Australia’s IT service market is expected to reach an export value of US$3.9 billion in 2019, according to a new report.
By 2025, the market is expected to grow by 66 per cent overall, to US$6.5 billion, rising at an average rate of 9 per cent per annum.
The report, commissioned by overseas money transfer firm Western Union, revealed Australia’s total service market will reach US$45 billion by 2025, claiming IT will be responsible for 7.4 per cent of this growth.
Australia’s IT export growth stands out against the overseas average, with WU predicting the total global IT service exports to grow by 35 per cent between in the next five years, almost half of that of Australia.
“As Australia faces a recession, the ICT industry will play a vital role in driving growth and jobs locally. Though not overlooked, the sector is often underestimated with COVID-19 driving a rapid uptake in digital tools and remote working practices,” the report said.
However, the report found that Australia’s entire services industry is only 1.1 per cent of the GDP, lagging behind the UK at 9.2 per cent and the US at 2.41 per cent.
“Nevertheless, Australia is well-positioned to grow exports in knowledge-intensive services industries as distance becomes less relevant to trade,” the report added.
In total, the value of international trade in services is expected to rise from US$6.1 trillion in 2019 to US$8 trillion 2025, growing by nearly a third in five years.
“It is predicted this growth will be accelerated by the adoption of new technology and digitisation of working practices forced by the onset of the COVID-19 pandemic – which, combined with a shift in attitudes to online interactions, is likely to fuel economic recovery and growth of cross-border trade in services in the coming five years,” the report said.