IDC Canada Releases 8 New Forecasts for Canadian ICT Market: Traditional IT Market Growth Slows as Spending Shifts to Digital
- May 25, 2017 -
- International Data Corporation (IDC) announced today the release of 8 new forecast reports for the Canadian information
and communications technology (ICT) market from multiple research subscription services. Key findings from the forecast reports
Canadian IT Professional Services Forecast, 2017-2021:
The IT professional services market in Canada is in the midst of a transition, one that coincides with challenges in the
macroeconomic environment in Canada, however, there are pockets of growth that will provide vendors with long-term opportunities.
Current and projected spending estimates put the five-year CAGR for IT professional services at 1.9%.
Canadian Infrastructure Outsourcing Forecast, 2017-2021:
IDC anticipates that the Canadian infrastructure outsourcing market will grow by 2.3%, or C$223 million, and will surpass
C$9.7 billion in revenue by the end of 2017. We anticipate that the IT outsourcing segment will decline by 1.4% and slip
under the C$5.4 billion mark by the end of 2017. IDC further expects that the network and endpoint outsourcing services segment
will grow 2.2% and exceed C$2.5 billion in 2017. Hosting infrastructure services is anticipated to grow by more than 15.3%
in 2017, reaching C$1.8 billion in market value.
Canadian Server Forecast, 2017-2021:
The server revenue in Canada has been declining for the past few years, and we don't expect this trend to change for 2017.
Vendors need to work closely with the IT departments and deliver the right solution for the right customer while creating
sufficient ROI, if they want to succeed in this challenging environment." IDC forecasts this market to stay flat with a CAGR
of 0.2% over the forecast period.
Canadian Enterprise Storage Systems Forecast, 2017-2021:
IDC expects there will continue to be single-digit growth going forward to 2021; however, the chief market pressures of
lower per-terabyte storage costs and the expansion of cloud offerings and uptake remain threats to storage original equipment
manufacturers' (OEMs') revenue and profitability. Total disk storage systems revenue is expected to grow at a CAGR of 1.6%
Canadian Networking Equipment Forecast, 2017-2021:
IDC predicts that the networking equipment market in Canada is forecast to reach $3.06 billion in revenue in 2021, resulting
in a five-year CAGR of 2.8%. Consolidation is driving product refresh cycles in core networks, while higher bandwidth requirements
and cloud management capabilities increase investments in campus and edge networks.
Canadian Telecom Services Forecast, 2017-2021: Telecom Inside Out:
IDC projects that the Canadian telecommunications market will grow at a five-year CAGR of 2.1%, yielding revenue of almost
C$51.1 billion in 2020. Communication Service Providers (CSPs) can seize new opportunities in the IT services and video markets,
but disruptive technologies such as SIP trunks and global transformation of ICT platforms are spawning new competitors while
changing the economics of service delivery.
Canadian Consumer Wireless, Internet, and Phone Services Forecast, 2017-2021:
IDC Canada expects the collective consumer service communications market to increase at a five-year CAGR of 3.2%, increasing
to C$27.2 billion in 2020. Overall, revenue from wireless services will make up the majority of the revenue share throughout
the forecast period, followed by Internet service and then wireline voice service.
Canadian IT Forecast, 2017-2021: By Vertical Market:
This IDC study outlines IDC Canada's market size and forecast for the Canadian information and technology (IT) market by
industry for the 2017-2021 forecast period. It updates our previous forecast published in Canadian IT Forecast, 2016-2020:
By Vertical Market (IDC#CA40626216, Oct 2016). IDC Canada projects that this market will expand by $1.7 billion in 2017 and
will grow by 3.3% through 2021.
"IDC Canada is excited to see Digital Transformation strategies at the centre of growth and change in the Canadian IT industry,"
Tony Olvet, Group Vice President, Research, at IDC Canada.
"IDC is forecasting a slowing of growth in the traditional IT and hardware markets including servers and enterprise storage, and pockets of growth and opportunities in infrastructure and networking equipment.
As organizations look to improve their products and streamline operations through outsourcing, connected devices (IoT) and the cloud, they're beginning to focus on building out the foundation for supporting these new technologies through investments in IaaS, PaaS, IoT-enabled network technology and agile communication frameworks," he says. "It will be interesting to see how vendors and service providers adjust to the demands of the market by leveraging these new technologies."
IDC develops detailed forecasting reports and analysis for major technology markets in Canada, which are published annually during the month of May. IDC's Forecast Scenario Assumptions for the Canadian ICT Market, 2017 and Beyond (IDC# CA42460917, April 2017) supports the underlying macroeconomic assumptions for each of the ICT market forecast reports.
For more information about the market forecast reports, the subscription services in which they are published, or to arrange
a one on one interview with any of the report authors, please contact Andrea Loziuk at
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