Why this is important to Wisconsin businesses: More than half of the cybersecurity infrastructure imported by Australia comes from U.S. providers.
Australia’s cybersecurity industry is rapidly growing. Industry and government agencies are focusing on the development and testing of cybersecurity software and platforms, as well as efforts to train more employees in that field. The Australian cybersecurity market was valued at $4.3 billion USD ($5.9 billion AUD) in 2020 and is projected to grow 9% annually to $5.8 billion USD ($8 billion AUD) by 2024. Cybersecurity is considered to be one of the six vital sectors for long-term growth of Australia’s economy.
In 2020, the COVID-19 pandemic disrupted every part of life, and the world became more reliant on digital technology than ever before. This collective shift toward digital solutions saw an exponential increase in online engagement for almost every user in Australia, as it did in the rest of the world. As the paradigm dictates: With growing opportunities, there is an equal and subsequent growth in threats and malicious activities.
According to the Australian Cyber Security Centre, there has been a 13% year-over-year increase in cyberattacks, with 50% of these classified as “substantial.” Last year, the Australian economy experienced losses of $24 billion USD ($33 billion AUD) and a 310% increase in complaint calls from consumers across Australia.
Cybersecurity solutions serve as the foundation for a sustainable, digitized economy, and the Australian government is continuously working on new cybersecurity regulations for each industry with the aim of improving awareness of internal cyberhygiene.
The Australian cybersecurity industry is relatively young, with 53% of businesses in that field established in 2015 or later. It is characterized by a high level of collaboration and partnerships among businesses and both local and international organizations to provide comprehensive solutions to the local industry.
About 60% of cybersecurity solutions imported into Australia are from the U.S., presenting opportunities for Wisconsin exporters to win business in the region through local channel partners. Also of note: Cybersecurity solutions are not subject to import tariffs in Australia under the U.S-Australia Free Trade Agreement. They are, however, subject to local goods and services tax.
There are several potential areas for investment opportunities:
- According to AustCyber’s Competitiveness Plan 2020, there is high level of interest in infrastructure development as well as development and testing of “deep tech” technologies, such as artificial intelligence, robotics, advanced manufacturing and quantum computing. The most sought-after cybersecurity solutions in the current environment are system security and software and platform security solutions.
- Health care, education and manufacturing will be the sectors with highest consumption potential in the near future.
- Defense is one of the largest spenders on cybersecurity solutions. Financial services and retail are two industries with the highest number of active online users, and they are looking to invest heavily in cybersecurity solutions.
Wisconsin exporters interested in pursuing opportunities are encouraged to read www.cybersecurityconnect.com.au and www.australiancybersecuritymagazine.com.au and reach out to WEDC for an initial discussion on how its team can assist.