Australia has an opportunity to add $800 million to annual cyber security revenue by 2026 through three key actions

If Australia acts on the identified growth barriers, the cyber security sector will move up the leaderboard, potentially earning $800 million more annually by 2026.

The Australian cyber security sector has an opportunity to increase its annual revenue by $800 million. If Australia improved its revenue growth rate to be on par with the forecast annual average growth rate of international leaders (9.9 per cent), Australia could increase its annual cyber security revenue by $800 million by 2026.

Australia’s annual revenue growth is forecast to be 5.5 per cent, while the average of leading cyber security jurisdictions is forecast to be 9.9 per cent. Of the top 10 cyber security jurisdictions (based on 2022 revenue), China is forecast to have the strongest annual growth by 2026, at 19.7 per cent. South Korea has the second highest at 13 per cent. Australia has the lowest forecast annual growth rate, at 5.5 per cent. 

To grow revenue, Australia must improve its startup environment, bolster domestic procurement and export capability and better attract local and international talent. This report finds that these three impediments are slowing Australia’s cyber security sector growth relative to peers. 

Exhibit 17: Australia's modelled revenue under various scenarios

Australia's revenue A$, millions

Australia has an opportunity to add $800 million to annual cyber security revenue by 2026 through three key actions

Key Actions

Increase incentives and funding for R&D, as well as support the innovation ecosystem, to address the challenge of limited startup support

Support domestic procurement of cyber security, alongside continuing efforts to grow exports, thereby providing a broad base of growth

Work together on attracting talent and upskilling workers to take the handbrakes off the Australian cyber security sector growth