Executive Summary (One-Page Overview)

Australia's hospital software market is valued at A$4.2B and is entering a period of rapid transformation. Government mandates, major public investments, and fast-moving technology are reshaping the competitive landscape. For vendors and investors, this is a structural shift that will define market leadership through 2030.

Key Numbers

  • Current Market Size: A$4.2B (2024)
  • Projected Size: A$6.8–7.9B by 2030 (CAGR 9–11%)
  • Public Sector Share: 74% (A$3.1B)
  • Private Sector Share: 26% (A$1.1B)

Top Growth Segments

  • Analytics & AI: 22% CAGR
  • SaaS Solutions: 22.1% CAGR

Strategic Drivers

  • National FHIR mandate (interoperability is non-negotiable)
  • Cybersecurity costs now exceed software licensing (avg breach: A$10.9M)
  • Cloud migration: 72% of hospitals moving core apps to sovereign/hybrid cloud
  • AI adoption delivering ROI, governance lagging

Vendor Dynamics

  • Epic gains ground with NSW's A$2.2B SDPR deal
  • Oracle Health faces pressure from local innovators like Alcidion and Telstra Health
What It Means: Success will depend on interoperability, security, and delivering measurable outcomes.

Visual Snapshot (Chart Pack Summary)

Market Size & Growth

  • 2024: A$4.2B
  • 2030: A$6.8–7.9B

Segment Growth Rates

  • EMR/EHR: 7–9%
  • Analytics & AI: 22%
  • SaaS: 22.1%

Public vs Private Split

  • Public: 74%
  • Private: 26%

Key Risks

  • Cybersecurity breaches (avg cost A$10.9M)
  • Workforce shortages (change management = 25% of TCO)

Strategic Moves

  • Vendors: Build FHIR-native platforms, bundle security, offer KPI-linked pricing
  • Providers: Budget for change management, prioritize cybersecurity
  • Investors: Track public sector wins and local innovators
Bottom Line: Australia's hospital software market is growing fast and changing even faster. The winners will be those who align with national standards, manage risk, and deliver clear outcomes.