Software development and computer services, 2024

Released: 2026-03-11

Growth continues in the computer services sector in 2024

Canada's software development and computer services industries recorded sustained growth in 2024, as operating revenue increased 8.5% to $161.9 billion. The industries—comprising computer systems design and related services; software publishers; and computing infrastructure providers, data processing, web hosting, and related services—continued to expand their client base amid an evolving, technology-driven business environment in Canada and internationally.

Computer systems design and related services

In 2024, operating revenue in the computer systems design and related services industry rose 6.5% to $113.0 billion. Revenue remained concentrated in Ontario (51.3%), followed by Quebec (23.8%), British Columbia (13.7%) and Alberta (6.8%). Information technology technical consulting services (29.8%) represented the largest source of revenue. Information technology technical support services for hardware or software (9.0%) and other custom software development services (9.0%) were also significant contributors.

Canadian clients made up 75.4% of total revenue, while international clients contributed 24.6%. E-commerce transactions accounted for 16.8% of all sales in 2024.

Operating expenses reached $105.4 billion in 2024, up 5.6% from the previous year. Salaries, wages, commissions and benefits remained the largest expenditure category (46.4%). The operating profit margin for computer systems design and related services increased from 6.0% a year earlier to 6.8%.

Software publishers

Software publishers reported $27.9 billion in operating revenue in 2024, up 15.6% from the previous year. Application software continued to generate the largest share of sales (62.9%), followed by system software (13.5%).

International clients accounted for just over two-thirds (68.8%) of sales, while Canadian businesses accounted for 31.2% of sales. E-commerce activity comprised 57.3% of all sales in 2024, an increase of 13.9 percentage points from 2019. This is consistent with the industry's reliance on cloud-based licensing and subscription models, which are transacted primarily online. In 2024 the share of sales attributable to e-commerce remained well above the level seen before the COVID-19 pandemic (43.4%).

Operating expenses grew 12.0% to $26.6 billion in 2024. Salaries, wages, commissions and benefits were the largest cost component (32.4%). The operating profit margin for software publishers rose to 4.7%.

Computing infrastructure providers, data processing, web hosting, and related services

The computing infrastructure providers, data processing, web hosting, and related services industry generated $20.9 billion in operating revenue in 2024, an increase of 10.5% from 2023.

Operating expenses also rose, up 6.6% to $20.1 billion in 2024, resulting in an operating profit margin of 4.1% for computing infrastructure providers, data processing, web hosting, and related services. Salaries, wages, commissions and benefits increased 10.5%. For the first time, information and document transformation services (37.6%) represented the single largest category of sales. This was followed by hosting and information technology infrastructure provisioning services, which made up 33.3%.

Canadian businesses represented 71.0% of the industry's total sales, while exports accounted for 29.0%. E-commerce transactions contributed 55.3% of total sales in 2024, up from 49.7% the previous year.

Sector trends in 2025

The Canadian computer services sector continued to experience volatility in 2025. Sector analysts expect that growth in artificial intelligence could lead to shortages of computer components, such as random access memory (RAM) and microchips. Monthly gross domestic product for the software publishers, computer infrastructure providers, and computer systems design and related services industry rose 1.1% during the period from January to November 2025. Employment in computer systems design and related services edged up 0.4% over the same period.

Comprehensive financial data for these industries for 2025 will be released after the survey is completed in 2026.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).