The enterprise ICT market in Australia is anticipated to grow at a compound annual growth rate (CAGR) of 12%. This growth is driven by the ongoing digital transformation and technology modernization initiatives among the businesses and the government’s efforts to accelerate digitalization in the country, according to GlobalData, a leading data and analytics company.

GlobalData’s Australia Enterprise ICT Country Intelligence Report indicates that the ICT market size in Australia will increase from $86.1 billion in 2023 to $151.5 billion in 2028, in line with the positive ICT investment sentiment seen among the enterprises.

This is put to perspective by the findings from the GlobalData’s 2024 ICT customer insight survey, which reveals that 91.2% of respondents, who are the key ICT decision makers in their respective enterprises, have confirmed that there has been an increase in their enterprise ICT budgets in 2024 as compared to previous year.

Of the three IT infrastructure segments—hardware, software, and services—the services segment is expected to see the highest cumulative revenue growth over the forecast period. This growth will be largely driven by the widespread enterprise adoption of cloud computing services, which is projected to grow at a CAGR of 19% in value, over the forecast period.

Samrat Volam, Technology Analyst at GlobalData, comments: “The growth of the cloud computing services in Australia is fuelled by the continued adoption of hybrid working models and the accelerated migration of workloads to the cloud, especially by micro, small & medium enterprises (MSME) and startups. Government initiatives such as the ‘Secure Cloud Strategy’ and the cloud-first policy will further bolster this expansion.”

GlobalData forecasts that the combined banking, financial markets, and insurance (BFSI) sector will be the largest end-use vertical for Australia’s ICT market, contributing 11.1% of the total cumulative revenue from 2023 to 2028.

Samrat concludes: “Swift adoption of technology and the growth in the fintech business are proving to be decisive for the ongoing transformation in Australia’s BFSI sector. The accelerated pace of digital transformation initiatives is driving increased adoption of technologies targeting at specific use cases, including advanced IT security for data protection, AI for improving customer experience, fraud detection and process automation, and cloud computing for scalable infrastructure to support digital banking/payment platforms and services.

“Although both large enterprises and MSMEs are keen to invest in ICT, the fastest revenue growth will come from MSME segment that is set to witness a 13% CAGR over the forecast period. This growth will be driven by government support for SMEs, including grants, tax incentives, and digitalization initiatives aimed at enhancing their productivity and competitiveness.”