As per MRFR analysis, the Canada AI in IoT Market Size was estimated at 373.48 (USD Million) in 2023.The Canada AI in IoT Market is expected to grow from 478.8(USD Million) in 2024 to 1,540 (USD Million) by 2035. The Canada AI in IoT Market CAGR (growth rate) is expected to be around 11.205% during the forecast period (2025 - 2035)
Key Canada AI in IoT Market Trends Highlighted
The tech environment in Canada has been increasingly shaped by the incorporation of artificial intelligence (AI) into the Internet of Things (IoT). The strong need for smart city solutions and the government's encouragement of technological innovation are major factors driving this expansion.AI-powered IoT technologies are being adopted by Canadian communities to improve urban infrastructure, expedite public services, and raise citizens' standards of living. This change is a major force behind the development of AI in the IoT market since it is consistent with the country's emphasis on efficiency and sustainability.
Businesses might investigate a number of opportunities in this expanding market. Start-ups and established companies are encouraged by the Canadian tech ecosystem to invest in AI solutions that may be used in a variety of industries, such as transportation, healthcare, and agriculture.There is a clear route for the development of IoT devices that are integrated with AI to offer actionable insights as industries work to better utilize data for decision-making. Additional chances for innovation are provided by the government's dedication to digital transformation and the encouragement of industry-academia collaborations.
According to recent trends, Canadian companies are paying more attention to data security and privacy, particularly as the number of connected devices rises. As technology develops, regulations and policies are changing to address these issues and maintain customer confidence.Additionally, edge computing is becoming more popular in Canada since it makes it possible to process data closer to its source, improving operational efficiency. All things considered, Canada is well-positioned to lead the AI in IoT market because to its dedication to implementing cutting-edge technology and its abundance of technological resources.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Canada AI in IoT Market Drivers
Government Initiatives and Funding
The Canadian government has been actively promoting the growth of artificial intelligence technologies and the Internet of Things through various initiatives and funding programs. For example, the Canadian government's Innovation, Science and Economic Development department reported a commitment of over CAD 1 billion towards advancing AI and supporting innovative technologies including IoT.This influx of funding not only encourages Research and Development in the Canada AI in IoT Market, but also aids in the manufacturing and deployment of smarter IoT solutions across various sectors such as healthcare, agriculture, and smart city infrastructure.
Taking cities like Toronto and Vancouver into account, they have been recognized for their burgeoning tech ecosystems, which attracts both national and international investments, effectively creating a favorable environment for the growth of AI in IoT solutions.The significant government backing is projected to catalyze the expansion of the Canada AI in IoT Market by enhancing connectivity, efficiency, and productivity in various applications.
Increased IoT Adoption Across Industries
In Canada, there has been a substantial uptick in the adoption of Internet of Things solutions by various industries, including manufacturing, transportation, and smart cities. According to the Canadian Wireless Trade Association, approximately 60% of Canadian businesses are planning to implement IoT technologies in their operations over the next year.This increased adoption leads to a higher demand for artificial intelligence capabilities integrated within IoT systems, which in turn fuels the Canada AI in IoT Market.
Organizations like Telus and Rogers Communications are leading this charge by providing advanced IoT solutions that incorporate AI for improved analytics and automation, further supporting this growing trend and positioning themselves as key players in the evolving market landscape.
Rise of Smart Cities Initiatives
The Canadian smart city initiatives are becoming increasingly prevalent, driven by the need for enhanced urban infrastructure, improved public services, and optimized resource management. Projects in cities like Toronto and Montreal focus on integrating AI and IoT technologies to better manage traffic, energy, and waste.According to the Canadian Smart Cities Challenge, more than 200 communities expressed interest in submitting proposals to create smarter cities, showcasing a clear public commitment to leverage cutting-edge technologies.
This rapid development of smart cities in Canada is propelling the Canada AI in IoT Market forward as municipalities invest in AI-powered IoT applications to create sustainable and efficient urban environments.Moreover, this trend is supported by organizations such as the Federation of Canadian Municipalities, which emphasizes the importance of technological advancement in city planning and management.
