Canada’s GDP was $1.8 trillion in 2019, making it the tenth-largest economy in the world. The most profitable industries are minerals, the processing of natural resources, and transportation. Over 75% of Canadians work in the services sector, with the other 25% working in construction, manufacturing and agriculture. The mining and manufacturing sectors are robust due to Canada’s wealth of natural resources and make up a large part of exports. The Covid pandemic has brought the world to a standstill, with many businesses struggling for survival. Travel has been curtailed, with many Canadians unable to travel or eat at restaurants. The impact of COVID goes well beyond infection rates and the tragic loss of life. The financial uncertainty in Canada and worldwide is creating a knock-on effect that stretches well into the next year and beyond.
Which industries and sectors are set to boom?
Canadians are spending far longer and spending more online. Office meetings are being conducted online via video conferencing tools such as Zoom. The video gaming sector is thriving as more people pass the time at home playing video games. Businesses that can capitalize on such trends are boosting their bottom lines. Other industries are struggling to stay afloat. Online companies are currently experiencing a boom, especially those focusing on home entertainment, dealing with essential products like groceries, and online gambling. The trend will persevere into 2021. Moreover, businesses that are struggling at present will likely see a boom once the pandemic is over.
Online Casinos & Video Games
The gambling sector in North America accounts for nearly 30% of the global market, setting a new trend with gaming content through socialization and mobilization. Players are increasingly using social networks and mobile devices that are boosting interaction and communication with social games. Payment services providers like PayPal, Google and Apple Pay are encouraging cashless transactions, and regulatory acts that countries are adopting are creating more favourable conditions for the online gambling market. Video games have become increasingly popular as people look to them to kill boredom. Such games are attracting advertisers and generating tremendous revenue for game developers.
No Quick Fix
Many countries see their economies becoming decimated, with no quick fix in sight; however, the iGaming industry is continuing to do well. There has been a shift towards eSports for sports betting sites and online casinos providing a unique opportunity for further growth. The popular streaming platform Twitch has seen tremendous growth with over billions of hours of content consumed in 2020. The best online casinos are flourishing during this time, as more people are compelled to spend their time at home. More players are searching online for viable alternatives such as online slots, as land casinos and sports betting shops remain closed or implement strict social distancing.
The Biggest Winners in 2021
Online casinos have been the biggest winners during the global pandemic as people are kept away from the workplace and look to kill boredom and relieve stress at home. Players can try online poker, slot machines, and eSports, with operators quickly moving to respond promptly to the shift in demand by offering new and exciting alternatives. The increase in business for online casinos has consequently led to more staff joining the industry, and the trend is likely to stretch into 2021. In effect, all companies who managed to transfer their operations online will benefit next year.
Other Industries set to Boom
Internet publishing and broadcasting is another growing sector with web publishing on the rise. The same can be said for broadcasting, as TV programs and films find a new home online. Video conferencing services are exploding, with Zoom reporting a sharp increase in revenue of 355%, amounting to over $660 million from May to July. The stock price has increased sevenfold, adding over $21 billion to the company valuation. Zoom’s stock value has increased by more than 100%, while Microsoft Teams and Google Hangouts have become household names. Online retail in Canada is surging, while Amazon’s revenue reached almost $90 billion from April to June, accounting for nearly 15% of all retail sales up to July. Restaurants are increasingly turning to home deliveries to sustain sales, while grocery deliveries shot up as vulnerable people were in lockdown. Surprisingly, legal services are in high demand as divorce rates have doubled since couples are stuck inside together for months. Family lawyers are being inundated with divorce requests as the number of couples separating will likely increase.
Photo: Bench Accounting, Unsplash
