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By the Numbers: Canada's Tech Sector Thumbnail

By the Numbers: Canada's Tech Sector

Canada's tech sector has grown significantly over recent years and has become a significant part of the country’s economy. From innovative startups to established giants, this sector has attracted global attention and investment. 

Here, we’ll showcase Canada's tech landscape by the numbers.

The Tech Sector’s Rapid Growth

As we consider Canada’s tech sector by the numbers, here are some highlights:

  • The top provinces when it comes to projected net tech employment are Ontario and Quebec.1 At about 8%, Ontario has the highest concentration of net tech employment as a percentage of its overall employment base.
  • Information and communication technology spending was projected to exceed $5.8 trillion in 2023.2
  • As a percentage of the overall Canadian economy, the tech industry accounts for approximately 5.5 percent of direct economic value, which translates to $113.41 billion CAD.1
  • The top four occupation categories for job postings are software engineers and designers, IT support and network technicians, database analysts and administrators, and computer and information system managers.1

A Tech Employment Boom

Tech jobs are in high demand across the country, with net tech employment in Canada reaching an estimated 1.3 million workers in 2022.1 This number is expected to continue rising as companies expand and new startups emerge. The sector offers diverse opportunities, from software development to artificial intelligence research, attracting top talent from around the globe.

Canada as a Startup Hub

Canada has become a hotbed for tech startups, particularly in cities like Toronto, Vancouver, and Montreal. For example, Toronto's MaRS Discovery District, a sprawling innovation hub, has nurtured countless startups, contributing to the city's reputation as a global tech powerhouse.3

Tech Investments

Investors are flocking to Canada's tech scene, recognizing the potential for high returns. That being said, Q3 2023 saw a decline in Canadian startup funding. Funding to Canadian startups declined by 57% to $808 million in Q3 2023 from the previous quarter.4

An AI Powerhouse

Canada has positioned itself as a leader in artificial intelligence. According to Crunchbase, over 1,600 AI organizations have a total funding amount of $7.5B.5

A few of the largest include:6

  • Open Text Corp
  • Lightspeed Commerce Inc
  • Kinaxis Inc
  • Telus Corp

Diversity and Inclusion

The tech sector in Canada is increasingly prioritizing diversity and inclusion. Companies are actively seeking to create more inclusive workplaces, recognizing the value of diverse perspectives. Initiatives promoting women in tech, Indigenous representation, and equitable hiring practices are gaining traction, making the industry more welcoming and innovative.

That being said, some groups are still significantly underrepresented in tech. Representation of women is 36.9%, and only 17.8% of software developers are women. Indigenous representation in the sector is 0.9%, and people with disabilities remain significantly underrepresented at 4.2%.7

The Green Tech Revolution

Canada's commitment to sustainability is reflected in its burgeoning green tech sector. Companies are developing innovative solutions to combat climate change, from renewable energy technologies to smart grid systems. With a focus on environmental responsibility, Canada's tech industry is driving the transition to a greener future.8

Canada's tech sector is a powerhouse of innovation, growth, and opportunity, and there is still room for growth. The country is well-positioned to lead in the digital economy, and as the sector continues to evolve, Canada will remain an exciting destination for tech enthusiasts, investors, and innovators.

  1. https://www.comptia.org/content/research/comptia-state-of-tech-workforce-canada
  2. https://www.statista.com/topics/4125/ict-industry-in-canada/#topicOverview
  3. https://www.marsdd.com/
  4. https://techcrunch.com/2023/10/09/canadian-startup-funding/
  5. https://www.crunchbase.com/hub/canada-artificial-intelligence-companies
  6. https://www.theglobeandmail.com/investing/investment-ideas/number-cruncher/article-seven-growing-canadian-artificial-intelligence-stocks/
  7. https://www.businesswire.com/news/home/20231128712493/en/TAP-Network-Releases-2023-Report-on-Diversity-within-Canada
  8. https://natural-resources.canada.ca/climate-change/canadas-green-future/20234

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.