Canada is one of the most "wired" nations in the world. All major cities are
well-connected to a high-speed Internet backbone and, according to OECD figures,
Canada has the lowest Internet access costs among G-8 countries. The Government
of Canada has made a priority of supporting high-speed research networks and
Internet access for institutions and communities.
Software and services represent a significant portion, about 1.6 percent,
of total Canadian GDP. US companies are the dominant suppliers of computer
software to Canada. However, Canada's indigenous computer software industry,
benefiting from the lowest manufacturing costs in the G-7, has developed strong
companies that have achieved international recognition as market leaders in
their respective product niches, including: data and document management;
network management; customer relationship management (CRM); digital media; and
middleware.
While demand for ICT products and services has dropped over the last couple of
years, Canadian organizations are still spending on software applications that
show a tangible ROI and that are essential to the core operational competencies.
Software applications that integrate front and back office functions to merge
the value-creation side of the business with the value-counting side of the
business are in demand, as are programs that align operations with customers'
buying habits. Specifically, applications such as CRM, enterprise resource
planning, content management, website development, and maintenance applications
that help reduce costs have good sales prospects. Also, applications that
enable customers to manage their corporate IT infrastructure more easily on
their own and reduce the need for third party services should sell well.
Spending on mobile wireless applications also continues to increase.
PART III. DATA TABLE (in millions of US dollars)
2001
2002
2003
A.
TOTAL MARKET SIZE
5,192
3,998
4,954
B.
TOTAL LOCAL PRODUCTION
2,714
2,087
2,586
C.
TOTAL EXPORTS
1,879
1,418
1,768
D.
TOTAL IMPORTS
4,357
3,330
4,134
E.
IMPORTS FROM THE U.S.
3,336
2,544
3,177
(The above statistics are unofficial estimates.)
Canada's technological infrastructure is second only to that of the United
States and ranks above or very close to the US in terms of number of internet
users and computers per capita, as well as number of computer instructions sent
per second. Building a universal, leading-edge "Information Highway" remains a
Canadian government priority.
In the hardware arena, major trends in the Canadian CPT market include the
migration to Intel-based servers, away from UNIX servers, and the move by
Canadian enterprises toward the use of wireless networking products and Wireless
Area Networks (WANs). On the horizon is the development and adoption of
products that enable seamless transition between WANs and Local Area Networks
(LANs). American manufacturers of such technologies are well positioned to
take advantage of trends in areas of the market where Canadian corporations are
devoting investment dollars.
In the mature Canadian computer hardware sector, growth will come in the form of
anticipated infrastructure replacement, which will provide a boost to the
software, services and hardware markets.
American companies are expected to remain the primary suppliers of computer
hardware and peripherals to Canada. In fact, in this sector, Canada runs a
trade deficit with the United States. US companies with competitively priced
products, effective distribution channels, and strong customer service programs
can expect to profit from continued growth in the computer hardware and
peripheral market in Canada.