Australia Software Development Market - Forecast(2024 - 2030)

The Australia Software Development Market is estimated to grow at a CAGR of 7.16% during the forecast period 2024-2030 and reach EUR 28.48 billion by 2030, from around EUR 17.42 billion 2023. Software development is the process of developing computer programmes using one or more specialised programming languages that offer capability to meet certain professional or individualised goals. The construction of operational software is typically the outcome of a planned project that includes a number of processes and stages. 

The market's expansion is expected to be fuelled by increasing government and significant company investment. For instance, the Australian government announced to invest $9.9 billion to improve its offensive and defensive cyber capabilities in March 2023. 

The funds will be distributed over the following ten years, with the first $4.2 billion going toward Australia's international signals intelligence and security agency, the Australian Signals Directorate (ASD). Apart from this, the growing investment in the software sector is set to boost its market growth. For example, in order to address the rising demand for computer capacity, Equinix invested $225 million in a new Sydney site in February 2019. Cisco announced to invest $61 million in a new strategy to finance regional start-ups, build essential infrastructure, and assist in the digitization of government agencies.

The report: “Australia Software Development Market – Forecast (2024-2027)”, by IndustryARC covers an in-depth analysis of the following segments in the Australia Software Development market. 

By Language: Java, Python, C++, Scala, Javascript, .NET, SQL, Ruby,LISA,Perl,Android,iOS and others.

By Market Demand: In-House on Payroll, Hired from Secondment Providers,Hired Freelancers and Fully Outsourced.

By Deployment Type: On-Premise and Cloud.

By Business Size: Small and Medium Business, Enterprises and Government.

By End-use Industry: Banking and Financial Institution, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing, Energy & Utilities, Travel & Logistics, Fintech, eCommerce and others.

• The java segment is analysed to hold highest share in 2023 owing to the significant growth in the gaming industry coupled with increase in employment in the vertical. 

• The Consumer Goods and retail accounts for the dominant market share during the forecast period owing to the growing retail sector in Australia.

• The growing investment by various companies and government bodies on the various deployment model is set to boost its market growth during the forecast period.

In terms of language, the java segment is analysed to hold highest share in 2023 owing to the significant growth in the gaming industry coupled with increase in employment in the vertical. For instance, the Australian gaming market doubled in size over the last five years to reach $160.9 million in 2023, growing at a rate of 23 percent over 2020 levels, according to the Interactive Games and Entertainment Association's annual survey report. According to the report, employment in the Australian video game sector increased by 7% in 2023. 

In addition, the rising demand for senior Java engineers with at least three years of experience in the nation from businesses like 2XM Technology Pty Ltd, with an average salary of $150,000 to $180,000 annually, is expected to propel market expansion. However, the Javascript segment is also analyzed to grow at a high rate owing to the presence of major web development companies in the country. For instance, Tencomm employs javacript to build websites because it enables high dynamic, fully responsive, and sites with the most attractive user interfaces. 

In addition, the use of javascript by leading companies to create websites, web applications, and mobile apps is anticipated to boost market expansion. For instance, one of the main front end components used in the creation of websites, web applications, and mobile apps is javascript, which is used by Intergy. It enables programmers to specify client-side user interaction with apps and can be used to create server-side scripting code.

In terms of end-use industry, the Consumer Goods and retail accounts for the dominant market share during the forecast period owing to the growing retail sector in Australia. As a part of this, according to CNBC, sales in January 2024 were still up 4.8 percent from a year earlier and much higher for the entire December quarter, indicating that household spending significantly influenced economic growth. In addition, the market expansion of the retail sector would be fuelled by the presence of major players offering cloud services. DXC Technology provides cloud services to help with this, including tracking shifting consumer purchasing trends and ensuring the supply chain can handle more complicated final-mile delivery alternatives. However, the healthcare segment is also analysed to grow at a higher rate owing to the growing government investment to strengthen the healthcare sector. For example, the Health Delivery Modernization Program received an investment from the Australian government of AU$107.2 million ($80 million) in March 2024, which included new digital capabilities to administer Medicare Complex Care Plans and register Medicare providers.

• Increasing investment in the cloud sector

The growing investment by various companies and government bodies on the various deployment model is set to boost its market growth during the forecast period. As a part of this, Google made a five-year A$1 billion (US$736 million) investment in Australia in November 2023. The company's current greatest investment in Australia is the Digital Future Initiative. Google will make investments in the technology required to create a digital economy. Cloud computing development will be its main focus. Google stated in November 2023 that it would invest A$1 billion ($740 million, £550 million) in Australia over the following five years. According to Google, the funds will be used to establish a research hub, expand its cloud computing capabilities, and support collaborations with regional organisations. In order to accelerate its expansion in South East Asia, Avigna Consulting (Singapore), owner of the server management system InfraGuard, made a strategic investment in Kumolus, Australia's top cloud management company, in January 2020.

• Government support for the digitalization of the country

The growing government support for the digitalization of the country will eventually increase the demand of Australia software development market which in turn would boost its market growth. As a part of this, in order to help Australia focus on digitization over the next ten years, the federal government has committed to investing close to $1 billion in a Digital Economy Strategy. The government's 2023–2030 budget was unveiled on May 11th, and it includes the strategy. Millions of dollars have been committed by the Digital Economy Plan to enhancing cybercrime and safety in Australia. This includes $15.4 million for the Peri-Urban Mobile Program and $31.7 million for the 5G and 6G networks. Through its Peri-Urban Mobile Program, large cities' periphery bushfire-prone areas will have better mobile connectivity. By creating a National Data Security Action Plan and supporting the "Cyber Hubs" programme, which will assist Canberra-based IT companies in enhancing the cybersecurity of smaller government departments, the government will also protect the privacy and security of consumers' and businesses' data.

Australia Software Development Market Challenges 

The growing cybercrimes in the country may hamper its market during the forecast period. As a part of this, as more individuals were working from home during the pandemic, a recent report released in September 2023 said that there had been a 13 percent increase in cybercrime in the previous year, with around one incidence out of every four targeting essential infrastructure and services. Over the course of the year ending June 30, 2023, the Australian Cyber Security Centre (ACSC) received one report of a cybercrime every eight minutes. Additionally, Assistant Minister of Defense Andrew Hastie said that hackers have shifted their attention to people working remotely online and have actively targeted vulnerable people and health services to conduct espionage, steal money, and steal sensitive data. They have done this by playing on the fear that COVID-19 has created. Additionally, ransomware attacks rose by almost 15%, with the health industry reporting the second-highest number of attacks.

Product launches, acquisitions, market penetration and R&D activities are key strategies adopted by players in the Australia Software Development market. The top 10 Australia Software Development market companies are

• In 2023, to expand its global operations and product offerings, Australian software business simPRO invested more than $350 million to a capital round funded by investment house K1 Investment Management.

• In September 2020, in order to focus on accelerating the development and release of cutting-edge and sustainable cloud-based solutions across a variety of industries that will drive efficiency, amplify decision-making capability, and improve customer experiences, Microsoft Corp. and Telstra have expanded their long-standing strategic partnership.

• In July 2020, Ajna Consulting, a Sydney-based company that specialises in digital transformation services, and Cleo, the Rockford-based global leader in ecosystem integration solutions, have partnered to help businesses in Australia with supply chain-dependent industries optimise their business operations through the use of Cleo Integration Cloud, Cleo's flagship cloud integration platform.