Canada ICT Market (2026-2031) - Growth Driven By Accelerating Digital Transformation
Dublin, Sept. 11, 2026 (GLOBE NEWSWIRE) -- "Canada ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Canada ICT Market Forecast to Reach USD 206.47 Billion by 2031 as AI, Cloud and Broadband Investments Accelerate
The Canada ICT market is projected to grow from USD 136.69 billion in 2025 to USD 146.42 billion in 2026. By 2031, the market is forecast to reach USD 206.47 billion, expanding at a compound annual growth rate of 7.12% from 2026 to 2031. Growth is being supported by generative artificial intelligence investment, cloud migration, broadband expansion, cybersecurity requirements and increased digital adoption among Canadian enterprises.
Federal AI Investment Supports ICT Market Transformation
Canada's USD 2.4 billion federal artificial intelligence package has strengthened the country's position among the world's leading AI ecosystems. However, only 26% of Canadian enterprises have adopted AI tools, compared with 34% globally, indicating substantial potential for further implementation across the economy.
Microsoft's planned USD 80 billion AI-enabled region is estimated to generate USD 187 billion in economic output by 2030 while expanding hyperscale capacity in Toronto. Provincial initiatives are also contributing to the development of Canada's AI sector. Quebec has allocated USD 11 million to 15 industry-focused AI projects and established innovation zones such as DistriQ, which connects academic institutions, startups and established businesses working in quantum technologies.
AI investment is increasingly moving beyond technology companies into healthcare, manufacturing, financial services and the public sector. Canadian vendors are targeting productivity improvements of 30% to 40% through tailored AI implementations. These projects are expected to increase demand for high-performance computing, data infrastructure, cloud platforms, cybersecurity solutions and professional IT services, creating long-term opportunities across the Canada ICT market.
Universal Broadband Fund Expands Rural Digital Infrastructure
The USD 3.2 billion Universal Broadband Fund is targeting 98% national coverage by 2026, with fiber infrastructure playing a central role in improving connectivity. Expanded broadband access will support telehealth, online education, remote work, digital government services and cloud-based commerce in underserved, Indigenous and northern communities.
As more households and businesses gain access to reliable high-speed connectivity, small and medium-sized enterprises are expected to increase their use of cloud applications and digital services. This expansion will generate additional demand for managed networks, cybersecurity services, software-as-a-service platforms and digital billing solutions. The initiative is also expected to help reduce Canada's urban-rural digital divide while creating recurring revenue opportunities for ICT providers.
Technology Talent Shortage Remains a Key Constraint
Despite strong market demand, Canada continues to face a shortage of qualified technology professionals. Approximately 68% of employers report recruitment difficulties, while unemployment among workers in digital roles remains below 3.3%. Cybersecurity represents a particularly significant challenge, with an estimated need for 26,000 additional professionals by 2025.
Talent shortages are increasing wage pressure, constraining technology budgets and extending project delivery timelines, especially for smaller organizations. Provincial bootcamps, micro-credential programs and workforce development initiatives are helping address the issue, although gaps remain between academic training and the technologies used by enterprises. The shortage is encouraging greater automation but may moderate near-term Canada ICT market growth.
Other influential market factors include rapid SME cloud migration, continued data-center investment and pricing pressure within the telecommunications sector. Data-center expansion is reshaping regional economies and supporting growing demand for cloud computing and AI workloads, while telecom pricing may limit adoption for cost-sensitive organizations.
Software and Cybersecurity Lead Segment Growth
IT software accounted for 32.80% of Canada ICT market revenue in 2025, making it the largest technology segment. Platform-as-a-service offerings, low-code development tools and industry-specific SaaS applications are helping organizations digitize workflows without substantial infrastructure investment.
IT security and cybersecurity are forecast to record the fastest growth, with a CAGR of 10.85%. The Canadian cybersecurity market reached USD 14.12 billion in 2025 and is expected to expand as privacy requirements, ransomware threats and cyber-insurance conditions drive investment in zero-trust security, identity management and extended detection technologies.
Demand for networking equipment remains strong due to 5G deployment and data-center expansion, while managed service providers continue to benefit from skills shortages and increasingly complex multicloud environments. AI capabilities are also being integrated into information management, analytics, observability and security platforms, encouraging enterprises to consolidate technology suppliers and adopt recurring subscription models.
