Canada Public Cloud Market Size | 2019-2033

Canada Public Cloud Market Growth and Performance

Key Takeaways:

• With a XX.8% year-over-year increase, the public cloud market size in Canada reached US$ XX.67 Billion in 2024.
• This projection indicates a compound annual growth rate of XX.5% during 2025 to 2033, the Canada public cloud market size reaching US$ XX.02 Brillion by 2033.

Canada Cloud Computing Market Outlook

This expansion of public cloud market in Canada is largely driven by the widespread adoption of Software as a Service (SaaS) solutions, which have become integral to Canadian businesses. Notably, SaaS was the largest revenue-generating segment in 2023, and Infrastructure as a Service (IaaS) is anticipated to be the fastest-growing segment during the forecast period. Also, the regulatory landscape in Canada has been supportive of cloud computing growth. The federal Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection, use, and disclosure of personal information in commercial activities, aligning Canada with international data protection standards. Additionally, the Pan-Canadian Framework on Clean Growth and Climate Change underscores the government's commitment to sustainable technological advancement, further encouraging cloud adoption.

In terms of SaaS companies, Canada is home to approximately 1,100 such firms, positioning it among the top countries globally in this sector. This number has been steadily increasing, reflecting the country's vibrant tech ecosystem and the growing demand for cloud-based solutions. The proliferation of SaaS companies is expected to continue, driven by factors such as digital transformation initiatives and the scalability advantages offered by cloud computing.

Canada Fintech Market Drivers and Trends

Canada’s public cloud services market is witnessing steady expansion as businesses prioritize digital transformation. The demand for operational efficiency and resilience is a major catalyst for cloud adoption, alongside efforts to modernize outdated IT infrastructure and applications. Over the past five years, cloud adoption in Canada has matured significantly, with enterprises recognizing the strategic benefits of a well-defined cloud approach. However, talent shortages continue to slow migration efforts, while increasing regulatory requirements around data privacy and governance are pushing organizations toward hybrid cloud solutions.

Although many enterprises have realized substantial gains from cloud investments, a significant number have yet to maximize its full potential. Industry experts emphasize that the primary challenge lies not in the cloud technology itself but in an organization's broader digital transformation roadmap. Additionally, managing cloud environments has become more complex, especially for enterprises leveraging multiple cloud providers and integrating sophisticated software solutions such as enterprise resource planning (ERP) systems. Many businesses also continue to maintain legacy on-premise infrastructure, adding further complexity to their cloud strategies.