Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
March 12, 2025
Image: Unsplash/Benjamin Sow
Since 2019, Canada's digital sector has significantly outperformed the broader economy's growth, and projections indicate that it will advance at a CAGR of 9% throughout 2025. Within the digital economy, mobile application development and support are critical, allowing businesses to align with current and prospective customers. Artificial intelligence, high bandwidth 5G connections, and on-device machine learning will bring about entirely new categories of mobile applications. The outcome is a strong demand for Canadian app economy workers and improvements in the inflation-adjusted economy, which benefits people in all parts of the country. Canada strives to create an environment conducive to growth by funding research and innovation, creating fair taxation rules, and fostering consumer confidence and protection,
Smartphones are the most rapidly adopted technology in human history, becoming a mass-market product that is central to people's lives. The average volume per person in the Canadian market is poised to be 0.4 pieces in 2025 as the country is experiencing a surge in demand for devices with advanced camera features. A generation ago, the idea that the Internet and smartphones would connect almost all Canadians was, in many cases, inconceivable. Life has become impossible without mobile technology: you message friends, scroll social media, and take care of personal admin. In an increasingly connected world, giving up your smartphone is a privilege you can't afford.
The way apps are ranked and displayed in digital storefronts influences which ones are eventually purchased or downloaded. Ranking factors include but aren't limited to app name, subtitle, keywords used, downloads, user ratings, and reviews; app rankings make available objective and relevant information to guide consumer purchases. The app development market is driven by small firms and individuals who have diverse technical skill sets and are often considered to be strong users of information and communication technologies. The total revenue in the app market in Canada is forecast to experience significant growth in all segments in 2027, reaching $10.79 billion.
The 21st century has given rise to great changes in consumer habits and expectations, and to drive discovery, engagement, and monetization of their intellectual property and services, companies require holistic strategies that operate across user-generated content and interactive and immersive gaming. iGaming has become a vital cultural force shaping the present and future of entertainment. In 2021, the Ontario government passed a regulation to create a subsidiary of the Alcohol and Gaming Commission of Ontario, iGaming Ontario, which develops and executes operating agreements with private Internet gaming operators. The Criminal Code of Canada prohibits commercial gaming lest it's conducted and managed by a province.
The Internet has changed the way people engage in many activities, including gambling, with virtually mediated casino games now readily accessible; new sites are available every year. Mobile gambling, a new type of cultural practice, brings together gambling, social networking, and gaming. Names like Monro or Lucky Ones, top-rated by the experts, bring casino apps in Canada for real money to players' fingertips, so gone are the days of running back to the desktop to play slots or poker. Reviews help bettors understand which ones are worth their time and which ones should be deleted after a few uses.
The smartphone penetration rate has enabled iGaming developers and publishers to avoid hardware restrictions and improve accessibility for players, who can enjoy high-quality experiences on the go. Active players aren't limited to adolescents or young adults, contrary to popular opinion. Gambling is common among those aged 45 to 65, and it's a leisure activity they participate in in the evenings or weekends. When the main driving force behind using casino apps is escaping anxiety and loneliness, the odds of experiencing gambling-related harms are lower. In December 2024, online gambling spending reached an all-time high of $7.8 billion, clearly beating the previous year's results.
Thinking globally is one of the key forces of Canadian app developers who have an opportunity to capture a big part of the market. Skilled professionals leverage several platforms to reach the global market of roughly 5 billion smartphone users, including notable examples like Google's Android and Apple's iOS. Nevertheless, they use at least one store besides Google Play or the App Store, such as Huawei AppGallery and Samsung Galaxy Store. There's an urgent need for expertise in programming languages like Kotlin, Java, Swift, C#, Python, or Dart, so mobile app development remains a lucrative career path in 2025.
According to the Progressive Policy Institute, the number of jobs in Canada's app economy has been slowly but surely growing since April 2024, none of which existed years ago. Examples include but aren't limited to app developers, software engineers whose work demands knowledge of mobile applications, and security engineers to spot vulnerabilities in the code. Non-IT jobs are sales, marketing, finance, human resources, or administrative staff. Canada's app industry is larger than that of Australia but smaller than the app industry in the United Kingdom, Germany, or France; the intensity of the app economy is similar to France and the United Kingdom.
Canada's digital sector continues to grow in scale and economic value, with online marketplaces – or app stores, if you prefer – providing convenient distribution options for reaching consumers where it matters. The casino and games market is projected to reach a volume of $10.80 billion in 2025, driven by convenience, accessibility, incentives, and regulation. The growing importance of smartphones in Canadian society presents a chance to deliver transformational changes, including employment creation, which helps the economy become stable. With sufficient training and orientation, Canada's software talent can replicate earlier successes in the expanding sector.
We don't know what the future holds, but we're putting our trust in mobile applications. One potential direction for the future is web-app integration, which allows for the seamless transfer of data regardless of their make.
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