Overview 

Table: ICT Sector Trade Data, US$, millions

Source: Trade Data Online
 

The Canadian ICT sector has grown substantially in recent years, accelerated by digital transformation spurred by the COVID-19 pandemic. The move to digital channels for business and customer interactions has continued to shape industries, pushing them toward adopting more advanced technologies. 
In 2024, the Canadian ICT sector remained highly trade-dependent, with imports totaling US $38.6 billion and exports of US$12 billion. The United States is Canada’s top partner in ICT trade, with US $7.9 billion in exports from Canada. Ontario (US$4.82 billion), Quebec (US$767.57 million), British Columbia (US$395.94 million), and Manitoba (US$251.88 million) were the largest regions for ICT imports.

As of 2025, Canada’s ICT sector continues to expand, bolstered by both government investments and the increasing adoption of emerging technologies. The Government of Canada remains the largest purchaser of ICT goods and services, with an annual spending commitment of approximately C$5 billion (US$3.61 billion). Federal initiatives aimed at advancing technology infrastructure will continue to drive innovation and growth within the sector.   

Leading Sub-sectors 

Notable trends in the ICT sector in Canada for 2025 include: 

• Cyber Security: Cybersecurity remains a critical focus in Canada, especially as the country faces increasing cyber threats. The Canadian government has committed substantial investments to enhance the nation’s cyber resilience. In 2025, the National Cyber Security Strategy, which began with US$382.6 million over five years, has been extended with additional funding to strengthen both public and private sector defenses against cyberattacks. Canada’s growing dependence on cloud services and digital infrastructure increases the demand for advanced cybersecurity solutions, particularly AI-powered threat detection and quantum-safe encryption. 
   
• Cloud Services: The adoption of cloud computing continues to be a major trend, with Canadian businesses and government agencies increasingly relying on hybrid cloud solutions. In 2025, Canada’s government has committed to an investment of C$1.8 billion (US$1.3 billion) to improve cloud infrastructure for public services, ensuring scalability, security, and cost-effectiveness.  Cloud adoption will remain strong, particularly as industries transition to AI-driven and serverless computing environments. 
   
• Artificial Intelligence: AI has become a central focus for both industry leaders and the Canadian government.  In 2025, the federal government has committed C$2.4 billion (US$1.75 billion) to advancing AI research, infrastructure, and talent development, making Canada a global leader in AI innovation. The Canadian government announced in its 2024 Fall Economic Statement up to C$15 billion (US$10.8 billion) in loan and equity incentives to support the development of AI data centers powered by green energy. Under this plan, participating pension funds must contribute two dollars of private capital for every dollar of federal funding and take on a significant ownership role in the projects. The initiative is designed to meet growing demand for AI infrastructure while advancing Canada’s climate goals and reinforcing its position as a global leader in sustainable technology. Canada’s largest pension funds—collectively known as the “Maple 8”—are seen as key participants in this effort. These include the Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ), Ontario Teachers’ Pension Plan (OTPP), and Alberta Investment Management Corporation (AIMCo), among others. While no specific fund has formally been committed, their involvement is essential to the initiative’s success.
   
• Robotics: In 2025, Canada has witnessed the continued growth of robotics manufacturing and logistics. The Canadian government allocated C$500 million (US$360 million) to support automation initiatives with critical industries, including Robotic Process Automation (RPA), Robotics-as-a-Service (RaaS), and autonomous mobile robots (AMRs). The investment also focuses on fostering partnerships between universities startups, and corporations to develop and scale advanced robotics technologies. 
   
• Augmented Reality (AR) and Virtual Reality (VR): AR/VR technology is transforming Canadian sectors such as education, training, and retail. With the Canadian government launching a C$300 million (US$215 million) initiative to expand AR/VR capabilities in education and remote learning, these technologies are becoming central to the development of immersive learning tools and virtual training environments. In the coming years, industries like real estate, healthcare, and entertainment will heavily rely on AR/VR for enhanced consumer experiences and operational efficiencies. 

Opportunities 

• Cybersecurity: Cyber threats in Canada are becoming more frequent, targeted, and sophisticated, with government agencies, critical infrastructure operators, and private firms facing a growing number of ransomware attacks, phishing campaigns, and state-sponsored intrusions. The National Cyber Security Strategy (2025) builds on the 2018 framework, with a total investment of US$482.6 million (including an additional US$100 million in renewed funding).  The updated strategy prioritizes AI-driven threat detection, quantum-safe encryption, and enhanced protection for critical infrastructure. These areas of focus are expected to drive substantial government procurement activity, opening new opportunities for U.S. companies offering advanced cybersecurity solutions, including cloud-based platforms, identity management, and incident response systems.
   
• Artificial Intelligence (AI): AI research, infrastructure, and talent development through 2025. As AI becomes more integrated with 5G technology, it enables real-time data analysis for industries like healthcare, automotive, and smart cities. For example, Ericsson received C$635 million (US$460 million) in federal support to expand 5G and AI R&D in Canada, including projects focused on smart networks and real-time applications. Pilot initiatives in cities like Montreal and Vancouver are also exploring AI-driven traffic control, public safety, and connected healthcare. Canada’s AI infrastructure investments and sustainable data centers powered by green energy further open avenues for business in the AI sector.

Commercial Service Contacts  

For additional information on this sector, please contact Commercial Specialist Tracey Ford at Tracey.Ford@trade.gov or by phone at (613) 688-5406.