Australia ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Description
Australia ICT Market Analysis
The Australia ICT market was valued at USD 68.74 billion in 2025 and estimated to grow from USD 74.99 billion in 2026 to reach USD 115.93 billion by 2031, at a CAGR of 9.10% during the forecast period (2026-2031). Investments in cloud infrastructure, cybersecurity platforms, and green data-center capacity keep spending momentum strong, while hybrid deployment models help enterprises align performance with compliance and cost targets. Rapid uptake of AI-enabled migration tools speeds legacy modernisation, and hyperscalers continue to localise facilities to meet latency and data-residency goals. Government cloud-first mandates underpin public-sector demand, and programs that co-fund small-company innovation expand the customer base for managed services. Talent shortages and rising power-and-water constraints for data centers temper near-term gains but are unlikely to derail the sector’s long-run expansion.
Australia ICT Market Trends and Insights
Surge in Cloud and Hybrid IT Adoption
Hybrid deployment is expanding at an 11.14% CAGR as organizations pair public-cloud scale with on-premises control. Microsoft’s Azure Extended Zones in Perth cut latency for resource-sector workloads and demonstrate provider commitment to regional coverage. Banking and insurance firms accelerate migration after updated risk-management guidance from the financial regulator. AI-guided refactoring reduces developer effort by 90%, freeing budgets for analytics projects. Multi-cloud orchestration tools mature, letting enterprises shift traffic in real time to optimize resilience and cost. Vendors now offer consumption-based pricing for private-cloud nodes, closing cost gaps with hyperscale services.
Government Digital-Transformation Funding
Canberra’s AUD 1.2 billion (USD 0.79 billion) Digital Government Strategy mandates cloud-first architectures, prompting agencies to migrate more than 180 websites to modern platforms. Automated migration saves each site roughly AUD 40,000 (USD 26362.20) in redevelopment spend. The Digital Marketplace opens procurement to qualified SMEs, sending annual public-sector ICT outlay toward USD 3.3 billion equivalents. Compliance with the Essential Eight framework drives demand for security orchestration and continuous monitoring tools. States mirror federal policy with their own cloud-adoption road maps, reinforcing uniform standards nationwide. Heightened transparency requirements compel vendors to disclose hosting locations and uptime metrics during tender evaluations.
ICT Talent Shortage and Wage Pressure
Job Skills Australia data show 70% of IT roles were in shortage during 2024, but targeted migration visas, scholarship programs, and short-course credentials begin to ease the crunch. Salary inflation moderates as global firms streamline regional headcounts, yet specialists in cyber defense and cloud architecture still command premium packages. Telstra transfers selected data-analytics staff into its Accenture joint venture to access broader talent pools. Professional-association frameworks guide continuous upskilling for mid-career technologists. Remote-first work models let regional centers bid for projects once confined to capital-city labor markets. Market entrants now embed apprenticeship clauses in public tenders to secure qualified resources.
Other drivers and restraints analyzed in the detailed report include:
- Heightened Cybersecurity Demand
- Hyperscaler Green AI-Ready Data-Center Build-Out
- Legacy-System Complexity
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
IT Services held 32.45% of 2025 spending as firms relied on external partners for cloud migration, cybersecurity, and process re-engineering. The Australia ICT market rewards providers with deep implementation skills and vendor certifications. Cloud Services forms the fastest-moving sub-segment at a 9.62% CAGR, supported by hyperscaler footprint growth and subscription-based delivery models. IT Hardware demand stays resilient due to edge infrastructure roll-outs that connect factories, warehouses, and renewable-energy assets. Software uptake accelerates on the back of SaaS collaboration tools and AI-driven coding assistants. Infrastructure projects now bundle secure network fabrics with automated backup appliances to satisfy Essential Eight requirements.
Managed-service providers pursue scale via acquisitions, creating national footprints that align with multi-region enterprise needs. Logicalis gains Microsoft Azure Partner-of-the-Year status after migrating Western Sydney University workloads and showcasing reference architectures. Business-consulting arms layer strategic advice on top of technical delivery, positioning themselves as outcome guarantors amid legacy-system debt. Public-sector contracts increasingly specify measurable service-level outcomes, cementing a pivot toward value-based procurement. The Australia ICT market thus favors ecosystem players that marry local compliance insight with global best practices.
