The Australian and New Zealand software spending market has reached a new milestone, with a total of $20.9 billion in 2023, representing a 17.3% year-over-year growth. Despite economic uncertainty, businesses in the region are prioritizing investments in applications and software to boost productivity and efficiency. The artificial intelligence (AI) platforms software market has experienced remarkable growth, with a 62.3% year-over-year increase, driven by the increasing adoption of generative AI. IDC forecasts the A/NZ software market to reach nearly $39 billion by 2028, with a compound annual growth rate of 13.2%. The growth of AI investments is driven by the desire to improve employee productivity, with government agencies in both countries supporting AI implementations and use.
While the economic conditions in New Zealand have been challenging, the Australian economy has held up strongly, and businesses are focusing on controlling costs while investing in technology. IDC’s research manager, Anastasia Antonova, notes that despite the economic pressures, businesses are prioritizing investments in applications and software to achieve productivity and efficiency gains. The growth of AI investments is expected to continue, with the artificial intelligence platforms software market expected to reach over $3.5 billion by 2028.
