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Canada Digital Transformation Market Size (2024 - 2029)

The Canada Digital Transformation Market is poised for substantial growth, driven by the adoption of emerging technologies and innovative business models. Government initiatives aimed at creating a "digital nation" and enhancing digital infrastructure are expected to boost investment and technology adoption. The integration of artificial intelligence and IoT devices is set to transform various industries, further contributing to the market's expansion. Despite the steady growth of the information and communications technologies sector, a significant shortage of digital skills poses challenges for businesses, impacting Canada's competitiveness in the global digital landscape.

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Market Size of Canada Digital Transformation Industry

Canada Digital Transformation Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 59.02 Billion
Market Size (2029) USD 183.06 Billion
CAGR (2024 - 2029) 25.41 %
Market Concentration Low

Major Players

Canada Digital Transformation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Digital Transformation Market Analysis

The Canada Digital Transformation Market size is estimated at USD 59.02 billion in 2024, and is expected to reach USD 183.06 billion by 2029, growing at a CAGR of 25.41% during the forecast period (2024-2029).

  • Canada's digital transformation is driven by adopting emerging technologies, developing innovative business models, and focusing on collaboration and innovation. The Canadian government has set ambitious targets, such as creating a "digital nation" and adopting a digital charter. These initiatives are expected to spur further investment in digital infrastructure and the adoption of new technologies.
  • Artificial intelligence (AI) is a major technological advancement in the present era. It offers substantial potential for economic growth, significant productivity improvements, and new opportunities across industries in the country. In June 2024, the government announced the Consultation on Artificial Intelligence (AI) Compute, which will help inform the design and implementation of a new AI Compute Access Fund and a Canadian AI Sovereign Compute Strategy proposed in Budget 2024. The consultation includes the AI Blueprint, a discussion paper that outlines Canada’s opportunity and ambition on AI.
  • IoT devices, such as smart sensors and connected devices, are set to transform industries like manufacturing, transportation, and logistics. This transformation is expected to drive increased investment in digital infrastructure and the creation of new business models.
  • Moreover, Canada's information and communications technologies (ICT) industry has experienced steady and significant growth over the years. In 2023, revenues in the ICT sector reached CAD 270 billion, reflecting a substantial increase from CAD 206.8 billion in 2018. This growth highlights the sector's expanding influence and its critical role in the Canadian economy, which is expected to drive digitalization needs across the country.
  • However, Canada is experiencing a significant shortage of digital skills, causing many businesses to struggle to find qualified professionals for digital roles. This gap hampers Canada's ability to compete in the global digital economy.

Canada Digital Transformation Industry Segmentation

Digital transformation leverages digital technologies such as artificial intelligence and machine learning, extended reality (XR) for industrial applications, and IoT, among others, to create new business processes or modify existing ones, reshape organizational culture, and enhance customer experiences.

Canada's digital transformation market is segmented by type (analytics, artificial intelligence, and machine learning, extended reality (XR), IoT, industrial robotics, blockchain, additive manufacturing/3D printing, cyber security, cloud edge computing, and others (digital twin, mobility and connectivity), end-user industry (manufacturing, oil, gas, and utilities, retail & e-commerce, transportation and logistics, healthcare, BFSI, telecom and IT, government and public sector, and Other End-user Industries (Education, Media & Entertainment, Environment etc)). The market sizes and forecasts are provided in terms of value in (USD) for all the above segments.

By Type
Analytics, Artificial Intelligence and Machine Learning
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Extended Reality (XR)
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
IoT
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Industrial Robotics
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Blockchain
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Market Outlook
Additive Manufacturing/3D Printing
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Cybersecurity
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Cloud Edge Computing
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
Others (digital twin, mobility and connectivity)
Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Market Breakdown by Type (Digital Twin, Mobility and Connectivity)
Use Case Analysis
Market Outlook
By End-user Industry
Manufacturing
Oil, Gas, and Utilities
Retail & e-commerce
Transportation and Logistics
Healthcare
BFSI
Telecom and IT
Government and Public Sector
Other End-user Industries (Education, Media & Entertainment, Environment etc)
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Canada Digital Transformation Market Size Summary

