Australia is not only known for its breathtaking landscapes and unique wildlife but also for its thriving economy and commitment to innovation. As we step into a new era, the country is experiencing significant growth in several key sectors that are poised to shape its future trajectory.
In this blog, we will delve into four major growth sectors in Australia: cybersecurity, tourism, renewable energy, and healthcare.
Healthcare sector
The healthcare sector continues to thrive as one of the most rapidly expanding industries globally, benefiting greatly from the impact of our ageing population. Projections indicate that by 2041, the number of individuals aged 65 and above in Australia will reach a significant figure of 6.66 million.
While there have been discussions surrounding the apparent stabilisation of the ageing population, it is essential to consider the broader context of overall population growth. Despite potential levelling off in percentage terms, the actual number of older individuals in need of healthcare continues to rise steadily. This trend underscores the persistent increase in demand for healthcare services among the elderly population.
Renewable energy
At present, the renewables industry in Australia employs 28,000 individuals. However, this number is expected to surge to 45,000 by 2025, establishing it as one of the fastest-growing industries in 2023.
With the imminent arrival of the global Net Zero 2030 goals, the world is swiftly embracing renewable energy sources as awareness of sustainability and environmental impact grows among consumers. Projections indicate that by 2024, renewables will account for nearly 33% of the world’s electricity production.
In a significant milestone, the National Electricity Market reported that renewables already contribute to 50% of Australia’s primary electricity grid as of 2022. Rooftop solar takes the lead with an impressive 24% share, followed by wind power at 16%, large-scale solar at 9%, and hydroelectricity at 2%.
Australia’s wind farm industry has experienced remarkable growth, expanding almost five-fold over the past ten years until 2021-22. It is poised for rapid expansion in the coming five years, with projected revenue growth of 52.6% in 2023/2024.
Tourism
Following three years of intermittent lockdowns, the travel industry is rebounding in 2023, experiencing a resurgence that surpasses previous levels of activity. A YouGov survey conducted for the World Travel & Tourism Council reveals that international travel is expected to surpass pre-pandemic figures this year, indicating a strong desire for people to explore and venture out once again.
The positive news extends to the domestic front as well. In 2020, international tourist arrivals witnessed a staggering decline of 73%. However, the year ending September 2022 saw a rebound with 2.2 million arrivals, marking a remarkable 1184% increase compared to the same period in 2021.
With the lifting of travel restrictions, the travel and tourism industry is experiencing a renaissance. According to IBISWorld, the top three fastest-growing industries in Australia all fall within the travel sector. Leading the pack is travel insurance, projected to witness revenue growth of 206.0% in the 2023-24 period. Following are foreign currency exchange, with a growth projection of 128.5%, and inbound tour operators, with an expected growth rate of 87.1%.
The overall revenue forecast for the travel and tourism market in 2023 is projected to reach AU $20.08 billion, reflecting the robust recovery in the industry.
Hotels are also regaining popularity despite the competition from Airbnb. Expedia reports that 60% of Australians are planning a hotel stay in 2023. Additionally, the desire for luxurious 5-star accommodations is on the rise, with the luxury segment expecting a remarkable 42.7% revenue growth for the 2023-24 period.
Cybersecurity
The cybersecurity industry in Australia has been experiencing significant demand for skilled professionals. The Australian Cyber Security Growth Network (AustCyber) estimated that by 2026, the cybersecurity sector in Australia will need an additional 18,000 skilled workers.
The field of cybersecurity plays a crucial role in safeguarding every industry. In an era where businesses own websites and conduct online operations, the services of ethical hackers, known as white hat hackers, are in high demand. Their expertise helps companies protect their customers and maintain the integrity of their brand.
When a business falls victim to a cyberattack and experiences data breaches, the stolen information quickly becomes public knowledge, posing a significant risk to the affected brands. In some cases, these incidents can lead to brand reputation damage and even business failure. As a result, the need for cybersecurity professionals is already substantial and is expected to grow further as more retailers and government departments rely on the internet for their operations.
Is 2023 a good time to expand your business into Australia?
Expanding a business into new markets requires careful consideration of various factors, including economic conditions, market trends, and growth prospects. Australia, with its stable economy, favourable business environment, and numerous growth opportunities, presents an ideal landscape for businesses looking to expand.
- Strong Economic Growth: Australia has a resilient economy that has shown consistent growth in recent years. According to the Reserve Bank of Australia, the country’s GDP is projected to grow by 4.5% in 2023, highlighting the robust economic outlook. This steady growth indicates a favourable business environment with increased consumer spending and business investments.
- Business-Friendly Environment: Australia is known for its favourable business environment and ease of doing business. In the World Bank’s Ease of Doing Business Index, Australia ranks 14th out of 190 economies. The country’s transparent legal framework, strong intellectual property protection, and efficient business registration processes create a supportive ecosystem for businesses to establish and expand their operations.
- Skilled Workforce: Australia boasts a highly skilled workforce, ensuring access to talent across various industries. The country has a strong education system and a high percentage of tertiary-educated individuals. As per the Organisation for Economic Co-operation and Development (OECD), around 46% of Australians aged 25 to 64 hold a tertiary qualification. This educated workforce offers businesses the opportunity to recruit top talent and drive innovation.
Are you ready to expand your business into Australia? Australia PEO enables you to hire skilled workers quickly and compliantly. Speak to us today about how we can help.
