovation and technology adoption. This environment supports the growth of cloud computing among businesses. For example, the Canadian Digital Adoption Program (CDAP) provides resources for businesses looking to adopt digital technologies, including cloud solutions, further driving demand in the market.
- Cloud computing enhances digital transformation by evolving it from merely adopting new technology to a comprehensive restructuring of processes, tools, and experiences in a remote, virtual environment. Cloud solutions improve security, enhance user experience, and protect data integrity. Consequently, businesses are increasingly incorporating cloud technologies into their operations, driving the growth of the cloud computing market.
- Cloud computing emerges as a transformative force for businesses aiming to develop supply chain management (SCM) swiftly and effectively. For instance, in March 2024, Oracle unveiled Oracle Smart Operations, introducing enhanced supply chain execution features in its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite. Leveraging technologies like artificial intelligence (AI), these new features in Oracle Fusion Cloud Manufacturing and Oracle Fusion Cloud Maintenance empower customers to boost factory output through increased productivity, improved quality, reduced unplanned downtime, and enhanced operational visibility.
- Since its inception, numerous banking and fintech entities have steadily transitioned to cloud technology. The financial sector is experiencing rapid growth in data creation and utilization. This transition enhances transparency and gives consumers greater control over auditing processes and data management. It offers a more flexible method for data classification.
BFSI End-user Vertical to Grow at a Significant Rate
- Cloud computing enables BFSI organizations to automate processes and minimize reliance on on-premises infrastructure. This operational efficiency is vital in a sector where time directly translates to money. For instance, in June 2024, Kyndryl announced an extended partnership with the National Bank of Canada to accelerate its cloud migration and digital transformation. Kyndryl has been supporting the National Bank’s critical infrastructure for many years and is working with the bank to modernize its environment to streamline workloads and operations, reduce technical debt, and innovate across the organization.
- BFSI firms frequently adjust their IT resources based on demand, particularly during peak periods like tax season or fiscal year-end. Cloud computing provides the agility to scale without incurring hefty upfront costs. For example, Wealthsimple, a Canadian fintech, leverages cloud computing to scale its platform in response to fluctuating user demand, especially during market volatility spikes.
- The BFSI sector faces stringent regulations, and cloud service providers come equipped with compliance features to help organizations align with the mandates of Canadian financial authorities. In 2024, Intellect Design Arena Ltd, a cloud-agnostic, future-ready, multi-product Financial Technology company for banks, credit unions, and insurance clients, announced the launch of the Canada eMACH.ai Cloud for Banks and Credit Unions. This comprehensive suite of products spans Digital Engagement, Liquidity, Virtual Accounts, and Core Banking (including Payments and Deposits), with embedded AI, allowing financial institutions to tailor their digital experiences to meet and exceed customer expectations and fuel growth. All these products are Canada-ready and live with Canadian customers.
- As cyber threats loom larger in the financial realm, the enhanced security measures of cloud service providers become increasingly appealing. These providers often deploy advanced security technologies, sometimes beyond the reach of individual financial institutions. For instance, Sun Life Financial adopted cloud-based security measures, bolstering client information protection and reinforcing trust with its customer base.
- Cloud computing facilitates the processing and analysis of large volumes of data, enabling BFSI organizations to derive actionable insights that can drive business decisions, improve customer service, and enhance risk management. For example, in May 2024, the Royal Bank of Canada had four patents in the cloud during Q1 2024. The Royal Bank of Canada filed patents for deploying containerized applications to multiple cloud environments by consulting a routing table to determine network paths and a system to categorize virtual machines and associated applications into groups based on the feasibility of hosting processes in containers. These inventions aim to streamline deployment and migration processes for applications in cloud environments.
Canada Cloud Computing Industry Overview
The Canadian cloud computing market is experiencing notable fragmentation, with numerous players competing for market share. Many companies form strategic partnerships and expand into new markets to strengthen their positions. Key players include industry leaders such as Amazon Web Services, Google LLC, Microsoft Corporation, Alibaba Cloud, and Salesforce Inc.
- June 2024: Oracle and Google Cloud announced a strategic partnership, allowing customers to integrate Oracle Cloud Infrastructure (OCI) with Google Cloud technologies. This collaboration aims to accelerate the migration and modernization of applications. Google Cloud's Cross-Cloud Interconnect will be available in 11 global regions, enabling customers to deploy general workloads without cross-cloud data transfer fees. Later this year, Oracle Database@Google Cloud is expected to be introduced. This new offering will provide the highest Oracle database performance and network capabilities, with feature and pricing parity with OCI.