The Canada Digital Transformation Market is experiencing significant growth, driven by the adoption of emerging technologies and innovative business models. The government's initiatives, such as the digital charter and the goal of becoming a "digital nation," are fostering investments in digital infrastructure. Key technologies like artificial intelligence, IoT, and 5G are playing pivotal roles in this transformation, enhancing productivity and creating new business opportunities. The ICT sector's steady growth underscores its critical role in the economy, although a shortage of digital skills poses challenges for businesses seeking to compete globally. The market is also witnessing increased cybersecurity efforts to address vulnerabilities associated with digitalization.

The competitive landscape of Canada's Digital Transformation Market is marked by the presence of major players like IBM, Microsoft, and Ericsson, who are actively expanding their operations and collaborating to strengthen their market positions. The rollout of 5G networks is expected to drive further digitalization, integrating with advanced solutions such as augmented reality and AI. This technological advancement is anticipated to have a substantial economic impact, boosting GDP and creating jobs. Companies are also focusing on enhancing IT infrastructure and connectivity to support growth and innovation. Despite the challenges, the market's trajectory indicates a robust expansion, with digital channels increasingly contributing to business revenues.

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Canada Digital Transformation Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increase in the Adoption of Big Data Analytics and Other Technologies in the Country

      2. 1.1.2 The Rapid Proliferation of Mobile Devices and Apps

    2. 1.2 Market Restraints

      1. 1.2.1 Concerns About the Privacy and Security of Information

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Analytics, Artificial Intelligence and Machine Learning

        1. 2.1.1.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.1.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.1.3 Use Case Analysis

        4. 2.1.1.4 Market Outlook

      2. 2.1.2 Extended Reality (XR)

        1. 2.1.2.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.2.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.2.3 Use Case Analysis

        4. 2.1.2.4 Market Outlook

      3. 2.1.3 IoT

        1. 2.1.3.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.3.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.3.3 Use Case Analysis

        4. 2.1.3.4 Market Outlook

      4. 2.1.4 Industrial Robotics

        1. 2.1.4.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.4.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.4.3 Use Case Analysis

        4. 2.1.4.4 Market Outlook

      5. 2.1.5 Blockchain

        1. 2.1.5.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.5.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.5.3 Market Outlook

      6. 2.1.6 Additive Manufacturing/3D Printing

        1. 2.1.6.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.6.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.6.3 Use Case Analysis

        4. 2.1.6.4 Market Outlook

      7. 2.1.7 Cybersecurity

        1. 2.1.7.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.7.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.7.3 Use Case Analysis

        4. 2.1.7.4 Market Outlook

      8. 2.1.8 Cloud Edge Computing

        1. 2.1.8.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.8.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.8.3 Use Case Analysis

        4. 2.1.8.4 Market Outlook

      9. 2.1.9 Others (digital twin, mobility and connectivity)

        1. 2.1.9.1 Current Market Scenario and Market Projections for the Forecast Period

        2. 2.1.9.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)

        3. 2.1.9.3 Market Breakdown by Type (Digital Twin, Mobility and Connectivity)

        4. 2.1.9.4 Use Case Analysis

        5. 2.1.9.5 Market Outlook

    2. 2.2 By End-user Industry

      1. 2.2.1 Manufacturing

      2. 2.2.2 Oil, Gas, and Utilities

      3. 2.2.3 Retail & e-commerce

      4. 2.2.4 Transportation and Logistics

      5. 2.2.5 Healthcare

      6. 2.2.6 BFSI

      7. 2.2.7 Telecom and IT

      8. 2.2.8 Government and Public Sector

      9. 2.2.9 Other End-user Industries (Education, Media & Entertainment, Environment etc)

Canada Digital Transformation Market Size FAQs

The Canada Digital Transformation Market size is expected to reach USD 59.02 billion in 2024 and grow at a CAGR of 25.41% to reach USD 183.06 billion by 2029.

In 2024, the Canada Digital Transformation Market size is expected to reach USD 59.02 billion.

Canada Digital Transformation Market Report Snapshots

Canada Digital Transformation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)