Canada Cybersecurity Solutions Market

Canada Cybersecurity Solutions Market Size and Share:

The Canada cybersecurity solutions market size was valued at USD 3.61 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 10.14 Billion by 2033, exhibiting a CAGR of 11.25% from 2025-2033.  The market is driven by rising cyber threats, increasing digital transformation across industries, and stricter government regulations on data privacy and compliance. Growing adoption of cloud services, remote work, and Internet of Things (IoT) devices has expanded the attack surface, pushing organizations to invest in advanced security tools. Additionally, heightened awareness of ransomware and phishing attacks, coupled with financial institutions’ demand for stronger protection, fuels Canada cybersecurity solutions market share.

One of the major drivers of the Canada cybersecurity solutions market is the growing frequency and sophistication of cyberattacks. About 28% of Canadian businesses experienced a successful ransomware attack in 2024, compared to 17% in 2021, highlighting the sharp rise in cyber threats. Organizations across sectors including financial services, healthcare, and government handle sensitive personal and operational data, making them prime targets. The expansion of digital infrastructures, cloud adoption, and reliance on online platforms further increases vulnerabilities. The financial and reputational costs of breaches have made cybersecurity a top priority. As a result, companies are rapidly adopting endpoint security, threat intelligence, and real-time monitoring solutions.

Another key driver of the Canada cybersecurity solutions market is the rapid adoption of cloud computing, digital platforms, and hybrid working models. As organizations migrate data and operations to the cloud, they face new risks such as misconfigurations, unauthorized access, and regulatory compliance challenges. The shift to remote work has further expanded vulnerabilities, exposing networks and endpoints to cyber threats. In fact, 81% of Canadian respondents believe remote logins have increased cybersecurity risks, with many worried about unregistered devices. To address these challenges, businesses are investing in cloud security, identity and access management (IAM), and zero-trust frameworks, driving Canada cybersecurity solutions market demand for advanced, resilient cybersecurity solutions.

Canada Cybersecurity Solutions Market Trends:

Growing Adoption of Cloud-Based Security Solutions

The cybersecurity solutions market in Canada is witnessing a significant trend toward cloud-based security solutions as more businesses migrate their operations to the cloud. In Canada, 29% of the IT budget of all Canadian companies was allocated to public clouds in 2020. Organizations place security solutions for cloud data protection as the top priority because their dependency on cloud storage continues to rise. Cloud-based solutions enable business security needs to scale with enterprise growth through their flexible and scalable features. Cloud security has become essential for cybersecurity strategies because cloud adoption expanded rapidly after the remote work transformation initiated by the COVID-19 pandemic. Companies are adopting solutions such as cloud encryption and cloud access security brokers (CASBs) to ensure data security and compliance with privacy regulations, which is driving the Canada cybersecurity solutions market growth. As cloud services continue to expand, the demand for robust cloud-based security solutions in Canada is expected to grow, creating significant opportunities for cybersecurity providers.

Increasing Focus on AI and Machine Learning for Cyber Threat Detection

Artificial Intelligence (AI) and Machine Learning (ML) are the Canada cybersecurity solutions market trends moving toward more advanced products for detection and response against cyber threats. It means that classical safety measures are inefficient against the growth complexity of cyberattacks; therefore, analyses of huge volumes of data require AI and ML while indicating anomalies on a real-time basis. For instance, in 2023, 72% of SMB executives in Canada reported that their companies were the target of cyberattacks within the previous 12 months, as per the Canadian Cyber Threat Exchange (CCTX). Between 2021 and 2023, the total amount spent on recovering from cyberattacks rose from USD 600 Million to USD 1.2 Billion. Moreover, the percentage of individuals who experienced a cyberattack in Canada reached 70% in 2022, recording a substantial increase in comparison to 2020 at 58%, according to Statistics Canada. AI and ML solutions can identify malicious activity, assess risk levels, and respond in real-time to zero-day threats, making a system generally faster while reducing human elements of error. AI-based cybersecurity solutions have become the new favorite for Canadian organizations, mainly in areas such as finance, healthcare, and government, where more complex threats like APTs need to be fended off. With the development of AI and ML, their cybersecurity application is naturally going to surge further ahead. These would create a positive Canada cybersecurity solutions market outlook for the purposes of AI-driven solutions in cybersecurity.

Growing Concern Over IoT Security

The proliferation of IoT devices in Canada has heightened concerns about network security, driving the demand for IoT-specific cybersecurity solutions. As IoT devices are increasingly integrated into industrial systems, healthcare, and smart cities, they create additional entry points for cyberattacks, making them highly vulnerable to exploitation. Most IoT devices do not have inbuilt security features. This leaves networks exposed to threats such as data breaches and unauthorized access. The Canadian business community and government are starting to realize that these vulnerabilities exist, and the IoT security solutions that will be implemented include features for authenticating devices, encryption, and network monitoring of critical systems. Hence, the proliferation of IoT smart homes, connected cars, and industrial IoT only has emphasized the need for securing IoT ecosystems. According to Statistics Canada, the percentage of individuals using Internet-connected smart home devices in Canada reached 47% in 2022, recording a notable increase in comparison to 2020 at 42%. With the potential to see many devices going online in the coming years, the perceived need for specialized IoT security solutions will increase, and thus, with high demand, position IoT security as a critical trend in Canada cybersecurity solutions market growth.

