Adoption of cloud and cyber security services will drive the Australian B2B ICT landscape to hit $24.7 billion in FY26.
This is according to analyst firm Venture Insights which released its annual B2B ICT market forecast predicting a strong growth in Australia - FY21 to FY26 compound annual growth rate (CAGR) of 10.6 per cent -- over the next few years driven by the adoption of cloud and cyber security services.
Excluding telecommunications, the total ICT services market in Australia spanning business and enterprise is expected to reach $24.7 billion in FY26, the firm said.
The unified communications (UC) market will grow moderately driven by the increasing adoption of cloud-based services and IP voice, partially offset by the decline in premises-based UC and legacy fixed voice.
“Competition in the UC&CC market is intensifying amidst the COVID-19 pandemic. The increase in remote working has been driving significant demand for cloud-based collaboration. As businesses and enterprises migrate to cloud-based solutions a transfer of market value from telcos to hyperscalers is occurring,” Venture Insights head of research, Claudio Castelli said.
While the growth in cloud spending was impacted by the economic effects of COVID-19, especially in the SMB segment, Castelli said the adoption of cloud is expected to grow strongly at 14.3 per cent CAGR over the FY21-26 period.
SaaS accounts for most of the cloud market, but it will grow more slowly than infrastructure as-a-service (IaaS) and platform as-a-service (PaaS), Castelli highlighted.
“PaaS will grow particularly strongly in the mid-market as that segment is increasingly leveraging the reconfigured services available through the technology to build more complex applications without having to manage the underlying infrastructure,” he said.
The cybersecurity market is expected to grow at 9.1 per cent CAGR over the forecast period (FY21-26) driven by enterprises’ digital transformation, growing adoption of cloud, and more remote working, to reach $6.7 billion in FY26.
“Security is top of mind especially given the dispersed workforce as a result of COVID-19. According to our survey, over 30 per cent of organisations in Australia expect increased remote work to drive spending in security products and services,” added Castelli.