Canadian ICT Sector Profile – 2014


This publication is available online at https://www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it07229.html.

To obtain a copy of this publication, or to receive it in an alternate format (Braille, large print, etc.), please fill out the Publication Request Form at www.ic.gc.ca/Publication-Request or contact:

Web Services Centre
Innovation, Science and Economic Development Canada
C.D. Howe Building
235 Queen Street
Ottawa, ON  K1A 0H5
Canada

Telephone (toll-free in Canada): 1-800-328-6189
Telephone (international): 613-954-5031
TTY (for hearing impaired): 1-866-694-8389
Business hours: 8:30 a.m. to 5:00 p.m. (Eastern Time)
Email: ISED@Canada.ca

Permission to Reproduce

Except as otherwise specifically noted, the information in this publication may be reproduced, in part or in whole and by any means, without charge or further permission from the Department of Industry, provided that due diligence is exercised in ensuring the accuracy of the information reproduced; that the Department of Industry is identified as the source institution; and that the reproduction is not represented as an official version of the information reproduced, or as having been made in affiliation with, or with the endorsement of, the Department of Industry.

For permission to reproduce the information in this publication for commercial purposes, please fill out the Application for Crown Copyright Clearance at www.ic.gc.ca/copyright-request or contact the Web Services Centre mentioned above.

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Industry, 2016

Aussi offert en français sous le titre Profil du secteur canadien des TIC - 2014

Industry Structure

There are over 36,000 companies in the Canadian Information and Communications Technologies (ICT) sector. The large majority (over 32,000) fall within the software and computer services industries.

The ICT sector consists mainly of small companies, with over 31,000 of them employing fewer than 10 people. The number of large companies employing over 500 individuals is relatively small, accounting for approximately 120 firms, including subsidiaries of foreign multinational corporations.

Manufacturing stands out as the sub-sector with larger companies. In 2014, 14.5% of ICT manufacturing companies had more than 50 employees, while across the whole ICT sector this share was only 3.1%.

Figure 1: Companies by ICT Sub-sector, 2014

Pie chart of companies by ICT sub-sector for 2014 (the long description is located below the image)
Description of Figure 1
Companies by ICT Sub-sector, 2014
ICT Sub-sector Percentage
ICT Wholesaling 5.5%
ICT Manufacturing 2.8%
Communications Services 3.7%
Software & Computer Services 88.0%
Source: ISED, Canadian ICT Statistical Overview

Figure 2: Companies by Employee Size for Total ICT Sector, 2014

Pie chart of companies by employee size for total ICT Sector in the year 2014 (the long description is located below the image)
Description of Figure 2
Companies by Employee Size for Total ICT Sector, 2014
No. of Employees Percentage
1–9 Employees 85.6%
10–49 Employees 11.2%
50–100 Employees 1.7%
100+ Employees 1.5%
Source: ISED, Canadian ICT Statistical Overview

Revenues

Revenues in the ICT sector increased by 5.9% in 2014, led by the software and computer services sub-sector (+8.1%). The wholesaling and communications services sub-sectors posted growth rates of 5.7% and 5.0%, respectively, while the manufacturing industries declined by 0.8%.

From 2007 to 2014, ICT sector revenues grew from $133.4 billion to $169.8 billion, a 27.2% increase. During this period, the ICT manufacturing industries declined by 47.0%. On the other hand, all of the services sub-sectors posted gains: the software and computer services, wholesaling, and the communications services sub-sectors increased by 48.8%, 33.0%, and 31.2% respectively.

Over the same period, manufacturing industries' revenue dropped from 12.0% to 5.0% of total ICT sector revenue.