Canada Cybersecurity Solutions Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Canada cybersecurity solutions market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on component, deployment type, user type, and industry vertical.

Analysis by Component:

• Solutions
  • Identity and Access Management (IAM)
  • Infrastructure Security
  • Governance, Risk and Compliance
  • Unified Vulnerability Management Service Offering
  • Data Security and Privacy Service Offering
  • Others
• Services
  • Professional Services
  • Managed Services

Cybersecurity solutions in Canada cover diverse offerings, including Identity and Access Management (IAM) to control user permissions, Infrastructure Security to protect networks and systems, and Governance, Risk, and Compliance tools for regulatory adherence. Unified Vulnerability Management, Data Security, Privacy solutions, and other advanced tools ensure comprehensive protection against increasingly complex cyber threats.

Services in the Canada cybersecurity market include Professional Services, such as consulting, risk assessment, and system integration, alongside Managed Services that provide continuous monitoring, detection, and incident response. These offerings are crucial for organizations lacking in-house expertise, enabling them to strengthen resilience and maintain robust security postures against evolving cyber risks.

Analysis by Deployment Type:

• Cloud-based
• On-premises

Cloud-based deployment is rapidly growing in Canada’s cybersecurity market as businesses shift operations to cloud platforms. It offers scalability, flexibility, and cost efficiency while enabling remote work security. Cloud security solutions protect data, applications, and infrastructure against threats, ensuring compliance and resilience in increasingly digital and distributed business environments.

On-premises deployment remains vital for organizations in Canada requiring greater control, customization, and regulatory compliance. It is preferred by sectors handling sensitive data, such as government, healthcare, and finance. Despite higher costs, on-premises cybersecurity provides enhanced data sovereignty, privacy assurance, and tailored protection aligned with specific organizational security policies and requirements.

Analysis by User Type:

• Large Enterprises
• Small and Medium Enterprises

Large enterprises in Canada drive significant demand for cybersecurity solutions due to complex IT infrastructures, vast data volumes, and higher exposure to targeted attacks. They invest heavily in advanced tools, AI-driven threat detection, and managed services to ensure compliance, safeguard operations, and strengthen resilience against evolving, large-scale cyber risks.

Small and Medium Enterprises (SMEs) in Canada are increasingly adopting cybersecurity solutions as digitalization and cloud adoption expand vulnerabilities. Limited budgets and expertise push SMEs toward cost-effective, scalable, and managed services. Growing awareness of ransomware and phishing threats further drives adoption, helping SMEs protect sensitive data and maintain business continuity.

Analysis by Industry Vertical:

• IT and Telecom
• Retail
• BFSI
• Healthcare
• Defense/Government
• Manufacturing
• Energy
• Others

The IT and Telecom sector in Canada drives cybersecurity demand due to high connectivity, vast data handling, and critical service delivery. With increasing cloud adoption, 5G expansion, and IoT integration, companies prioritize network security, identity management, and threat intelligence to ensure data privacy, safeguard infrastructure, and maintain uninterrupted digital services.

Retailers in Canada are adopting cybersecurity solutions to protect customer payment data, online transactions, and e-commerce platforms. Rising cases of fraud, phishing, and supply chain vulnerabilities demand secure payment gateways, data encryption, and compliance with privacy regulations, making cybersecurity essential for ensuring consumer trust and uninterrupted retail operations.

The BFSI sector in Canada is highly targeted due to sensitive financial data and digital banking growth. Cybersecurity investments focus on fraud detection, identity and access management, regulatory compliance, and secure transactions. Advanced solutions like AI-driven monitoring and threat prevention are crucial to safeguard customer assets and ensure trust in financial services.

Healthcare organizations in Canada face rising cyberattacks targeting patient records and connected medical devices. With stricter compliance requirements, they invest in data encryption, privacy solutions, and incident response. The adoption of telemedicine and digital health records further accelerates the need for robust cybersecurity to safeguard sensitive patient data and healthcare infrastructure.

The defense and government sector in Canada prioritizes cybersecurity to protect national security, critical infrastructure, and citizen data. Growing threats from state-sponsored actors and cyber espionage drive investments in advanced defense-grade security systems, governance, and risk management tools to ensure data sovereignty, operational continuity, and resilience against evolving digital threats.

The manufacturing sector in Canada is increasingly digitized with Industry 4.0, IoT, and smart factories, making cybersecurity vital. Threats like ransomware and industrial espionage target connected systems and supply chains. Companies invest in infrastructure security, vulnerability management, and endpoint protection to safeguard production processes, intellectual property, and operational technology networks.

