We’ve got some statistics that’ll show you below that prove Canada’s tech scene is still thriving. But what exactly is making Canada tick when it comes to its thriving tech scene? Read on to find out.
A Flourishing Talent Pool
The talent pool is the driving force.
In 2024, internet users in the nation will have reached 36.74 million, boasting an impressive penetration rate of 94.3%. Over the decades, penetration rates have been prompted by the increasing digitisation of services and real-life ‘stuff’. One notable example of the success of digitisation has been the iGaming industry.
Back in the day – as with a lot of websites – things were simple in the iGaming industry. There was a very limited offering of games, deposit methods, and scope for what a player could expect from an online gaming platform. Nowadays, due to better security measures, improved programming languages and gaming innovations – in addition to developments of adjacent but applicable sectors like fintech – have led to a sizable growth for the industry, which is now worth billions of dollars across the globe. Today, gamers can expect the same games that were available a couple of decades ago, like video slots and blackjack, but also expect to see new variations that embrace newer standards of tech, namely games like live roulette, where live dealers sit at tables under the spotlight and gaze of camera that’s live-streaming the spinning of the wheel and the landing of the ball for the player at home. These new high-tech games are the latest innovations that embrace new developments. High-level connectivity is critical to ensuring these services remain at the top of their game.
Still, attracting the global best minds remains a priority for Canadian employers, where over 32 thousand tech experts immigrate annually, enticed by favourable immigration policies and lively local communities focused on technology advancement. Canada can also thank its introduction of the Tech Talent Strategy back in 2023, being the first ever seen in Canada. This move played an essential role in addressing the shortage of workers, AI, etc, by simplifying the immigration process and bringing in a highly qualified labour force.
Canada also has a US H-1B visa – holders can now migrate northwards thanks to a policy change, resulting in ten thousand fresh applications.
Economic and Market Trends
The economic landscape of 2024 has challenges and opportunities for Canada’s tech sector.
The global economy remains uncertain with fluctuating interest rates and inflation pressures, but Canada’s tech industry has shown resilience. Forecasts indicate an 8% increase in tech investment budgets this year compared to only 5% last year, which means that people are becoming more confident about what this sector can offer.
The key verticals of concern? When it comes to consumer-facing niches, gaming remains one of the most lucrative and yet still budding areas for creatives and eggheads alike. Mobile gaming represents a major driving force as the hardware continues to support greater demands, but so too does live gaming and streaming as servers scale to meet the demand. For instance, in the iGaming world live, multiplayer events have come to define the landscape in 2023 and 2024, with features representing major areas for R&D for these brands.
This positive outlook is backed up by a strong M&A performance record, particularly with fast-growing areas like artificial intelligence (AI), clean technology (clean-tech), or critical minerals. Although transaction volume was lower than expected overall during 2023 due to higher-than-anticipated rates, we expect recovery starting next year after dropping our forecast again when rates stabilize.
Canada is not even close to its technology boom. In 2024, Canada’s tech industry will leverage its key strengths to drive innovation across various sectors, including artificial intelligence (AI), clean energy, and beyond.
Investment Strategies and Creative Spaces
Strategic investments and the creation of innovation centers over the country are also a driving force.
Cities like Vancouver, Toronto, and Waterloo transformed into hotbeds where private capital intermingled government backing while institutions recruited bright students.
Toronto currently ranks as the fourth largest North American tech talent market, having witnessed over a 15.7% growth rate between 2022 and 2023. This phenomenal rise largely fueled massive investments by major tech players, including Google, Meta, and Amazon, which all have significant presence within Toronto.
Vancouver continues to benefit hugely from the Digital Technology SuperCluster, which spearheads research fields like AI and clean energy while boasting the second-highest VR/AR ecosystem globally.
Waterloo region’s proximity to Toronto – with its internationally acclaimed colleges and universities – keeps cementing its place as one of the top destinations for highly skilled workers looking to join the Canadian labor market within this sphere.
Canada also houses the biggest Google R&D office.
Forward-Thinking Government Policies
Canada’s technological boom owes much to its forward-thinking governmental interventions. 2023 saw the introduction of cleaner investment tax credits among a wider sustainable development drive by federal authorities who want to position themselves as leaders in green living spaces globally. These measures will bring substantial capital to the wind, solar, and power generation sectors, and more.
And, as the legislative context changes, Canadian organizations are more and more concerned with adherence and risk management, especially about digital privacy and cybersecurity. Laws such as Quebec’s Law 25 and the expected federal Artificial Intelligence and Data Act (AIDA) represent a shift towards greater technology regulation.
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