Figure 3: ICT Sub-sector Revenues, 2007–2014

Bar chart of ICT Sub-sector Revenues, 2007–2014 (the long description is located below the image)
Description of Figure 3
ICT Sub-sector Revenues, 2007–2014
($billions)
ICT Sub-sector 2007 2008 2009 2010 2011 2012 2013 2014
Manufacturing 16.06 13.47 11.63 11.96 11.54 9.89 8.59 8.51
Software and Computer Services  38.13 40.88 42.69 43.27 46.66 49.26 52.45 56.72
Communications Services 47.22 50.51 52.30 54.16 56.12 57.61 58.99 61.95
Wholesaling  32.02 33.41 32.25 34.42 35.96 39.16 38.76 41.84
Total ICT Sector 133.44 138.27 138.87 143.82 150.27 155.72 158.79 169.03
Source: ISED, Canadian ICT Statistical Overview

Figure 4: Revenues by ICT Sub-sector, 2014
(Total: $169.8 Billion)

Pie chart of Revenues by ICT Sub-sector, 2014 (the long description is located below the image)
Description of Figure 4
Revenues by ICT Sub-sector, 2014
ICT Sub-sector Percentage
ICT Wholesaling 25.1%
Communications Services 36.5%
Software & Computer Services 33.4%
ICT Manufacturing 5.0%
Source: ISED, Canadian ICT Statistical Overview

GDP Contribution

The ICT sector makes a substantial contribution to Canada's GDP. In 2014, the sector's GDP was $70.2 billionFootnote *, and accounted for 4.3% of national GDP.

ICT sector growth was slightly ahead of the overall economy in 2014. The sector increased by 2.7%, compared to 2.5% for the total Canadian economy. Since 2007, the ICT sector has posted stronger growth than the total economy. On average, annual growth in this sector has been 1.7%, compared to 1.5% for the overall economy. The ICT sector has accounted for 4.6% of Canadian GDP growth since 2007.

The software and computer services industries accounted for the highest growth in GDP in 2014, up 5.7%. The ICT wholesaling and communications services sub-sectors also increased, up 1.6% and 0.6%, respectively. Meanwhile, the manufacturing industries GDP decreased slightly, down 0.1%.

Figure 5: GDP by ICT Sub-sector, 2014
(Total: $70.2 Billion)

Pie chart of GDP by ICT Sub-sector, 2014 (the long description is located below the image)
Description of Figure 5
GDP by ICT Sub-sector, 2014
(Total: $70.2 Billion)
ICT Sub-sector Percentage
ICT Wholesaling 9.6%
ICT Manufacturing 5.0%
Telecom. Services 44.3%
Software & Computer Services 41.1%
Source: ISED, Canadian ICT Statistical Overview

Figure 6: ICT Sector GDP, 2007–2014
(2007 Constant Dollars)

Bar chart of ICT Sector GDP, 2007–2014 (the long description is located below the image)
Description of Figure 6
ICT Sector GDP, 2007–2014
(2007 Constant Dollars)
Year Information and communication technology sector
($billions)
2007 62.5
2008 63.5
2009 62.2
2010 64.5
2011 67.1
2012 67.3
2013 68.3
2014 70.2
Source: ISED, Canadian ICT Statistical Overview

Employment

The ICT sector accounts for 3.1% of national employment. Employment in the ICT sector increased 1.2% in 2014, amounting to 545,800 jobs. This growth was twice as fast as for the overall economy (0.6%).

Employment decreased in two ICT sub-sectors in 2014. Employment in the manufacturing and communication services sub-sectors declined by 9.6%, and 3.4%, respectively. Meanwhile, employment in the software and computer services, and ICT wholesaling industries increased by 4.2%, and 0.8%, respectively.

Reflecting a shift in the ICT sector from manufacturing to services, the share of manufacturing industries in total ICT sector employment declined by 4.3 percentage points from 2007 to 2014, while the share of software and computer services industries increased by 8.6 percentage points over the same period.