Canada’s energy sector faces significant cyber risks due to reliance on critical infrastructure and smart grid technologies. Cyberattacks targeting utilities, pipelines, and power systems can disrupt national services. Investments in real-time monitoring, risk assessment, and infrastructure security are essential to protect energy supply chains and ensure operational continuity.

Other sectors, including education, transportation, and logistics, are also increasing cybersecurity adoption in Canada. With growing digitalization, online learning platforms, and smart mobility, these industries face risks from phishing, ransomware, and data breaches. They focus on cloud security, identity management, and compliance solutions to safeguard operations and sensitive user data.

Regional Analysis:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others

Ontario leads Canada’s cybersecurity market due to its concentration of financial institutions, technology companies, and government agencies. With Toronto as a financial hub, the region faces high cyber risk exposure. Investments focus on advanced threat detection, cloud security, and compliance, supported by strong innovation ecosystems and skilled cybersecurity talent.

Quebec’s cybersecurity market is growing, driven by its strong public sector, manufacturing base, and technology innovation. Montreal hosts numerous research initiatives, supporting advancements in AI-powered security. Rising adoption of cloud services and increased cyber threats push organizations in Quebec to invest in data protection, risk management, and managed security services.

Alberta’s cybersecurity demand is fueled by its energy sector, particularly oil and gas, which faces heightened cyber risks targeting critical infrastructure. Companies invest in securing industrial control systems, operational technology, and supply chains. The province is also adopting cloud and digital solutions, further driving the need for advanced cybersecurity measures.

British Columbia’s cybersecurity market is expanding due to its diverse economy, including technology, healthcare, and trade. Vancouver’s tech ecosystem fosters adoption of innovative security solutions. Increasing reliance on cloud platforms, cross-border commerce, and digital services drives investments in identity management, data security, and managed services to strengthen resilience.

Other Canadian regions, including Saskatchewan, Manitoba, and Atlantic provinces, are gradually increasing cybersecurity adoption. These areas, with growing digital infrastructure and expanding SMEs, focus on cost-effective, scalable solutions. Demand centers around cloud security, endpoint protection, and managed services to address rising cyber threats and compliance requirements across varied industries.

Competitive Landscape:

The competitive landscape is highly dynamic, characterized by the presence of global players, regional providers, and emerging startups offering specialized services. Competition is driven by innovation in advanced technologies such as AI, ML, and automation for threat detection and prevention. Vendors compete on factors like solution scalability, integration with existing IT infrastructure, and cost-effectiveness. The market also sees rising demand for managed security services, cloud security, and zero-trust frameworks, creating opportunities for differentiation. Strategic partnerships, acquisitions, and collaborations are common as companies aim to expand service portfolios and strengthen local presence. Overall, competition remains intense, with a focus on delivering end-to-end, customized cybersecurity solutions.

The report provides a comprehensive analysis of the competitive landscape in the Canada cybersecurity solutions market with detailed profiles of all major companies,

Latest News and Developments:

• August 2025: Snowflake officially finished the Canadian Centre for Cyber Security (CCCS) Protected B Assessment. The company now fulfills the CCCS Medium Cloud Security profile criteria for operations in both the Microsoft Azure Canada (Central) and the AWS Canada (Central) regions.
• June 2025: Plurilock Security Inc., an international provider of various cybersecurity solutions headquartered in Vancouver, established a new multi-year contract worth CAD 2.54 Million with a NASDAQ-listed company. This agreement highlights the increasing need for seamless, high-trust, execution-focused cybersecurity collaborations in the country.
• March 2025: Montreal-based Bell officially launched its Security-as-a-Service (SECaaS) cybersecurity solution, which is maintained on its sovereign cloud in Canada. This cutting-edge service offers exceptional cybersecurity solutions to private as well as public companies while guaranteeing that data stays inside Canadian borders and complies with regional privacy and security laws.
• March 2025: Dragos Inc., a renowned international provider of cybersecurity operational technologies, officially launched its Dragos Community Defense Program in Canada. This program offers free OT cybersecurity solutions for all time to gas, electric, and water providers in Canada who might otherwise find it difficult to obtain the necessary cybersecurity tools to protect their industrial operations.
• February 2025: SecurityScorecard established a partnership with Toronto-based KPMG to improve cybersecurity solutions across critical industries in Canada. As part of this partnership, SecurityScorecard MAX will now be available in the Canadian market, representing a significant step toward securing crucial infrastructure in the country.
• April 2024: IBM announced the expansion of its IBM Technology Expert Labs in Markham, Ontario, Canada. This initiative aims to assist both Canadian and international organizations in adopting and integrating advanced technologies, such as generative AI, including IBM's AI and data platform WatsonX, as well as hybrid cloud and cybersecurity solutions.

Canada Cybersecurity Solutions Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada cybersecurity solutions market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Canada cybersecurity solutions market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada cybersecurity solutions industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.