BMI View: We downgrade d the IT market forecast for Canada in the Q415 update to account for the economic slowdown envisaged by our in - house Country Risk team and now expect growth of 2.5% in 2015 and a CAGR of 3.4% to total sales of CAD64.4bn in 2019. Even before the downgrade the growth outlook was subdued owing to the maturity of the Canadian IT market , which prohibits the high growth rates observed in emerging markets during the period of rapid 'catch-up' growth, with IT hardware sales expected to underperform due to a slower rate of product innovation as compared to software and services. In the latter two segments we envisage enterprise spending outperformance , includ ing adoption of cloud computi ng, Internet of Things, real-time software and services and big data analytics. Although the hardware segment has limited growth prospects it should be noted that Canada is a highly lucrative market due to high per capita incomes and a consumer preference for premium devices. Therefore, it will not offer unit and top line financial growth prospects - but will continue to offer vendors an attractive market with wider margins than those available in Latin American markets.
Headline Expenditure Projections
Computer hardware sales: CAD19.1bn in 2014 to CAD19.0bn in 2015, a decrease of 0.2%. Market maturity in all device categories, and specifically contraction in tablet market after initial phase of diffusion of ownership, will result in declining sales in 2015.
Software sales : CAD12.1bn in 2014 to CAD12.5bn in 2015, an increase of 3.4%. There is enterprise software growth potential among small- and medium-sized enterprises through the provision of lower cost SaaS solutions, as well as for advanced and more complex deployments in the large enterprise market.
IT Services sales: CAD23.3bn in 2014 to CAD24.3bn in 2015, an increase of 4.1%. Cloud computing adoption in the enterprise market a key driver of demand, while big data...
The Canada Information Technology Report features BMI Research's market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Canada Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Canada.
- Benchmark BMI's independent IT Industry forecasts for Canada to test other views - a key input for successful budgetary and strategic business planning in the Canadian IT market.
- Target business opportunities and risks in Canada's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Canada.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.
BMI Industry Forecast
Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
- Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
Information Technology Risk Reward Index
BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2019 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Cross-border analysis of country markets in the region, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.