The Australia ICT Market Report is Segmented by Product Type (IT Hardware, IT Software, and More), Enterprise Size (Small and Medium Enterprises, Large Enterprises), and End-User Industry Vertical (Government and Public Administration, BFSI, Energy and Utilities, and More). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
- Microsoft Australia Pty Ltd
- Amazon Web Services Australia Pty Ltd
- Telstra Group Limited
- Alphabet Inc. (Google Australia Pty Ltd)
- IBM Australia Limited
- Cisco Systems Australia Pty Ltd
- Apple Pty Limited
- Samsung Electronics Australia Pty Ltd
- NEC Australia Pty Ltd
- Fujitsu Australia Ltd
- TPG Telecom Limited
- Atlassian Corporation Plc
- Oracle Corporation Australia Pty Ltd
- DXC Technology Australia Pty Ltd
- Kyndryl Australia Pty Ltd
- Accenture Australia Holdings Pty Ltd
- Infosys Limited
- Wipro Limited
- Tech Mahindra Limited
- Tata Consultancy Services Limited
- Huawei Technologies (Australia) Pty Ltd
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
- 1 INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET LANDSCAPE
- 4.1 Market Overview
- 4.2 Impact of Macroeconomic Factors
- 4.3 Market Drivers
- 4.3.1 Surge in cloud and hybrid IT adoption
- 4.3.2 Government digital-transformation funding
- 4.3.3 Heightened cybersecurity demand
- 4.3.4 Hyperscaler green AI-ready data-centre build-out
- 4.3.5 Green ICT procurement mandates
- 4.3.6 Export-oriented tech-SME boom
- 4.4 Market Restraints
- 4.4.1 ICT talent shortage and wage pressure
- 4.4.2 Legacy-system complexity
- 4.4.3 Data-centre power and water limits
- 4.4.4 Rising local-data-residency costs
- 4.5 Value Chain Analysis
- 4.6 Regulatory Landscape
- 4.7 Technological Outlook
- 4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Buyers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry
- 4.9 Investment Analysis
- 4.10 Impact of Macroeconomic Factors
- 4.11 Industry Stakeholder Analysis
- 5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
- 5.1 By Product Type
- 5.1.1 IT Hardware
- 5.1.1.1 Computer Hardware
- 5.1.1.2 Networking Equipment
- 5.1.1.3 Peripherals
- 5.1.2 IT Software
- 5.1.3 IT Services
- 5.1.3.1 IT Consulting and Implementation
- 5.1.3.2 IT Outsourcing (ITO)
- 5.1.3.3 Business Process Outsourcing (BPO)
- 5.1.3.4 Managed Security Services
- 5.1.3.5 Cloud and Platform Services
- 5.1.4 IT Infrastructure
- 5.1.5 IT Security/Cybersecurity
- 5.1.6 Communication Services
- 5.2 By Enterprise Size
- 5.2.1 Small and Medium-sized Enterprises
- 5.2.2 Large Enterprises
- 5.3 By End-user Industry Vertical
- 5.3.1 Government and Public Administration
- 5.3.2 BFSI
- 5.3.3 IT and Telecom
- 5.3.4 Energy and Utilities
- 5.3.5 Retail, E-commerce, and Logistics
- 5.3.6 Manufacturing and Industry 4.0
- 5.3.7 Healthcare and Life Sciences
- 5.3.8 Oil and Gas
- 5.3.9 Other Verticals
- 6 COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Microsoft Australia Pty Ltd
- 6.4.2 Amazon Web Services Australia Pty Ltd
- 6.4.3 Telstra Group Limited
- 6.4.4 Alphabet Inc. (Google Australia Pty Ltd)
- 6.4.5 IBM Australia Limited
- 6.4.6 Cisco Systems Australia Pty Ltd
- 6.4.7 Apple Pty Limited
- 6.4.8 Samsung Electronics Australia Pty Ltd
- 6.4.9 NEC Australia Pty Ltd
- 6.4.10 Fujitsu Australia Ltd
- 6.4.11 TPG Telecom Limited
- 6.4.12 Atlassian Corporation Plc
- 6.4.13 Oracle Corporation Australia Pty Ltd
- 6.4.14 DXC Technology Australia Pty Ltd
- 6.4.15 Kyndryl Australia Pty Ltd
- 6.4.16 Accenture Australia Holdings Pty Ltd
- 6.4.17 Infosys Limited
- 6.4.18 Wipro Limited
- 6.4.19 Tech Mahindra Limited
- 6.4.20 Tata Consultancy Services Limited
- 6.4.21 Huawei Technologies (Australia) Pty Ltd
- 7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
- 7.1 White-space and Unmet-need Assessment
Pricing
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