The Australian IT Industry in 2025: Growth, Stability, and Opportunity
April 8, 2025
Australia’s IT industry is on track for a huge year in 2025, with strong signs of both market growth and long-term stability. From booming investment in new technologies to increased demand for skilled professionals, it’s an exciting time to be part of the tech world down under.
Massive Growth in IT Spending in Australia
According to Gartner, Australia’s total IT spending is expected to reach $146.85 billion in 2025, an 8.7% increase year-on-year. This growth is being fuelled by:
- Major investment in cybersecurity
- Rapid adoption of cloud computing and virtualisation
- The rise of generative AI (GenAI) across business processes
Software Leads the Way
The software sector is tipped to be the fastest-growing category, with a projected 13.4% jump, reaching nearly $45.85 billion. This reflects a broader trend of businesses embracing digital tools and automation to stay competitive.
A Steady Climb for IT Industry Services
The IT services market is also seeing strong gains, with a 5.82% compound annual growth rate (CAGR) forecast from 2025–2029. By 2029, the sector could be worth over $48 billion — a clear sign of sustained demand for managed services, consulting, and tech support.
Strong Employment Outlook in Australian IT Industry
The job market is just as promising. In ManpowerGroup’s Employment Outlook Survey for Q1 2025, the IT sector posted a net employment outlook of +27%, outpacing other key industries including:
- Healthcare
- Banking & financial services
- Education
In-demand skill areas include:
- Artificial Intelligence (AI) & machine learning
- Cybersecurity & data protection
- Cloud architecture & DevOps
- Digital transformation leadership
Skills Gap Still a Challenge
While the outlook is bright, there are still hurdles to overcome — particularly the shortage of skilled workers. To keep pace with demand, Australia’s IT workforce needs to continue evolving.
Key focus areas for the industry:
- Upskilling existing staff in emerging technologies
- Attracting new talent through flexible career pathways
- Strengthening partnerships between education providers and industry leaders
Final Thoughts
The Australian IT sector in 2025 is defined by rapid growth, high demand for talent, and a steady economic outlook. For professionals looking to future-proof their careers — or break into the industry — now is the perfect time to invest in the right skills and qualifications.
At IT Masters, we offer free short courses to help you explore new areas of IT without the pressure or commitment. They’re a great way to test the waters and build confidence before diving into formal study.
Already working towards an industry certification? Our ITM Store has a wide range of certs to help boost your career — and many of these can be used to gain academic credit towards a postgrad degree.
For those ready to take the next step, our postgraduate courses with Charles Sturt University are built to meet the real needs of today’s IT professionals. We’ve got May and July intakes coming up, so it’s the perfect time to get started.
And if you’re looking for value, don’t miss the four Graduate Certificates available with Commonwealth Supported Places (CSP) — meaning you can study at a significantly reduced cost. These include:
- Graduate Certificate in Cyber Security
- Graduate Certificate in Cloud Computing and Virtualisation
- Graduate Certificate in Networking and System Administration
- Graduate Certificate in Computing (Career Transition)
Spaces are limited, so we recommend applying early to secure your CSP spot.
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