Cloud Hosting and Data Processing Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: October 2024
ANZSIC J5921Revenue
$3.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
5,895
Businesses
2,077
Wages
$XXX.Xm
Cloud Hosting and Data Processing Services in Australia industry analysis
Recent years have presented several opportunities for cloud hosting and data processing services firms, including greater outsourcing of IT processes and a global digital boom. The transition to remote working under pandemic restrictions drove up demand for hosting services. As internet traffic continues to surge, businesses and consumers are generating vast amounts of data for analysis, fuelling the need for industry services. However, a recent semiconductor shortage hampered the industry's growth potential by raising the cost of new hardware. Revenue for cloud hosting and data processing services is expected to rise by an annualised 1.9% over the five years through 2023-24, reaching $2.4 billion.
Trends and Insights
- Outsourcing cloud hosting and data processing is common practice among many business and government clients. Government scrutiny of outsourcing practices could potentially dampen income streams for providers in the future.
- Business process management and data processing is largely project-oriented, with clients needing related services for specific objectives. Interest rates rises and subdued business confidence have discouraged clients from undertaking large projects.
- Economic activity along Australian’s eastern seaboard attracts many hosting and processing companies. Financial hubs like Sydney and Melbourne contain a lot of clients and companies can hire locally.
- Clients seeking cost-competitive solutions can benefit from turning to overseas providers due to advantages in exchange rates and lower overhead costs. Domestic firms, meanwhile, are focusing on exceptional customer service and tailored offerings to remain competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 9.3 % over the past five years, to reach an estimated $3.3bn in 2024.
Trends and Insights
The COVID-19 outbreak has had mixed effects on industry demand
- Government work-from-home mandates and restrictions on nonessential businesses pushed more businesses throughout the economy into the digital world, amplifying demand for the industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand from corporate and government clients is slanted to support hosting and processing growth
- Corporate and government entities will likely continue outsourcing their data processing and web hosting requirements over the coming years, thereby lifting revenue for cloud hosting and data processing services providers.
Biggest companies in the Cloud Hosting and Data Processing Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Amazon Web Services Australia | 2,731.9 | |
IBM A/NZ Holdings | 367.4 | |
Macquarie Telecom | 182.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Business process management and data processing, Application service provisioning and Hosting. Business process management and data processing is the largest segment of the Cloud Hosting and Data Processing Services in Australia.
Trends and Insights
Hosting is exposed to competition from foreign internet hosts
- Hosting is a service that enables organisations and individuals to make their websites accessible on the internet. Web hosting companies from overseas are a large source of competition for domestic hosting firms.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Cloud Storage Services in Australia
- Computer System Design Services in Australia
- Internet Service Providers in Australia
- Internet Publishing and Broadcasting in Australia
International industries
- Data Processing & Hosting Services in the US
- Web Domain Name Sales in the US
- Social Networking Sites in the US
- Virtual Data Rooms in the US
- Colocation Facilities in the US
Table of Contents
About this industry
Industry definition
Industry companies primarily provide electronic data processing or cloud hosting services. Specialised hosting activities include web hosting, streaming services or application hosting, application service provisioning, and providing general time-sharing mainframe facilities to customers. The industry excludes processing payroll services and financial transactions, such as credit card transactions.
What's included in this industry?
Business process managementData processingApplication service provisioning HostingDocument transformationElectronic data entryOptical scanning servicesComputer time-sharingCompanies
Amazon Web Services AustraliaIBM A/NZ HoldingsMacquarie TelecomPurchase this report to view all 4 major companies in this industry.
Related Terms
OFFSHORINGPUBLIC CLOUDDATA PROCESSINGHOSTINGBIG DATAIndustry Code
ANZSIC 5921 - Cloud Hosting and Data Processing Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Outsourcing cloud hosting and data processing is common practice among many business and government clients. Government scrutiny of outsourcing practices could potentially da...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Business process management and data processing is largely project-oriented, with clients needing related services for specific objectives. Interest rates rises and subdued b...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Economic activity along Australian’s eastern seaboard attracts many hosting and processing companies. Financial hubs like Sydney and Melbourne contain a lot of clients and co...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Clients seeking cost-competitive solutions can benefit from turning to overseas providers due to advantages in exchange rates and lower overhead costs. Domestic firms, meanwh...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Large businesses cutting up their operations and parcelling out subsidiaries has limited concentration in the wider industry. These decisions have been undertaken to improve ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Amazon Web Services Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of IBM A/NZ Holdings's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Macquarie Telecom's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Amazon Web Services Australia, and factors influencing its performance in the industry
- Description and key data for IBM A/NZ Holdings, and factors influencing its performance in the industry
- Description and key data for Macquarie Telecom, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Many hosting and processing firms engage in research and development. This makes research and development tax incentives particularly relevant to the industry.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Increased focus on fortifying cloud infrastructure and enhancing security against growing cyber threats is driving companies to invest more in infrastructure upgrades, raising...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cloud Hosting and Data Processing Services industry in Australia in 2024?
The market size of the Cloud Hosting and Data Processing Services industry in Australia is $3.3bn in 2024.
How many businesses are there in the Cloud Hosting and Data Processing Services in Australia industry in 2024?
There are 2,077 businesses in the Cloud Hosting and Data Processing Services industry in Australia, which has grown at a CAGR of 3.6 % between 2019 and 2024.
Has the Cloud Hosting and Data Processing Services industry in Australia grown or declined over the past 5 years?
The market size of the Cloud Hosting and Data Processing Services industry in Australia has been growing at a CAGR of 9.3 % between 2019 and 2024.
What is the forecast growth of the Cloud Hosting and Data Processing Services industry in Australia over the next 5 years?
Over the next five years, the Cloud Hosting and Data Processing Services industry in Australia is expected to grow.
What are the biggest companies in the Cloud Hosting and Data Processing Services market in Australia?
The biggest companies operating in the Cloud Hosting and Data Processing Services market in Australia are Amazon Web Services Australia, IBM A/NZ Holdings and Macquarie Telecom
What does the Cloud Hosting and Data Processing Services in Australia include?
Business process management and Data processing are part of the Cloud Hosting and Data Processing Services industry.
Which companies have the highest market share in the Cloud Hosting and Data Processing Services in Australia?
The company holding the most market share in Australia is Amazon Web Services Australia.
How competitive is the Cloud Hosting and Data Processing Services industry in Australia?
The level of competition is moderate and increasing in the Cloud Hosting and Data Processing Services industry in Australia.