Figure 7: ICT Sector Employment, 2007–2014

Bar chart with line chart of ICT Sector Employment, 2007–2014 (the long description is located below the image)
Description of Figure 7
ICT Sector Employment, 2007–2014
Year ICT Employment level (L)
('000$)
ICT share of Canadian Employment (R)
(Percentage)
2007 517.5 3.1
2008 531.7 3.1
2009 521.6 3.1
2010 530.4 3.1
2011 523.1 3.0
2012 531.3 3.0
2013 539.5 3.1
2014 545.8 3.1
Source: ISED, Canadian ICT Statistical Overview

Figure 8: Employment by ICT Sub-sector, 2014
(Total: 545,800 Workers)

Pie chart of Employment by ICT Sub-sector, 2014 (the long description is located below the image)
Description of Figure 8
Employment by ICT Sub-sector, 2014
(Total: 545,800 Workers)
ICT Sub-sector Percentage
ICT Wholesaling 9.8%
ICT Manufacturing 7.0%
Communications Services 20.2%
Software & Computer Services 63.0%
Source: ISED, Canadian ICT Statistical Overview

Research & Development

ICT industries are the largest performers of private sector R&D in Canada. In 2014, the ICT sector held a 31.1% share of all private sector R&D expenditures in Canada.

In 2014, ICT sector R&D expenditures totaled $4.9 billion, falling 1.3% from the previous year, largely due to a drop in the wholesaling industry which has experienced strong growth in recent years.

From 2007 to 2014, R&D spending in the ICT sector fell by 9.0%. While spending increased in wholesaling (+160%), and software and computer services (+3.3%), it decreased in the communication services (−40.5%), and manufacturing (−24.8%) industries.

Figure 9: R&D Expenditures by ICT Industry, 2014
(Total: $4.9 Billion)

Pie chart of R&D Expenditures by ICT Industry, 2014 (the long description is located below the image)
Description of Figure 9
R&D Expenditures by ICT Industry, 2014
(Total: $4.9 Billion)
ICT Industry Percentage
Wholesaling 11.2%
Communications Equipment Mfg 26.8%
Electronic Components Mfg 9.0%
Other ICT Mfg 1.8%
Communications Services 8.5%
Software & Computer Services 42.7%
Source: ISED, Canadian ICT Statistical Overview

Education

The ICT sector is characterized by a knowledge-intensive workforce, with over half of its workers holding a university degree, compared to 27.6% within all Canadian industries.

The software and computer services sub-sector employs the largest proportion of university educated workers within the ICT sector.

Figure 10: Percentage of Workers with a University Degree by Major ICT Industry, 2014

Bar chart of Percentage of Workers with a University Degree by Major ICT Industry, 2014 (the long description is located below the image)
Description of Figure 10
Percentage of Workers with a University Degree by Major ICT Industry, 2014
ICT Industry Percentage
Software & Computer Services 58.0%
Total ICT Sector 50.9%
Electronic Component Mfg 43.7%
Computer Equipment Mfg 43.6%
Communications Equipment Mfg 42.2%
Communications Services 37.0%
All Canadian Industries 27.6%
Source: Statistics Canada, Labour Force Survey (LFS)

Earnings

Employees in the ICT sector earn on average over $71,000 a year. In 2014, these workers earned 47% more than the economy-wide average, with the highest earners coming from the software and computer services industries.

Despite being the lowest paid workers in the ICT sector, employees in the electronic component industry still earned 14.1% more than the national average in 2014.

However, from 2007 to 2014, the average salary in the ICT sector grew at a slower pace than in the overall economy, up 16.6% and 18.7% respectively.

Figure 11: Average Annual Earnings by Major ICT Industry, 2014

Bar chart of Average Annual Earnings by Major ICT Industry, 2014 (the long description is located below the image)
Description of Figure 11
Average Annual Earnings by Major ICT Industry, 2014
ICT Industry Annual Earning
Software & Computer Services $77,143
Communications Eqpt Mfg $74,378
Total ICT Sector $71,460
Communications Services $60,045
Electronic Component Mfg $55,463
All Canadian Industries $48,606
Source: Statistics Canada, Survey of Employment, Payrolls and Hours (SEPH)

Exports

The Canadian ICT manufacturing sub-sector relies heavily on the export market. About 86.0% of ICT products manufactured in Canada were exported in 2014.

