By: Mark Kelleher, Staff ReporterSeptember 17, 2018 09:45:23Canada’s tech sector is growing faster than many had expected and the sector is now worth more than $20 billion, according to a new study by research firm Deloitte.
The sector, which is already the fastest-growing in the country, is also growing at a faster pace than many of the most valuable companies in the world, the firm said.
It also forecast that by 2020, Canada’s technology sector will grow to $30 billion.
“The biggest growth opportunities lie in the fast-moving growth of the tech sector,” said Doug Britten, managing director of Deloittes Deloise in Vancouver.
“These opportunities will come at a cost to jobs, infrastructure, and competitiveness, and therefore the potential for an economic and job-killing tax hike.”
The report forecasts the tech industry will generate $20.6 billion in annual revenue by 2020 and $31.9 billion in 2019, according the report.
The report notes that the current tax system will need to be adjusted to account for the tech boom.
The industry is growing by a whopping 10.7 per cent annually and will reach $31 billion in 2020, which will surpass the $28.6-billion revenue in the US, the report said.
It says Canada will be a leader in the growth of this sector in the future.
It also predicts the number of Canadian jobs in the technology sector is expected to grow from 15.7 million in 2019 to 25.4 million by 2025.
That’s a big increase from the current 13.2 million jobs, according Deloite.
The Canadian government has invested heavily in technology, including funding the creation of the Canadian Digital Economy Strategy, which includes a national digital strategy and research projects.
The study estimates that the tech job market will be worth $21.3 billion in 2021 and will grow by $7.9 trillion over the next decade.
The number of jobs in Canada is projected to grow by 10.8 per cent in 2021, up from 10.6 per cent the previous year, the study said.
That is a slight uptick from the 7.9 per cent projected increase in 2021.
The Deloist report predicts the Canadian economy will grow at an average annual rate of 5.6%, up from 4.9% in 2020.
That will be faster than any other country in the developed world.
It expects that by 2025, the country’s economy will be valued at $30.2 trillion.
It said it expects that Canada will remain a key hub for technology and will remain among the top four tech destinations in the G20.
“Canada’s technology industry will continue to expand, with the vast majority of growth coming from emerging markets and the emerging markets will continue in their leadership positions,” it said.
“It is important to note that the forecasted growth will be fuelled by a rapid pace of technological innovation.
Technology will continue its rapid growth in Canada and will continue on a global scale.”