Smart city technology is a rapidly evolving field, with many different players jockeying for position. To stand out from the crowd, it’s crucial to have a deep understanding of the Canadian market, as well as a clear strategy for reaching key decision-makers and influencers.
Canada, known for its innovation and sustainability, is rapidly advancing towards building smart cities. With the exponential growth of urbanization, Canadian cities are leveraging technological advancements to improve the standard of living for its citizens. In recent years, several notable developments have taken place in the sector of smart cities in Canada.
SUCCESS STORIES
One prominent city in Canada that has embraced the smart city concept is Montreal. The city has been actively investing in smart city technologies, such as intelligent traffic management systems and smart lighting, to create a more sustainable and environmentally friendly city. Montreal has also established a smart city research and development centre, the Institute for Data Valorization (IVADO), to collaborate with industry and academic partners in the development of new technological solutions.
In Laval, the provincial government has launched a smart city program called “Innovation Laval” to encourage the use of innovative technologies in the city’s infrastructure. The program includes initiatives such as smart waste management, electric vehicle charging stations, and intelligent transportation systems.
Quebec City is another city in Canada that has dedicated resources to becoming a smart city. The city has implemented a real-time parking management system, smart traffic signals, and a connected bike-sharing system to encourage sustainable transportation.
Ottawa, the capital city of Canada, has also made significant investments in smart city technologies. The city has implemented a smart lighting system that adjusts the lighting levels based on activity levels in the area, as well as an intelligent traffic management system that utilizes real-time data to improve traffic flow.
CANADIAN SMART CITY ECOSYSTEM
Key Canadian business people in the smart city sector include Chuck Hounsell, CEO of Energate; Rick Huijbregts, Vice President of Digital Transformation and Innovation at George Brown College; and Ali Zahidi, CEO of Punchcard Systems. These business leaders have been at the forefront of advancing smart city technologies in Canada. They are also advocates of innovation, which makes them the ideal partners or mentors for foreign start-ups.
Several organizations have emerged in Canada to support the development and implementation of smart city technologies. The Smart Cities Challenge, launched by the federal government, provides funding to cities that develop innovative solutions to urban challenges. Launched by the federal government, this program encourages cities to develop innovative solutions for their local challenges, such as urban mobility, energy efficiency, and social inclusivity. Several Canadian cities, including Montreal, Vancouver, and Toronto, have participated in this program.
Additionally, the Canadian Smart Cities and Communities Coalition, a network of government, academic, and private sector organizations, supports the development of smart cities across the country. Another major player in Canada’s smart city industry is the Smart City Alliance, a national organization that brings together government, industry, and academia to drive innovation and collaboration in the space. The alliance has over 150 members and partners, including major global corporations like Cisco, Siemens, and Microsoft. BlueBear Capital is also makes investments in this sector.
Several knowledge centres and organizations have been established in recent years, promoting research and development in smart cities. The Vector Institute for Artificial Intelligence and the Canadian Urban Institute are among them. These research institutions facilitate collaboration between government bodies, researchers, and the private sector to transform Canadian cities into intelligent communities.
INVESTORS
Public Sector Pension Investment Board (PSP): PSP operates as one of Canada’s premier pension investment managers, with over $160 billion in Assets under Management (AuM). The company is focused on securing long-term investment objectives for the pension plans, and it has, over the years, been an active player in Canada’s smart cities, most notably, their investments in Waterfront Toronto.
OMERS: OMERS is a pension plan for Ontario’s teachers and other municipal plan members, with over $97 billion in AuM. The organization is highly seasoned in investing in innovative business concepts, and smart cities represent an avenue to tap into these opportunities. OMERS’ investment in Sidewalk Labs, which focuses on innovation in urban systems and space, demonstrates their commitment to Canada’s smart city agenda.
Brookfield Asset Management: Brookfield’s asset management services cut across several industries, and they have identified real estate as a promising area to invest in smart cities. The firm has a significant presence throughout North and South America, Europe, and Australia, with $550 billion in AuM. Their investment in technology-driven companies that optimize energy efficiency and reduce carbon footprint gives them a competitive edge in Canada’s smart cities.
BDC Capital: BDC Capital operates as the investment arm of the Business Development Bank of Canada, focusing on investing in late-stage startups that have the potential to grow into globally competitive enterprises. In the context of smart cities, the firm invests in companies developing solutions that can reduce traffic congestion, improve public transportation, and enhance the quality of life of urban-center residents.
Blue Bear Capital: Blue Bear is backed by private equity investors, entrepreneurs and technical operators who have spent their careers in the energy and technology industries. The company’s key energy industry investment themes include: Digitization of traditional supply chain work, The industrialization of renewables, Data-driven grids. Their key technology investment themes include: Wide Learning as the next Deep Learning, Integration as the next Interface, The Digital Operating System for Energy.
TIPS AND HINTS
To break down the smart city technology market volume in Canada, it is important to consider its various sectors. According to market research, the main sectors of smart city technology currently include infrastructure, governance, mobility, energy, healthcare, and public safety. In 2020, Canada’s smart city market was valued at $15.8 billion and is projected to reach $63.3 billion by 2025. The growth opportunities in the smart city sector are vast, meaning foreign start-ups have a chance to maximize their business growth.
While Canada’s smart city market is lucrative, it is essential to have a well-informed entry strategy as a foreign start-up. Firstly, it is recommended that you conduct market research to identify the gaps in the Canadian smart city sector. Then, create a detailed business plan based on your innovations’ uniqueness to cater to the market gap. Partnering with established Canadian companies in your target sector is also an entry strategy that can help you break into the market and gain credibility.
CONCLUSION
Best practices in the implementation of smart city technologies include collaboration between industry and government, engagement with citizens, and the adoption of open data standards. Additionally, a strong focus on sustainability and inclusivity is essential to ensure that the benefits of smart city technologies are shared equitably among all citizens.
The demand for smart cities in Canada is rapidly increasing, with a surge of urbanization. In the next decade, experts predict that Canadian cities will witness a significant shift towards intelligent transportation systems, low-carbon energy, and digitalization of public services. The city of Montreal, for instance, is already deploying electric buses, bike-sharing schemes, and smart waste management systems.
Canada is moving towards a sustainable, innovative future with its development in smart cities. By leveraging technology, gaining investments, and promoting research and development, Canadian cities are on the right path towards becoming intelligent communities. With the ever-increasing demand for sustainable urban living, Canada is set to become a global leader in the smart cities domain.