H2O Vision shifts AI drowning detection focus to US

H2O Vision is focusing its AI drowning detection business on the United States, where stronger demand is drawing resources away from Canada, according to its chief executive.

The Ottawa-based company developed the system in Canada and says it is ready for domestic use. But it has chosen to direct its first pilot deployment and near-term commercial efforts to the US. It presents that decision as part of a broader problem for Canadian technology firms that build products at home but struggle to win customers quickly enough in their domestic market.

The system uses computer vision to identify signs of drowning in swimming pools and other aquatic settings. The software analyses live video feeds for movement patterns, posture and behaviour linked to distress in the water.

Drowning is often harder to spot than many people assume. It can happen quietly, with subtle indicators that may be missed by lifeguards overseeing wide areas or juggling several tasks at once.

H2O Vision says the technology was developed with support from NRC-IRAP and has received Research Ethics Board approval. It argues those milestones show the system has moved beyond the concept stage and is ready for deployment in Canada, even though its first commercial traction is coming elsewhere.

Canada offers a clear domestic use case. The company pointed to figures showing 265 drowning deaths a year nationwide, while Ontario recorded 211 deaths in 2020, which it described as a 15-year high. It also cited rising drowning trends in British Columbia, Manitoba and Saskatchewan.

Market pressure

The gap between technical readiness and sales momentum is central to the company's argument. Government support programmes can help firms build new products, but a slower path to domestic adoption can leave startups short of time and money.

That pressure is especially acute for smaller founders with limited runway. Unlike larger companies, early-stage firms often have little room to wait through public sector procurement cycles, lengthy trials or cautious local buying decisions when overseas customers are ready to move faster.

"We are clear evidence of the tech brain drain in Canada," said Justin Dyer, Chief Executive of H2O Vision. "We developed this technology here in Canada and are ready for Canadian deployment, but our first pilot and continued runway is in the USA. Tech founders and startups take significant risks and make huge financial and personal investments to ensure success. Waiting for the Canadian ecosystem to catch up is simply not an option when we have immediate opportunities elsewhere."

The remarks reflect a familiar challenge in Canada's innovation economy. Public funding and research support can help produce new technology, but companies still need paying customers soon enough to sustain operations and justify continued investment.

H2O Vision argues this commercial gap is what pushes founders south. In its view, the issue is not whether Canada can produce viable technology, but whether domestic buyers adopt it quickly enough for a startup to survive.

Adoption gap

The company contrasted Canada's pace with Australia, where AI drowning detection systems have been installed across more than 120 pools in less than two years, it said. It also pointed to support from Royal Life Saving Australia for the use of computer vision in aquatic safety.

Examples like that show how quickly an emerging market can move once operators accept a new tool. Faster uptake gives suppliers reference sites, revenue and data from live environments, all of which can strengthen their position in other countries.

For H2O Vision, the US appears to offer that path. Dyer said the decision reflects not national preference, but the need to follow the market that is ready to buy first.

"The technology is ready for Canadian deployment tomorrow," Dyer said. "We have the validated system, we understand the regulatory environment, and there's genuine need. But as founders who have invested everything into this company, we can't wait indefinitely for domestic adoption when other markets are actively seeking these solutions."

The company also cited market data suggesting the global drowning detection system market was worth USD $486.5 million in 2024, with annual growth of 12.3% projected over the next decade. That points to a sizeable commercial opportunity for businesses able to establish themselves early.

Its system is intended for venues including public pools, waterparks, private leisure facilities and educational institutions. Those settings offer different sales routes, from municipal contracts to private operators, but all depend on buyers being willing to add another layer of monitoring to existing safety procedures.

Founder risk

Dyer said the business is not giving up on Canada, but is sequencing its efforts around the markets most likely to support it in the short term. That reflects a broader calculation many startup founders make when balancing domestic ambition against immediate financial reality.

"We're not abandoning Canada," Dyer said. "We're pursuing survival and success. If Canadian-developed technology finds faster market validation in the US, that's where limited resources must focus first. Once we achieve stability and growth, expanding back into Canadian markets becomes viable again."