Data crunch: Companies seeking to improve operational efficiencies will contribute to industry growth

The Data Processing and Hosting Services industry in Canada provides data analytics and management services used for a variety of information technology (IT)-related activities. The industry's key clients are located in the financial, advertising and e-commerce sectors, which compile large amounts of consumer and financial data that need to be managed and analyzed to produce actionable insights for these businesses. Over the five years to 2019, the industry performed well as businesses increasingly outsourced IT infrastructure needs and industry operators advanced their data analysis techniques. Industry services are usually provided on a subscription basis and have been in strong demand over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • More and more operators are outsourcing to specialized companies, which has boosted demand for industry services
  • New data processing and hosting companies have grown tremendously
  • The financial services sector will be an important contributor to industry demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Data Processing and Hosting Services industry in Canada is in the growth stage of its life cycle, characterized by rising enterprise formation, steadily improving demand, technological advancement and evolving markets. Over the 10 years to 2024, IBISWorld expects industry value added (IVA), which measures an industry’s contribution to the overall economy, to increase at an annualized rate of 4.7%. Canadian GDP is expected to grow an annualized 1.7% during the same period, meaning that the industry’s contribution will far outpace GDP growth. Central to the industry’s growth is the increased adoption of technology, spurring demand for industry services and encouraging rapid technological development...purchase to read more.

    Additional Insights for the Data Processing & Hosting Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Data Processing & Hosting Services Industry are

  • Effective quality control
  • Having a cost-effective distribution system
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Demand from e-commerce and online auctions and Demand from professional, scientific and technical services in the Data Processing & Hosting Services industry impact industry performance..

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    What's in this report

    What is the Data Processing & Hosting Services Industry?

    Operators in this industry provide specialized data processing or hosting activities. Data processing services provide specialized reports from information supplied by clients. Hosting services can include web and application hosting and range from automated data entry to processing such data. This industry does not include the websites themselves or the revenue earned by their owners.

    Industry Products
  • Business process management and website hosting services
  • Application service provisioning
  • Data storage and management services
  • Information and document transformation services
  • Other services
  • Industry Activities
  • Application hosting
  • Application service provider services
  • Data entry services
  • Data processing computer services
  • Data processing
  • Database management
  • Web hosting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from e-commerce and online auctions
  • Demand from professional, scientific and technical services
  • Corporate profit
  • Number of mobile telephone subscriptions
  • Canadian effective exchange rate index
  • Demand from it consulting
  • Overnight rate

  • Current Performance
  • Industry operations
  • Increasing technology
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing investment
  • Structural changes and new products
  • An expanding landscape
  • Table: Data Processing & Hosting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Data Processing & Hosting Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance In Canada
  • Public Administration in Canada
  • Internet Publishing & Broadcasting in Canada

  • Key Selling Industries
  • Computer Manufacturing in Canada
  • Computer Peripheral Manufacturing in Canada
  • IT Consulting in Canada
  • Software Publishing in Canada
  • Wired Telecommunications Carriers in Canada

  • Products & Services
  • Information and document transformation services
  • Application service provisioning
  • Business process management and website hosting services
  • Data storage and management services
  • Other services
  • Chart: Data Processing & Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
  • Economic factors
  • Global IT market

  • Major Markets
  • Businesses
  • Sales outside of Canada
  • Government, nonprofit and other public institutions
  • Individuals and households
  • Chart: Major Market Segmentation for the Data Processing & Hosting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing & Hosting Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Processing & Hosting Services Industry

  • Industry Globalization
    International Business Machines Corporation, Hewlett Packard Enterprise Company, Inc.,
  • Table: International Business Machines Corporation - financial performance
  • Table: Hewlett Packard Enterprise Company - financial performance
  • Table: Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Data Processing & Hosting Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Data Processing & Hosting Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Application Service Provider (Asp)
  • A business that provides computer-based services to customers over a network.
  • Artificial Intelligence (Ai)
  • Connected to machine learning, AI refers to technology that can learn on its own, perceiving its environment and reacting to external stimuli.
  • Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside servers accessible via the internet and managed by third-party operators.
  • Data Warehousing
  • The collection of data and the establishment of a common format for different data sets to permit them to work together and be stored in one place.
  • Information Technology (It)
  • The acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by microelectronics-based computing and telecommunications.
  • Machine Learning
  • A branch of computer science that uses statistical methods to give computers the ability to improve performance with data without being programmed to do so each time new data is inputted.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • Software As A Service (Saas)
  • Software that is deployed over the internet and runs behind a firewall in a person's local area network or personal computer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Data Processing & Hosting Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Data Processing & Hosting Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Data Processing & Hosting Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Data Processing & Hosting Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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