The Information Technology Landscape in Canada

 

About Canada

Telecommunication
Infrastructure

Privatization and Deregulation

Internet Activity

e-Commerce

Hardware Manufacturing
Software Development

IT Usage

IT Labor Market
IT Geographics
IT Financing
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
Sources and Links
About the authors

IT Usage by Households, Business, Government, and Military in Canada

Integration of Information Technology in Canada

Information Technology has become an integral part of all sectors of Canadian life - professionally, academically, and socially - including complete integration of information technology in the home, business, government, and the military. Similar to the United States, daily activity in all of these markets revolves around the functionality of computers and systems for travel, retail, education, health, manufacturing, servicing, and communication. Canada has become heavily dependent upon the proper functioning of technology in order to provide and secure the lives of its inhabitants. Information Technology took off in Canada as a reaction for information to be processed more quickly in order to be competitive on a global playing field. Both within the private and public sectors, all industries stimulate IT growth and prosperity. In the urban areas of Canada, IT has become a way of life just as it has in the United States. In the rural parts of Canada, IT has not diffused every household quite yet; however, as with the telephone, it is only a matter of time before everyone will not feel connected without the use of information technology. A recent study was conducted by the Nielson Research Group and found that:

  • 55% (13.5 million) of adult (18+) Canadians have internet access
  • 41% (11.3 million) have connected in the past three months
  • 26% (7.6 million) use the web each week

Weekly usage is up 160% from a 1996 survey and an expected one third (33%) of Canadians will use the web on a weekly basis in 1999. The percentage of Canadians with access to the Internet is up from 37% in the fall of 1996, but has remained practically the same for three of the last four quarters. Short-term Internet growth in Canada depends on existing users increasing their time online.

IT Usage in Canadian Homes

The amount of Canadians over the age of 12 that made an online purchase doubled to 12% over this past year. A survey of 12,000 households, by the marketing firm Nielsen, also revealed that 63% of the same group of Canadians now has access to the web. Canadians also see the web as a good medium for research:

Home use of the internet in Canada is growing at a faster pace than at-work access because of lower access fees. Home access was reported by 10% of the population in 1996, and 22% in the Fall of 1998. Canadian men are more likely to access from home than women, and more than 60% of Canadian home users spend more than three hours online each week.

IT Usage in Canadian Businesses

E-commerce would seem to have a future in Canada.

  • 61% of Canadian small businesses are currently using the internet
  • With respect to their business plans, 78% thought the internet's impact will be positive
  • 72% believed the internet would open new business opportunities

E-commerce is already off to a solid start among the respondents:

  • 27% had engaged in e-commerce during the past year: 11.4% used it for business; 5.9% for personal; and 10.1% had used it for both
  • 17% planned to engage in B2B e-commerce in the coming year, while 6.6% intended to on a personal basis

At work, 56% of Canadian users spend less than three hours on the web each week.

Moreover, there is relatively little negative attitude toward e-commerce. Almost half, 47% saw no barriers to e-commerce. Of those that saw barriers, lack of security (11%) and a lot of training required (10%) were the top reasons cited.

Source: e-Marketer

Influential Statistics for IT Usage in Canada

Worldwide ICT per GDP for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

Canada (#5)

6.9%

7.3%

7.4%

7.6%

7.8%

US (#3)

7.7%

7.7%

7.9%

8.2%

8.3%

Worldwide ICT Spending for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Canada (#7)

37,908

2.9%

39,536

2.8%

41,166

2.6%

44,060

2.6%

47,459

2.6%

US (#1)

484,993

36.5%

518,492

36.6%

557,252

35.1%

599,572

35.1%

642,798

35.8%

Worldwide IT Services Spending for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Canada (#6)

6,821

3.5%

7,267

3.5%

7,411

3.1%

7,743

3.1%

8,637

3.3%

US (#1)

82,417

42%

88,818

42.4%

98,091

41.6%

107,260

43.3%

124,013

46.7%

Internal IT Spending for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Canada (#6)

10,383

3.4%

10,195

3.3%

9,989

3.3%

9,871

3.2%

9,792

3.2%

US (#1)

102,599

33.8%

101,767

33.4%

100,787

33%

99,410

32.6%

98,515

32.3%

Office Equipment Spending for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Spending (US$M)

% of World

Canada (#8)

553

2.4%

620

2.4%

603

2.1%

680

2.4%

742

2.6%

US (#1)

4,661

20.5%

5,169

19.8%

6,458

22.4%

7,639

26.8%

7,582

26.2%

Installed Base of PCs in the Home and Education for Canada and the United States

(# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Units

% of World

Units

% of World

Units

% of World

Units

% of World

Units

% of World

Canada (#6)

975,077

2.1%

1,221,649

2%

1,812,218

2.2%

2,400,650

2.4%

2,932,075

2.5%

US (#1)

25,954,961

55.2%

32,563,000

53.4%

42,435,879

52.5%

51,514,194

50.7%

58,567,123

49.6%

Percentage of Personal Computers Networked (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

Canada (#2)

53.9%

59.3%

66%

68.5%

74.7%

US (#1)

43.9%

51.7%

58.2%

61.9%

63.1%

Worldwide Internet Hosts for Canada and the United States (# Ranking Worldwide)

 

1993

1994

1995

1996

1997

 

Units

% of World

Units

% of World

Units

% of World

Units

% of World

Units

% of World

Canada (#5)

86,312

3.8%

186,722

3.9%

372,891

3.9%

603,325

3.7%

839,141

3.4%

US (#1)

1,475,657

64.3%

3,179,170

66.5%

6,054,959

63.9%

10,112,888

62.3%

15,340,427

61.9%

Source: Digital Planet – The Global Information Economy

 

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Sarah Alijani sa0565a@american.edu  &  Richard Wright rightrf@aol.com ________________________________________________________________________________________
Last update: December 17, 1999