Information Technology

IT Consulting

The Canadian IT consulting market is a strategic pillar for businesses aiming to optimize their digital infrastructure, secure their data, and accelerate transformation.
With a size of nearly $93 billion in annual revenue, it is one of the largest and most dynamic segments within professional services, naturally attracting investors seeking high-value, recurring acquisition targets.

However, the sector is highly fragmented: no single player holds more than 5% market share, opening the door for consolidation deals and the creation of integrated groups capable of delivering turnkey services.
For M&A advisory firms, this environment offers a wide range of opportunities—from acquiring niche specialists (cloud, cybersecurity, AI) to forming partnerships that broaden a firm’s overall service offering.

Key Market Indicators in Canada

The indicators below provide a quick snapshot of the sector’s depth and current momentum. They highlight both the scale of IT projects and the large pool of potential acquisition targets.

Market Size

$92.7B

Estimated total revenue in 2024, reflecting an average annual growth of 3.2% since 2019.

Active Firms

96 094

Number of entities offering system design and management services, demonstrating a dense entrepreneurial landscape ideal for a buy-and-build strategy.

CAGR

5.3%

Projected Growth Over the Next 5 Years

Outlook and Considerations for Investors

Demand for IT consulting continues to be driven by:

  • Private investment in software,
  • Cloud migration, and
  • The rise of big data analytics.

By 2029, revenues are expected to grow by approximately 1.8% annually, supported by:

  • The adoption of generative AI, and
  • The increasing need for cybersecurity across all economic sectors.

From a transaction standpoint, two trends are emerging:

  1. Horizontal consolidation of firms to expand their range of expertise, and
  2. Vertical integration with software providers to capture more value.

Buyers should also assess:

  • A target’s ability to maintain margins—largely influenced by salary-heavy cost structures, and
  • Its exposure to proprietary technologies from major software vendors.

In a landscape where expertise and agility are paramount, the most attractive targets are those that can secure recurring, high-tech contracts and strengthen a portfolio focused on digital transformation.

The indicators below provide a quick snapshot of the sector’s depth and current momentum. They highlight both the scale of IT projects and the large pool of potential acquisition targets.

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