AI in IoT Market Component Insights
The Component segment of the Canada AI in IoT Market plays a vital role in enhancing the efficiency and functionality of IoT applications across various industries. Within this segment, Platforms, Software Solutions, and Services represent the core components that drive innovation and open up opportunities for businesses seeking to integrate artificial intelligence into their Internet of Things devices.
Platforms serve as the backbone of the IoT ecosystem, enabling seamless communication and data exchange between devices and applications. They not only facilitate connectivity but also provide essential tools for developers to build and deploy AI-driven applications, emphasizing the importance of scalability and interoperability.In the Canadian context, the growing focus on smart cities and industrial automation leverages these platforms to enable real-time decision-making and improve public services, showcasing their significance in advancing Canada’s technological landscape.
Software Solutions, on the other hand, empower organizations to harness the vast amounts of data generated by IoT devices. By utilizing advanced algorithms, predictive analytics, and machine learning techniques, these solutions transform raw data into actionable insights that can enhance operational efficiency and user experiences.In Canada, industries such as healthcare, agriculture, and energy are rapidly adopting these software solutions to streamline processes and improve outcomes, highlighting their transformative impact on traditional systems.
Services associated with the Canada AI in IoT Market address the critical need for implementation, maintenance, and support of AI and IoT technologies. As organizations embark on their digital transformation journeys, they often require specialized expertise to navigate the complexities of integration and management.The demand for consulting, training, and support services is surging, as companies seek to maximize the return on investment from their IoT initiatives. This trend reflects a growing recognition of the strategic importance of having skilled personnel who can effectively deploy AI capabilities within IoT frameworks.
In summary, the Component segment is pivotal in shaping the future of the Canada AI in IoT Market. The interplay of Platforms, Software Solutions, and Services drives advancements in technology and application development, enabling Canadian enterprises to leverage AI and IoT for enhanced performance and competitive advantage.As Canadian organizations increasingly prioritize digital transformation, the significance of this segment will continue to grow, positioning Canada as a leader in the global IoT landscape. Through strategic investment and innovation, the Canada AI in IoT Market is poised to foster growth and development across multiple sectors, enhancing both economic efficiency and societal well-being.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in IoT Market Technologies Insights
The Technologies segment of the Canada AI in IoT Market is crucial in driving innovation and operational efficiency across various industries. Key technologies like Machine Learning (ML) and Deep Learning play an essential role in data processing and automation, enabling advanced analytics and predictive modeling.
ML applications are finding extensive use in sectors such as healthcare for predictive diagnostics and in agriculture for optimizing resource utilization. Meanwhile, Natural Language Processing (NLP) enhances human-computer interactions, making it significant for customer service and engagement across digital platforms.
In Canada, companies are increasingly adopting these technologies, reflecting an overall market trend towards leveraging AI for smarter IoT solutions. The collaboration between government policies aimed at fostering technology adoption and industry-led initiatives further solidifies this segment's importance.
Furthermore, the growing demand for smart devices and automation will likely propel the development and integration of ML and NLP technologies, solidifying their dominance in the Canadian market landscape. As these technologies continue to evolve, they present substantial opportunities for innovation and economic growth within the region.
AI in IoT Market Vertical Insights
The Canada AI in IoT Market exhibits significant potential across various verticals, driven by the increasing digitization and automation across industries. In the manufacturing sector, AI and IoT integration enhances predictive maintenance and boosts productivity.The energy and utilities segment adopts smart grid technologies, aiming for improved efficiency and sustainability, aligning with Canadian government initiatives promoting renewable energy. Transportation and mobility leverage AI for better logistics and traffic management, significantly contributing to smart city development.
The BFSI sector is increasingly utilizing AI for risk assessment and fraud detection, ensuring regulatory compliance and customer satisfaction. Government and defense applications focus on cybersecurity and public safety, utilizing real-time data analysis for improved decision-making.
Retail is experiencing transformation through personalized customer experiences and optimized supply chains, boosting sales and efficiency. In healthcare and life sciences, the use of AI in IoT facilitates patient monitoring and enhances operational efficiency in medical facilities.
The telecom sector is expanding its AI applications to enhance network management and customer service. Overall, these verticals collectively drive the Canada AI in IoT Market, showcasing vast growth opportunities and diverse applications enhancing productivity, efficiency, and sustainability across industries.
