Besides its breathtaking landscapes and diverse wildlife, Australia has one of the fastest-growing economies globally. According to a publication by the Australian Department of Public Affairs and Trade, the country has experienced consecutive annual growth trends over the past two decades.
Several new industries have emerged. Existing ones are expanding by integrating current trends, especially artificial intelligence. Healthcare, gambling, tourism, and automobiles are among the fastest-growing sectors. This article highlights some of the fastest-growing industries in Australia for prospective investors in 2024.
Healthcare Industry
The Australian government is continually investing to improve the healthcare industry. In 2023, the government proposed a four-year budget plan estimated at $537 billion. Hence, it is unsurprising that the country’s healthcare sector is one of its largest employers of labor to date.
According to a report by the Australian Health Practitioner Regulatory Agency (AHPRA), there are over 877,000 registered practitioners as of August 2023. The number represents a significant increase of 18% compared to 2019. Each month, an estimated 3000 nurses and over 700 doctors are employed, and the reasons for this are apparent.
The increasing aging population continues to mount pressure on care providers and health professionals. The Australian Institute of Health and Welfare (AIHW) projects an increase in the population of aged people. The numbers are expected to grow from 15% to 23% before the end of 2057. Based on this demographic trend and the nation’s commitment, the healthcare industry is undoubtedly one of the fastest-growing sectors. This makes it a viable option for potential investors.
Gambling Industry
The gambling industry has had its fair share of criticisms and controversies. However, many countries continue to explore the positives, and Australia is one of them. Australians consider gambling as a regular pastime activity. The affinity towards gambling also comes from the country’s rich pub culture and love for sports. According to a report by Statista in 2023, Australians spent about 17 billion AUD on gambling.
In 2020, over 72.8% of Australian adults were involved in one form of gambling activity or another. Meanwhile, 48% of men and 28% of women gamble at least once every week. This shows the level of awareness in the country.
Electronic gaming machines are the most popular in the nation. They are often referred to as pokie machines or just pokies. These machines are available in all states. But, for easy access, many players prefer to do it online. With recent tech advances, it is easy to visit platforms like australiainternetpokies.com. Such sites provide easy access to the best online casinos where Australians can enjoy their favorite pokies. These platforms also offer lucrative bonus deals and fantastic customer support. This is a thriving area for investment in the country.
Overall, the online gambling market in Australia is expected to reach 10.30 billion AUD in 2023. It represents an annual growth rate of 6.27%, as estimated from 2023 to 2028. Beyond these numbers, the user penetration rate is projected to follow an upward trend of up to 13.4%. The number is expected to reach 7.6m users before the end of 2028. Some of Australia’s top gambling companies as of 2023 include PointsBet Holding and Tabcorp Holding.
Hospitality and Tourism
Australia remains a significant player in the tourism and hospitality sector. The country is home to many hotel resorts and tourist attractions. Arguably, the most popular one is the Sydney Opera House in New South Wales. Others include Great Ocean Road in Victoria, Bondi Beach in New South Wales, and Kangaroo Island in South Australia.
Besides tourist sites, there are many five-star hotels and casinos in the country. Examples include the Four Seasons Hotel in Sydney, Palazzo Versace in Gold Coast, and Park Hyatt, also in Sydney. In 2023, the hospitality and tourism sector in Australia generated revenue of 10.18 billion AUD, as reported by Innquest. It amounted to 1.6% of the nation’s GDP and is expected to increase.
Another vital arm of the hospitality and tourism sector is online booking platforms. Over 91% of the revenue is generated via platforms like Booking.com, hotels.com, and Trivago. Overall, the Compound Annual Growth Rate (CAGR) is expected to increase by 1.85% between 2023 and 2027. Indeed, it is a good time to invest.
Renewable Energy
Following best global practices, the Australian government is committed to investing in renewable energy. This is in line with the country’s target of reducing energy emissions to below 43% before 2030. The long-term goal is to reach zero emissions before the end of 2050. As such, the industry is a central point of focus for both local and foreign investors.
The market size, based on the current installed capacity, is expected to grow from 46.06 gigawatts in 2023 to 79.77 gigawatts in 2028. Solar photovoltaic cells are expected to dominate the market. Most homes and small businesses in Australia now resort to rooftop solar systems. In Queensland, for instance, one out of every three homes has solar power installed. This gives an idea of the level of awareness regarding renewable energy in the country.
Currently, some of the major players in the market include Vestas Wind Systems, Xinjiang Goldwind Science & Technology Company, and Iberdrola SA, among others.
E-Commerce
The e-commerce sector experienced a significant boom following the COVID-19 pandemic. Australians embraced online shopping, ranking as the 12th largest market globally. The estimated revenue for 2023 is about 71,948.72 million AUD. The projected annual growth rate is 7.4%. Hence, the Australian e-commerce market is expected to hit an estimated 95,821 million AUD by 2027.
A few markets have been highlighted as the critical areas of interest. Electronics takes the lead, accounting for 22.2% of the entire e-commerce revenue generated in the country. Fashion and groceries follow closely at 21.4% and 16.4% respectively. The other sectors include furniture, DIY, and care products.
Conclusion
Is Australia a good place to do business? Certainly, the answer is yes. There are numerous thriving sectors. However, expanding into a new location requires thorough planning and consideration. Generally, the Australian economy is stable. Government policies are favorable, and there are numerous growth opportunities for investors.
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