Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $17.1bn in 2025.
Trends and Insights
Cloud adoption has been a catalyst for industry revenue grwoth
- Over the past five years, Canada's data processing and hosting services industry has experienced significant growth, primarily driven by the widespread adoption of cloud computing. According to IDC Canada, businesses now host an estimated 45% of their workloads on public clouds, a substantial increase from approximately 18% in 2019. This shift reflects a broader trend where Canadian companies are increasingly leveraging cloud services to enhance operational efficiency and scalability.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Data centers will continue to receive significant investment throughout Canada
- Data processing and hosting service companies within Canada are poised for significant growth, driven by a continued surge in cloud computing and AI investments. In 2025, the Canadian federal government announced a $2 billion investment over five years to establish new AI data centers nationwide, aiming to enhance the nation's AI capabilities and support research and innovation. Government support has also extended to the provincial level, with Alberta's government introducing an Artificial Intelligence Data Centres Strategy. This strategy prioritizes power capacity, sustainable cooling and economic growth to attract investment in massive data centers.
Biggest companies in the Data Processing & Hosting Services in Canada
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Amazon | 4,334.1 | 502.1 | 11.6 | |
IBM Canada Limited | 1,952.9 | 368.9 | 18.9 | |
IBM | 1,226.0 | 175.0 | 14.3 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Business process management and website hosting services, Application service provisioning and Data storage and management services. Business process management and website hosting services is the largest segment of the Data Processing & Hosting Services in Canada.
Trends and Insights
Business process management and website hosting services lead all product segments
- Services include network management, computer systems management, document transportation and computer systems design. Operators offer value-added services, including data warehousing and mining to help clients better analyze data.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Operators in the Data Processing and Hosting Services industry in Canada provide specialized data processing or hosting activities. Data processing services provide specialized reports from information supplied by clients. Hosting services can include website and application hosting and range from automated data entry to processing such data. This industry does not include the websites themselves or the revenue earned by their owners.
What's included in this industry?
Products and services covered in the Data Processing & Hosting Services industry in Canada include Application hosting, Application service provider services, Data entry services, Data processing computer services, Data processing, Database management and Website hosting.Companies
Companies covered in the Data Processing & Hosting Services industry in Canada include Amazon, IBM Canada Limited and IBM.Purchase this report to view all 6 major companies in this industry.
Related Terms
Related terms covered in the Data Processing & Hosting Services industry in Canada include data warehousing, information technology (it), software as a service (saas), application service provider (asp), cloud computing, outsourcing, machine learning and artificial intelligence (ai).Industry Code
NAICS 518210 - Data Processing & Hosting Services in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Data processing services are embracing the cloud revolution, propelling industry giants like IBM and AWS to significant revenue growth. Smaller companies lean on popular plat...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The surge in collective data volume has thrust data storage and management services to the forefront, with businesses inclining towards outsourcing or adopting Software as a S...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario has the most locations due to its large cities and business environment. It has one of the nation’s most attractive areas for businesses and consumers.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each province in 2025
- Number and share of revenue each province accounts for in 2025
- Number and share of wages each province accounts for in 2025
- Number and share of employees in each province in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Canadian data processing and hosting providers are under mounting pressure from US companies like AWS and IBM. These multinational leaders leverage economies of scale to unde...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
AWS and IBM maintain the largest market shares in the industry. Both companies have an expansive global footprint and continuously introduce AI and cyber solutions.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Amazon's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of IBM Canada Limited's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of IBM's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Amazon, and factors influencing its performance in the industry
- Description and key data for IBM Canada Limited, and factors influencing its performance in the industry
- Description and key data for IBM, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Most regulations center on safeguarding consumer data. Many bills empower individuals with greater control over how their personal information is collected, used and shared.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Intense competition has compressed profit. Providers cut prices to win clients, driving up marketing and infrastructure costs, which in turn has curtailed profit growth acros...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Assets (2018-2023)
- Liabilities (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Data Processing & Hosting Services industry in Canada in 2025?
The market size of the Data Processing & Hosting Services industry in Canada is $17.1bn in 2025.
How many businesses are there in the Data Processing & Hosting Services industry in Canada in 2025?
There are 3,436 businesses in the Data Processing & Hosting Services industry in Canada, which has grown at a CAGR of 3.9 % between 2020 and 2025.
How may import tariffs affect the Data Processing & Hosting Services industry in Canada?
The Data Processing & Hosting Services industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Data Processing & Hosting Services industry in Canada?
The Data Processing & Hosting Services industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Data Processing & Hosting Services industry in Canada grown or declined over the past 5 years?
The market size of the Data Processing & Hosting Services industry in Canada has been growing at a CAGR of 5.6 % between 2020 and 2025.
What is the forecast growth of the Data Processing & Hosting Services industry in Canada over the next 5 years?
Over the next five years, the Data Processing & Hosting Services industry in Canada is expected to grow.
What are the biggest companies in the Data Processing & Hosting Services industry in Canada?
The biggest companies operating in the Data Processing & Hosting Services industry in Canada are Amazon, IBM Canada Limited and IBM
What does the Data Processing & Hosting Services industry in Canada include?
Application hosting and Application service provider services are part of the Data Processing & Hosting Services industry in Canada.
Which companies have the highest market share in the Data Processing & Hosting Services industry in Canada?
The company holding the most market share in the Data Processing & Hosting Services industry in Canada is Amazon.
How competitive is the Data Processing & Hosting Services industry in Canada?
The level of competition is high and increasing in the Data Processing & Hosting Services industry in Canada.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