Canadian exports of ICT goods increased by 3.6% in 2014 to $10.5 billion. Increases in exports of wireless communications equipment (+12.3%), as well as computer and peripheral equipment (+11.0%), contributed the most to this growth.

However, between 2007 and 2014, exports of ICT goods dropped by 37.2%. Since 2007, exports of wired communications equipment (−63.1%) fell the most while exports of audio and video equipment (+13.9%) were the only to increase. Over this period, the share of wired communications equipment in total ICT goods exports dropped by 12 percentage points to 17.1%.

Figure 12: Exports of ICT Goods by Product Group, 2014
(Total: $10.5 Billion)

Pie chart of Exports of ICT Goods by Product Group, 2014 (the long description is located below the image)
Description of Figure 12
Exports of ICT Goods by Product Group, 2014
(Total: $10.5 Billion)
Product Group Percentage
Other ICT Goods 14.0%
Electronic Components 22.2%
Wireless Communications Eqpt 19.7%
Wired Communications Eqpt 17.1%
Computer Eqpt 27.1%
Source: ISED, Canadian ICT Statistical Overview

Figure 13: Exports of ICT Goods by Region, 2014
Share of Total ICT Goods Exports

Pie chart of Exports of ICT Goods by Region, 2014 - Share of Total ICT Goods Exports (the long description is located below the image)
Description of Figure 13
Exports of ICT Goods by Region, 2014
Share of Total ICT Goods Exports
Region 2014
Asia-Pacific 11.4%
European Union 10.2%
Other 10.8%
United States 67.7%
Source: Statistics Canada, Trade Data Online

Exports of ICT goods to the United States increased by 4.2% in 2014, making up over two-thirds ($6.6 billion) of all ICT goods exported from Canada. However, exports to the US are still $4.6 billion lower than in 2007. Exports to the Asia-Pacific region increased by 13.0% in 2014, while exports to the European Union increased by 1.4%. Exports to all other countries accounted for $1.1 billion of Canadian ICT goods exports in 2014, down 7.2% from 2013.

The ICT services industries are more domestically oriented. In 2014, exports of communications services declined by 3.1%, totaling $2.1 billion, while software and computer services dropped 1.3% to $9.1 billion. Exports accounted for 16.0% of software and computer services revenues, and less than 3.5% of communications services revenues.

Although ICT services exports declined in 2014, the long-term trend shows that exports of ICT services are catching up with exports of ICT goods. From 2007 to 2014, exports of software and computer services grew by 26.7%, while exports of communications services increased (+21.0%). However, the increase in exports of ICT services was not large enough to offset the decline in exports of ICT goods. Total exports of ICT goods and services decreased (−15.3%) during the period, although ICT exports of goods and services remained flat in 2014.

Figure 14: Exports of ICT Goods and Services, 2007–2014

Line chart of Exports of ICT Goods and Services, 2007–2014 (the long description is located below the image)
Description of Figure 14
Exports of ICT Goods and Services, 2007–2014
($billions)
Type of ICT component 2007 2008 2009 2010 2011 2012 2013 2014
Goods 17 15 13 11 11 11 10 11
Software and Computer Services 7 8 8 8 9 9 9 9
Telecommunications Services 2 2 2 2 2 2 2 2
Total 26 25 23 21 22 22 22 22
Source: ISED, Canadian ICT Statistical Overview

ICT Sector Industries

ICT Manufacturing
  • Computer and Peripheral Equipment
  • Communications Equipment
  • Electronic Components
  • Audio and Video Equipment
  • Magnetic and Optical Media
ICT Wholesaling
Software and Computer Services
  • Software publishers
  • Computer systems design
  • Data processing
  • Electronic and precision equipment repair and maintenance
Communications Services
  • Wireless Telecommunications Carriers
  • Wired Telecommunications Carriers
  • Cable and Other Program Distribution
Help us improve
Back to "Help us improve" section.
  
Back to "What's the problem?" section.
Got it, thanks!
Um, you didn't enter anything.
Date modified: