Australia B2B IT Forecast and Outlook 2024

Cloud services and cybersecurity drive growth as Australian businesses transition to off-premises and AI-integrated solutions.

David Kennedy · Venture Insights29 August 2024Period: FY2412 min read

9.7%↑

Total IT services market CAGR (FY23-FY28)

$21.1B↑

Forecast Cloud services revenue in FY28

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Abstract

The total IT services market in Australia is projected to grow at a 9.7% CAGR from FY23 to FY28, reaching $30.8 billion, driven by cloud services and cybersecurity. The UC&CC market will grow at a 4.0% CAGR, reaching $1.90 billion by 2027, with a shift towards cloud solutions. Cloud computing, the largest IT segment, will grow at an 11.0% CAGR to $21.1 billion, with SaaS leading. Key challenges include security, data privacy, and skilled staff shortages. The cybersecurity market will grow at an 8.1% CAGR to $7.8 billion, driven by Artificial Intelligence implementation and rising digitalisation of operations.

Key Takeaways

The total Australian B2B IT services market is forecast to reach $30.8 billion by FY28, growing at a 9.7% CAGR.
Cloud computing remains the largest segment, projected to reach $21.1 billion by FY28 with SaaS maintaining the highest market share.
Cybersecurity spending is resilient, forecast to grow at 8.1% CAGR to $7.8 billion, driven by AI adoption and rising cybercrime reports (up 23% in 2023).

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Frequently Asked Questions

The market is projected to expand at a 9.7% CAGR, reaching a total value of $30.8 billion by FY28. This growth is fundamentally driven by the continued migration to cloud services and intensified investment in cybersecurity.

Cloud computing is the dominant segment, forecast to reach $21.1 billion by FY28. While SaaS holds the largest market share, PaaS is the fastest-growing sub-segment with a 23.3% CAGR through the forecast period.

Yes, legacy premise-based UC systems are contracting at 11.2% annually. Conversely, cloud-hosted UC solutions are growing at 9.3% CAGR, shifting the total UC&CC market toward a $1.90 billion valuation by 2027.

Spending remains highly resilient with 75% of businesses expecting to increase cloud spending in 2024. Cybersecurity specifically is forecast to grow at 8.1% CAGR to reach $7.8 billion, spurred by a 23% rise in reported cybercrime.

Health Care and Social Assistance is the primary growth vertical, with IT spend projected to increase at an 11.6% CAGR. This sector will represent a $3.3 billion revenue opportunity by FY28.

Abstract

Key Takeaways

Frequently Asked Questions

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