The Canada data monetization is projected to grow at a CAGR of 6.06% to attain a market size of US$19.518 billion by 2027, from US$12.927 billion in 2020.
The major factors driving the market growth are rapid digitalization, an increase in the volume of data generated by the banking sector, massive investments by key players operating in the region, and increasing adoption of advanced data processing technologies such as AI and IoT. Additionally, growing awareness about the potential benefits of data monetization is also driving market growth. The market is segmented into four categories: offering, deployment model, enterprise size, and by end-user industry.
Canada Data Monetization Market Drivers:
The growing use of advanced technologies such as edge computing, AI, and the Internet of Things, is expected to drive the market growth in the country during the forecast period. Canada is making a significant investment in artificial intelligence in its federal budget for 2021. The country has announced that it will invest $185 million to support the commercialization of AI research. The investments are made to support the Pan-Canadian Artificial Intelligence Strategy of $443.8 million over 10 years, which is anticipated to have a positive impact on the overall market growth (Source: ITA). FedDev Ontario, for example, has announced a $50 million investment in digital main street and recovery activation programmes through the Regional Relief and Recovery (RRRF) programme to assist nearly 23k main street businesses and to support SMEs by enhancing their digital business models across Ontario (Source: Govt of Ontario).
The growing demand for data monetization from the BFSI sector of the region is one of the prime factors supporting the market’s growth. BFSI companies are major adopters and investors of data monetization techniques across the region. Canada’s banking system consists of the two largest banks in the world (in terms of market capitalization) i.e., Toronto-Dominion Bank and Royal Bank of Canada. The country’s banking industry is the major contributor to the growth of the country’s economy. Domestic banks in Canada provide approx. 57% of SME's business financing with other sources including credit unions and finance companies, portfolio managers, financial funds, etc., which generates a huge amount of data and is anticipated to drive the overall market growth during the forecast period.
Furthermore, factors such as increasing diversity in financial products and services,a better educated and demanding population, growing regulatory requirements for better monitoring of processes and the development of secure financial systems, and increasing investments by banks and financial institutions across the region are projected to have a positive impact on the overall market growth.
The data monetization market in the country was witnessing a healthy growth rate before the outbreak of the COVID-19 pandemic. The growing digitalization and the huge amount of data generated by the banking industry of the country are some of the major contributing factors that are driving the market’s growth. During the pandemic, the market’s growth was slowed down due to the lack of investments in the ICT sector. However, the market grew at an impressive pace in 2021 and is projected to continue to grow at a high pace.
The market has been analysed through the following segments:
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