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AU ANZSIC OD5463 | Industry Report

Software Suppliers in Australia Industry Data and Analysis

JC
Jayson Cooke
Analyst Melbourne, Australia September 2025

The Software Suppliers Industry, powered by enhanced internet capabilities and the rise of digital downloads, has pivoted largely towards Software as a Service (SaaS) models. Through SaaS subscription models, software suppliers charge clients an annual or monthly subscription fee to access software, giving suppliers stable revenue streams and reducing concerns regarding software piracy. Although online sales platforms have magnified competition from foreign entities, revenue from households has grown thanks to increased online connectivity and cloud computing. Economic uncertainty over the past five years meant that revenue growth has been uneven, particularly in regard to corporate software expenditure. However, industry revenue has surged overall, spurred on by continued digitalisation (through cloud storage, for example) and sought-after productivity software. Revenue is expected to climb at an annualised 7.9% to $31.2 billion over the five years through 2025-26, when revenue is anticipated to grow 4.8%.

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What's included in this industry analysis

IBISWorld's research coverage on the Software Suppliers industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.

About this industry

What's this industry report about?

The Software Suppliers industry in Australia operates under the ANZSIC industry code OD5463. Software suppliers primarily wholesale computer software and provide services related to computer software. The industry includes distributing physical software, digital downloads and providing related after-sales service. Related terms covered in the Software Suppliers industry in Australia include cloud computing, on-premises computing and software as a service (saas).

What's included in this industry?

Products and services covered in Software Suppliers industry in Australia include Operating systems and productivity software, Database, storage and backup software and Business analytics and enterprise software.

What companies are included in this industry?

Companies covered in the Software Suppliers industry in Australia include Microsoft, Atlassian and Xero.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Software Suppliers industry in Australia.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Software Suppliers industry in Australia.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Software Suppliers industry in Australia.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Software Suppliers industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Software Suppliers industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Software Suppliers industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Software Suppliers industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Software Suppliers industry in Australia.

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Frequently Asked Questions

What is the market size of the Software Suppliers industry in Australia in 2026?

The market size of the Software Suppliers industry in Australia is $31.2bn in 2026.

How many businesses are there in the Software Suppliers industry in Australia in 2025?

There are 1,622 businesses in the Software Suppliers industry in Australia, which has grown at a CAGR of 6.1 % between 2020 and 2025.

How may import tariffs affect the Software Suppliers industry in Australia?

The Software Suppliers industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Software Suppliers industry in Australia?

The Software Suppliers industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Software Suppliers industry in Australia grown or declined over the past 5 years?

The market size of the Software Suppliers industry in Australia has been growing at a CAGR of 7.9 % between 2020 and 2025.

What is the forecast growth of the Software Suppliers industry in Australia over the next 5 years?

Over the next five years, the Software Suppliers industry in Australia is expected to grow.

What are the biggest companies in the Software Suppliers industry in Australia?

The biggest companies operating in the Software Suppliers industry in Australia are Microsoft, Atlassian and Xero

What does the Software Suppliers industry in Australia include?

Software wholesaling and Digital software retailing are part of the Software Suppliers industry in Australia.

Which companies have the highest market share in the Software Suppliers industry in Australia?

The company holding the most market share in the Software Suppliers industry in Australia is Microsoft.

How competitive is the Software Suppliers industry in Australia?

The level of competition is moderate and increasing in the Software Suppliers industry in Australia.

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