Overview: Key Market Opportunities in Australia

Overview: Key Market Opportunities in Australia
Photo: Catarina Sousa, Pixels.

Australia’s outstanding GDP growth record leaves other developed economies behind when comparing global business expansion prospects. The nation’s strong economy, growing middle class and educated workforce make it an attractive place to set up a company. Strong domestic demand and consumption is fueled by consumers with high spending power that seek high-quality, diversified products and services.

Free trade agreements cover nearly half of all Australian trade, meaning exporters have preferential market access and receive competitive tariff rates. Geographical proximity and established trading relationships with Asia continue to attract foreign investors when exploring new markets. Additionally, Australia’s own domestic logistics infrastructure is made up of sophisticated ports that service land and sea freight options, making trade feel seamless.

As the Australian government is not only open to foreign investment but actively facilitates it, firms should be aware of the market opportunities that exist. Find out where your company’s expertise could find success and gain market share in Australia.

Overview: Key Market Opportunities in Australia
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Evolving mining and energy sector

Mining is one of the biggest industries in Australia, as it is the fourth biggest mining country in the world. Its extensive natural resources are serviced by over 350 mines operating in Australia. The government facilitates foreign investment in Australia’s energy industry. Extensive reserves of iron, copper, gold, zinc and coal provide profitable returns for firms with the right strategies and business partners. Increasing demand for lithium, due to its use in electric cars and smartphones, also provides opportunities due to the country’s reserves.

High demand exists for innovative mining equipment, technology and services (METS). In particular, Queensland is a world leader in the METS sector. Employing 20,000 people across the sunshine state, revenues top AU$7 billion. There are opportunities for international firms with the right expertise to partner locally and collaborate on products and services. Acceleration programs are in place to help out startups in this industry and provide mentoring and connections to take advantage of promising commercial opportunities in Australia. Long-term opportunities exist in this sector as global firms look to gain valuable supply chain partners, particularly in Asia.

The movement towards renewable energies in Australia will provide opportunities for firms with expertise in this field. Australia’s land provides opportunities for wind, solar, hydropower and geothermal solutions. Gaps for new entrants include demand for imports of high-end machinery and technology solutions, as well as services. This includes consultants with experience in business development, including product innovations and developments. Technology is diversifying into new avenues such as automation processes that are efficient and cost-effective. Australia’s mining industry’s sustained investment in research and development industries back the industry’s move towards these new types of technology.

Agribusiness an economic pillar

As the world’s largest island with tight biosecurity regulations, Australia’s produce is known worldwide to be high-quality. The country’s agricultural products compete significantly well in the global market, with 60% of its agricultural produce being exported. According to the CEO of NSW Farmers, the Australian agriculture industry is currently worth US$43 billion,  expected to double in value by the year 2030. High demand from Asia and New Zealand means firms can capitalise on Australia’s strategic geographical location and optimise key export routes.

Opportunities exist for innovative technologies that create more sustainable processes, such as a lessened dependence on water usage. Drought has devastating effects on the agricultural industry in Australia. Farmers continued to invest in research and development (R&D) measures that can help sustain their harvests throughout tough weather conditions. There is also an increasing demand for supply chain software that tracks goods from their origin to the end consumer, particularly with organic foods. The ability to add value throughout each stage in the supply chain will help firms gain higher profits. Specific agribusiness industries with potential include grains, beef, dairy, horticulture and aquaculture.

Overview: Key Market Opportunities in Australia
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FinTech an emerging investment hub

Banking is one of the online activities Australians spend the most time on. Considering Australia’s excellent internet infrastructure, cybersecurity and intellectual property regulations, Australia’s Fintech industry presents exciting investment opportunities. Banking and finance are one of the biggest spenders on ICT. Such investment is necessary to innovate traditional banking channels. FinTech provides opportunities to optimise the technology we have at our fingertips. Innovative technologies will also close the physical distance between Australia and the world, making investing and doing transactions with business partners abroad easier.

Wealth management is a globally significant industry for Australia and their expertise has been established across Asian markets. As FinTech is set to continue taking profits from traditional banking institutions, the sector has no choice but to evolve. The ability to provide services online, through different platforms is key. FinTech has had huge success in emerging markets in Latin America. Across the Pacific, Australia’s R&D culture combined with impressive digital infrastructure only enhances the opportunities available. Accessibility to financial services is on the up, and so is investment in FinTech.

Tourism

Australia’s impressive tourism industry provides something for all types of tourists. Excellent beaches with diving reefs, exotic wildlife, vineyards and cosmopolitan cities are drawing in more tourists to the South-Pacific nation each year. Australia received 2.7% of world international tourist arrivals but received 10.7% of world international tourism receipts. This statistic shows that tourists visiting Australia are high-value consumers and spend accordingly.

New airlines routes between Asia and the Middle East are further connecting Australia with Asia, diversifying the countries visitors. Extensive business opportunities exist in the tourism sector, as global firms continue making high-value investments. Project pipelines show nearly 53,000 accommodation rooms planned for completion by 2028. Two-thirds of the investment in Australia’s hotel industry came for foreign investors in 2018. There is substantial interest from Asian players such as Singapore, Malaysia, Hong Kong and India, as well as the Middle East and the United Kingdom.

Australia’s open economy and strong economic track record propel investments in its thriving industries into long-term success stories. With many longstanding and emerging opportunities to set up a business in Australia, a diverse range of businesses can experience commercial success.