Canada AI in IoT Market Key Players and Competitive Insights
The competitive landscape of the Canada AI in IoT Market is characterized by rapid technological advancements and the growing integration of artificial intelligence into Internet of Things applications. Organizations across various industry verticals are increasingly adopting AI-driven IoT solutions to harness data analytics, enhance operational efficiencies, and drive innovation.
This competitive environment is shaped by a diverse range of players, from startups to established tech firms, all vying to deliver cutting-edge solutions that address the unique needs of Canadian consumers and enterprises.The market dynamics are influenced by collaboration, investment in research and development, and strategic partnerships aimed at accelerating the adoption of AI technologies within IoT ecosystems.The focus on creating smart cities, optimizing supply chains, and improving predictive maintenance further intensifies the competition as companies strive to differentiate themselves by offering novel solutions that capitalize on the potential of AI in IoT.
Key Companies in the Canada AI in IoT Market Include
Canada AI in IoTMarket Developments
To strengthen its artificial intelligence capabilities, Telus said in September 2025 that it will pay $539 million to acquire the remaining shares of its digital services division, Telus Digital. OpenText unveiled their Aviator IoT platform in August 2025, fusing AI and IoT to provide supply chain monitoring, asset tracking, predictive maintenance, and safe connected device management.Accenture joined forces with Schaeffler and NVIDIA in July 2025 to create digital twins and robots driven by AI for supply chain optimization. Shopify improved e-commerce experiences by adding Shopify Magic and Sidekick to its AI portfolio in June 2025.
With an emphasis on scalable and secure infrastructure, Cisco unveiled AI-driven networking solutions for industrial IoT applications in May 2025. Google pledged $13 million in April 2025 to fund AI workforce development initiatives across Canada through its AI Opportunity Fund.With an emphasis on secure communications and the Internet of Things, BlackBerry stated in March 2025 that it anticipated an increase in IoT revenue to $225 million to $235 million for fiscal 2025. Microsoft stated in February 2025 that it would invest $2.7 billion over three years in Canada to improve its AI and cloud infrastructure.
Canada AI in IoT Market Segmentation Insights
AI in IoT Market Component Outlook
AI in IoT Market Technologies Outlook
AI in IoT Market Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 373.48(USD Million) |
| MARKET SIZE 2024 | 478.8(USD Million) |
| MARKET SIZE 2035 | 1540.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 11.205% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | RoboSense, Element AI, Sierra Wireless, Google, OpenText, Accenture, Shopify, Cisco, Telus, AWS, CGI, IBM, BlackBerry, Microsoft, Ubisoft |
| SEGMENTS COVERED | Component, Technologies, Vertical |
| KEY MARKET OPPORTUNITIES | Smart city infrastructure development, Agricultural automation solutions, Healthcare monitoring systems, Enhanced predictive maintenance, Energy management optimization |
| KEY MARKET DYNAMICS | Increased connectivity and automation, Rising demand for smart cities, Enhanced data analytics capabilities, Government support and investment, Growing adoption of edge computing |
| COUNTRIES COVERED | Canada |
Frequently Asked Questions (FAQ):
The Canada AI in IoT Market is expected to be valued at 478.8 million USD in 2024.
By 2035, the Canada AI in IoT Market is expected to reach a value of 1,540.0 million USD.
The expected CAGR for the Canada AI in IoT Market from 2025 to 2035 is 11.205%.
The market value for Platforms in 2024 is 143.4 million USD and is projected to grow to 490.0 million USD by 2035.
In 2024, the value of Software Solutions in the Canada AI in IoT Market is estimated at 142.2 million USD.
The Services segment is projected to reach a value of 580.0 million USD by 2035.
Some of the major players include RoboSense, Element AI, Sierra Wireless, Google, OpenText, Accenture, Shopify, Cisco, Telus, AWS, CGI, IBM, BlackBerry, Microsoft, and Ubisoft.
Key applications driving growth include smart city development, industrial automation, healthcare, and smart consumer products.
Challenges include data privacy concerns, interoperability between devices, and the need for skilled labor in AI and IoT sectors.
The expected growth drivers include rising demand for automation, advancements in AI technologies, and increased investment in IoT infrastructure.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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