- May 2024: Applied Cloud Computing (ACC), a cloud consulting and services company, announced a strategic partnership with Oracle Inc., a prominent cloud infrastructure provider, and RackWare Inc., a specialist in enterprise cloud migration and management. This partnership aims to deliver a comprehensive solution for businesses to manage and migrate their workloads in the cloud, including using Oracle Cloud Infrastructure (OCI).
Canada Cloud Computing Market Leaders
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Amazon Web Services, Inc
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Google LLC
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Microsoft Corporation
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IBM Corporation
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Oracle Corporation
*Disclaimer: Major Players sorted in no particular order
Canada Cloud Computing Market News
- April 2024: IBM launched a multizone cloud region in Montreal, Canada. The region had three availability zones in the city in the south of Quebec. IBM stated the facility was designed to help Canadian enterprises address their evolving data sovereignty requirements and leverage technology such as generative AI.
- March 2024: OVHcloud US announced the opening of its parent company's second Canadian site, marking the Group's 42nd data center. This expansion came with a significant long-term investment of CAD 145 million. The newly inaugurated data center in Toronto, consistent with OVHcloud's global network, was made directly accessible to OVHcloud US customers. It promised enhanced latency benefits over the existing OVHcloud facility near Montreal and the one in Vint Hill, Virginia. This latest data center launch underscored OVHcloud's growing presence and momentum in the United States and broader North American markets.
Canada Cloud Computing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Robust Shift Toward Digital Transformation Across the Country
5.1.2 Post-pandemic Remote Work-related Policies Positively Impacting the Cloud Market
5.2 Market Challenges
5.2.1 Regulatory Compliance and Data Breaching Risk
5.3 Pricing Model Analysis
5.4 Overview of Demand Trends of Cloud Computing in Canada
5.4.1 Increased Adoption of Hybrid and Multi-cloud Strategies
5.4.2 Rising Adoption of SaaS Applications
5.5 Number of Data Centers in Canada
5.6 Industry Regulations and Standards for Cloud Computing Market
5.7 Case Study Analysis
5.8 Technology Landscape (Cloud AI, Edge Computing, Quantum Computing in Cloud, and 5G and Cloud Integration)
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Public Cloud
6.1.1.1 IaaS
6.1.1.2 PaaS
6.1.1.3 SaaS
6.1.2 Private Cloud
6.1.3 Hybrid Cloud
6.2 Organization Size
6.2.1 SMEs
6.2.2 Large Enterprises
6.3 End-user Industries
6.3.1 Manufacturing
6.3.2 Education
6.3.3 Retail
6.3.4 Transportation and Logistics
6.3.5 Healthcare
6.3.6 BFSI
6.3.7 Telecom and IT
6.3.8 Government and Public Sector
6.3.9 Other End-user Industries (Utilities, Media & Entertainment, etc.)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Amazon.com Inc (AWS)
7.1.2 Google LLC
7.1.3 Microsoft Corporation
7.1.4 Alibaba Cloud
7.1.5 Salesforce Inc.
7.1.6 Adobe Group
7.1.7 Oracle Corporation
7.1.8 IBM Corporation
7.1.9 DXC Group
7.1.10 SAS
7.1.11 SAP SE
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Canada Cloud Computing Industry Segmentation
Cloud computing is the supply of computing services over the internet, including servers, storage, databases, networking, software, analytics, and intelligence to provide quicker innovation, adaptable resources, and scale economies. Customers usually only pay for their cloud services, which helps save operational costs, run infrastructure more effectively, and scale as business requirements change.
The Canadian cloud computing market report is segmented by type (public cloud [IaaS, PaaS, and SaaS], private cloud, and hybrid cloud), organization size (SMEs and large enterprises), and by end-user industries (manufacturing, education, retail, transportation and logistics, healthcare, BFSI, telecom and IT, government and public sector, and other end-user industries (utilities, media & entertainment, etc.). The market sizes and forecasts are provided in terms of value in USD for all segments.
Canada Cloud Computing Market Research FAQs
How big is the Canada Cloud Computing Market?
The Canada Cloud Computing Market size is expected to reach USD 39.69 billion in 2024 and grow at a CAGR of 16.64% to reach USD 85.68 billion by 2029.
What is the current Canada Cloud Computing Market size?
In 2024, the Canada Cloud Computing Market size is expected to reach USD 39.69 billion.
Who are the key players in Canada Cloud Computing Market?
Amazon Web Services, Inc, Google LLC, Microsoft Corporation, IBM Corporation and Oracle Corporation are the major companies operating in the Canada Cloud Computing Market.
What years does this Canada Cloud Computing Market cover, and what was the market size in 2023?
In 2023, the Canada Cloud Computing Market size was estimated at USD 33.09 billion. The report covers the Canada Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Cloud Computing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Cloud Computing Industry Report
Statistics for the 2024 Canada Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Cloud Computing analysis includes a market forecast outlook for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