SMEs Expected to Outpace Large-Enterprise Growth
Large enterprises represented 59.90% of ICT spending in 2025, supported by multiyear modernization programs, complex technology requirements and established internal IT teams. Small and medium-sized enterprises, however, are projected to grow at a faster CAGR of 10.14% as affordable SaaS subscriptions, business-process automation and provincial incentives lower adoption barriers.
ICT spending by Canadian SMEs is forecast to exceed USD 73.6 billion by 2031. Growing cloud adoption will support demand for API-first accounting, point-of-sale, marketing, fintech and e-commerce applications. At the same time, large enterprises are increasing their use of generative AI copilots for software development, finance and customer service, creating additional requirements for governance, integration and cybersecurity services across the Canada ICT market.
Key Topics Covered:
1 INTRODUCTION
1.1 Market Definition and Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Generative-AI-focused federal investment boom
4.2.2 Universal Broadband Fund accelerating rural connectivity
4.2.3 Rapid cloud-first migration among SMEs
4.2.4 Data-center expansions by hyperscalers in Ontario and Quebec
4.2.5 Electrification and carbon-pricing pushing smart-grid IT spend
4.2.6 Province-level digital-ID programs triggering cybersecurity upgrades
4.3 Market Restraints
4.3.1 Acute tech-talent shortage and wage inflation
4.3.2 Slow capital-equipment refresh outside Tier-1 metros
4.3.3 Legacy telecom duopoly limiting price competition
4.3.4 Data-sovereignty concerns delaying cross-border cloud workloads
4.4 Value / Supply-Chain Analysis
4.5 Evaluation of Critical Regulatory Framework
4.6 Impact Assessment of Key Stakeholders
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry
4.9 Impact of Macro-economic Factors
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Type
5.1.1 IT Hardware
5.1.1.1 Computer Hardware
5.1.1.2 Networking Equipment
5.1.1.3 Peripherals
5.1.2 IT Software
5.1.3 IT Services
5.1.3.1 Managed Services
5.1.3.2 Business Process Services
5.1.3.3 Business Consulting Services
5.1.3.4 Cloud Services
5.1.4 IT Infrastructure / Data Centers
5.1.5 IT Security / Cybersecurity
5.1.5.1 Solutions
5.1.5.1.1 Application Security
5.1.5.1.2 Cloud Security
5.1.5.1.3 Data Security
5.1.5.1.4 Identity and Access Management
5.1.5.1.5 Infrastructure Protection
5.1.5.1.6 Integrated Risk Management
5.1.5.1.7 Network Security Equipment
5.1.5.1.8 Other Solutions
5.1.5.2 Services
5.1.5.2.1 Professional Services
5.1.5.2.2 Managed Services
5.1.6 Communication Services
5.2 By End-user Enterprise Size
5.2.1 Small and Medium Enterprises
5.2.2 Large Enterprises
5.3 By End-user Industry
5.3.1 BFSI
5.3.2 IT and Telecom
5.3.3 Government
5.3.4 Retail and E-commerce
5.3.5 Manufacturing
5.3.6 Healthcare
5.3.7 Energy and Utilities
5.3.8 Others
5.4 By Deployment Mode
5.4.1 On-premise
5.4.2 Cloud
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
6.4.1 Amazon Web Services, Inc
6.4.2 Cognizant Technology Solutions Canada, Inc.
6.4.3 Salesforce Canada Corporation
6.4.4 Cisco Systems Canada Co.
6.4.5 CGI Inc.
6.4.6 Constellation Software Inc.
6.4.7 OpenText Corporation
6.4.8 The Descartes Systems Group Inc.
6.4.9 Rogers Communications Inc.
6.4.10 Bell Canada
6.4.11 Telus Communications Inc.
6.4.12 Shaw Communications Inc.
6.4.13 Quebecor Inc. (Videotron)
6.4.14 Saskatchewan Telecommunications Holding Corp.
6.4.15 MeloTel Inc.
6.4.16 Shopify Inc.
6.4.17 Lightspeed Commerce Inc.
6.4.18 Microsoft Canada Inc.
6.4.19 IBM Canada Ltd.
6.4.20 ATOS IT Solutions and Services Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 White-space and Unmet-need Assessment
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