Australia Ict Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report 2026-2030

Australia's ICT market covers IT hardware, software, and services purchased by enterprises, governments, and consumers, and is typically counted as part of the broader Asia Pacific digital economy. Overall IT spending is forecast to reach around A$172 billion in 2025, an increase of 8.7% on the prior year, placing Australia among the faster-growing developed ICT markets in the region. The country benefits from high broadband penetration, widespread cloud usage, and an active regulatory environment around data and cyber security.

• •Total IT spending in Australia is projected at roughly A$172 billion in 2025, up 8.7% year on year.
• •Enterprise ICT is forecast to grow at about 12.9% CAGR between 2024 and 2029.
• •Cloud, cyber security, and AI-related platforms make up a rising share of overall spend.

Enterprise digitisation remains the primary growth engine, with organisations shifting workloads from on-premise systems to public and hybrid cloud platforms. Heightened cyber security threats, combined with new data-protection obligations, are pushing sustained investment in security software, managed detection services, and identity infrastructure. Generative AI tools, data analytics, and automation are also creating a new wave of software and services spending across financial services, retail, healthcare, and the public sector.

• •Cloud migration and modernisation of legacy core systems continue to lift services and software spend.
• •Cyber security is now a board-level priority, driving double-digit growth in security software and services.
• •Government digital identity, health, and defence programmes are large multi-year ICT commitments.

The market is commonly segmented into IT hardware, IT software, and IT services, with services typically the largest and fastest-growing category as more organisations move to managed and as-a-service models. Geographically, spending is concentrated in Sydney and Melbourne, which together account for the majority of enterprise ICT expenditure, while Canberra is a major buyer due to federal government demand. Brisbane, Perth, and Adelaide are growing hubs, supported by resources, defence, and smart-city projects.

• •IT services is the largest segment, followed by software, with hardware growing more slowly.
• •Sydney, Melbourne, and Canberra together represent the bulk of enterprise and government ICT spend.
• •Brisbane, Perth, and Adelaide are emerging growth corridors linked to resources, defence, and infrastructure.

What are the recent trends and outlook?

Generative AI is emerging as the defining technology trend, with Australian enterprises piloting copilots, customer service automation, and AI-assisted software development. Sovereign data initiatives, including local data-centre expansion and new cyber security regulations, are reshaping where and how workloads are deployed. Looking ahead, the market is expected to continue compounding at high single-digit to low double-digit rates through the rest of the decade, driven by cloud, AI, and ongoing digital government investment.

• •Generative AI and machine learning workloads are creating new spending on GPUs, data platforms, and AI services.
• •Data sovereignty rules are accelerating investment in Australian-based cloud regions and data centres.
• •The market is forecast to remain one of the fastest-growing ICT markets in the developed Asia Pacific region through 2029.