Market Trends of Canada Digital Transformation Industry
Cybersecurity is Expected to Drive the Market Growth
- Canada is actively embracing advanced technologies, such as 5G, to enhance its networking infrastructure. This shift is propelling digitalization on a broader scale, amplifying data processing capabilities and, consequently, the associated vulnerabilities. Consequently, the market has seen a surge in new entrants, catering to businesses of all sizes.
- The Canadian government has taken significant steps to enhance the nation's cybersecurity capabilities. These efforts encompass investments, revised regulations to aid businesses in digital transformation, and a host of other initiatives aimed at fortifying Canada's cybersecurity landscape. In May 2024. the Canadian government launched its first-ever cybersecurity strategy to address challenges posed by remote work, cloud computing, aging infrastructure, and recruitment. Additionally, the government plans to establish a security operations center (SOC) to monitor on-site, cloud, and network-connected devices across departments and agencies.
- The Canadian Anti-Fraud Centre reported over 150,000 cases of fraud in Canada since January 2021, resulting in approximately USD 600 million in losses. In 2023, the Centre received 63,519 reports from 41,988 victims, leading to losses of USD 569 million. These incidents spanned cybercrimes like malware and ransomware attacks, phishing scams, and data breaches. The repercussions have reverberated across businesses, government entities, and individuals grappling with the fallout of fraud and identity theft.
- According to SurfShark, Canada experienced numerous data breaches affecting internet users from 2004 to January 2024. Passwords were the most frequently compromised data, followed by usernames. Password hashes were the third most commonly breached data type. These significant breaches expose users' critical information, resulting in substantial losses and compromising data privacy. Advanced cybersecurity solutions can effectively prevent such incidents.
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IT and Telecom Sector is Expected to Witness Major Growth
- 5G technology is set to drive industry digitalization, create new value across industries and society, and have a direct economic impact on the ICT sector. It will also integrate with advanced solutions like augmented reality, the Internet of Things (IoT), and Artificial Intelligence (AI). To harness the benefits of 5G, players in the region are launching new 5G services.
- For instance, according to GSMA, by 2025, 5G connections are expected to account for 49% of all mobile connections in Canada. All telecommunication providers are rolling out 5G networks nationwide to offer better network services to their clients and maximize the technology's potential.
- According to the Canadian Wireless Telecommunications Association (CWTA)/Accenture report, the introduction of 5G networks and services in Canada by 2026 will boost GDP by an additional USD 40 billion and create 250,000 long-term jobs. However, this advancement will cost wireless carriers approximately USD 26 billion. Significant investments by Canadian facilities-based carriers highlight the nation's ambition to establish itself as a significant player in wireless technology.
- According to Salesforce, in Canada, the proportion of revenue for business-to-business (B2B) entities generated through digital channels rose from 32% in 2021 to 42% in 2023. This trend is set to persist, with digital channels forecasted to contribute 53% of the revenue by 2025.
- In January 2024, Ericsson and Canadian telecom firm Telus partnered to roll out and enhance Telus's 5G Standalone (5G SA) network on a national scale. The advanced network, powered by Ericsson's cloud-native, dual-mode 5G core solution, will enable a range of advanced 5G services. Telus's 5G SA network will drive innovation across Canada, from supporting autonomous vehicles to improving public safety and healthcare technologies.
