Australia Digital Health Market, By Technology (Tele-healthcare, mHealth, Digital Health Systems, Healthcare Analytics), By Component (Software, Hardware, Services), By Application (Obesity, Diabetes, Cardiovascular, Respiratory Diseases, Others), By End User (Patients, Providers, Payers, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Australia Digital Health Market was valued at USD 5.40 Billion in 2024 and is expected to reach USD 13.08 Billion by 2030 with a CAGR of 15.85%. The Australia Digital Health Market is undergoing a significant transformation, underpinned by strategic government investment, accelerated technological advancement, and a pressing need for scalable, patient-focused healthcare delivery models. Recent industry data indicates that the market is witnessing sustained double-digit growth, driven by the convergence of nationwide telehealth adoption, consumer-driven digital engagement, and the deployment of advanced analytics and AI-powered platforms across both public and private healthcare systems.

The market is set for long-term structural expansion, with growth supported by national healthcare reform agendas, workforce shortages, and increasing demand for decentralized, digitally enabled care. Key strategic priorities include system interoperability, cybersecurity resilience, data governance, and the development of integrated, end-to-end digital care ecosystems.

Market leaders that focus on compliance with evolving regulatory standards, user-centered design, and seamless cross-platform integration will be strongly positioned to capture value in this evolving digital landscape. As Australia shifts toward a digitally mature healthcare framework, stakeholders across the value chain from providers and payers to technology vendors are expected to intensify investment in solutions that improve clinical efficiency, reduce costs, and enhance patient outcomes.

Key Market Drivers

High Burden of Chronic Diseases

The high burden of chronic diseases in Australia is a major driver of growth in the digital health market, as it creates a sustained need for continuous care, long-term monitoring, and proactive health management all of which are effectively supported by digital health technologies. With chronic conditions accounting for a significant proportion of healthcare utilization and expenditure, digital solutions offer a scalable, cost-effective, and patient-centric approach to disease management. Chronic conditions including diabetes, cardiovascular disease, hypertension, chronic respiratory disorders, and mental health issues represent a substantial burden on Australia’s healthcare system. According to data from the Australian Bureau of Statistics, as of 2022, nearly half the population (49.9%) was living with at least one diagnosed chronic condition. The long-term nature of these diseases necessitates frequent medical attention, ongoing monitoring, and coordinated care, which traditional healthcare systems often struggle to deliver efficiently at scale.

Digital health enables a transition from reactive care to preventive and predictive care models, which are particularly valuable in managing chronic illnesses. Tools such as wearables, smartphone apps, and digital coaching platforms allow patients to track vital signs, medication adherence, lifestyle factors (e.g., diet, physical activity), and symptom progression facilitating early intervention and reducing the risk of complications. According to reports indicate that approximately one in four Australians (25%) actively use wearable devices such as fitness trackers and smartwatches for monitoring personal health and fitness metrics. In parallel, a study conducted by the University of Sydney reveals that nearly 60% of Australian adults engage with mobile health applications to manage aspects of their well-being, including medication reminders, dietary tracking, and mental health support. Healthcare providers use this data to deliver timely, evidence-based care, lowering the overall disease burden and improving population health outcomes.

Managing chronic diseases often involves regular consultations, medication management, and lifestyle interventions tasks well-suited to virtual care. Telehealth and remote patient monitoring (RPM) tools allow physicians to manage large patient populations efficiently while enabling individuals to receive care from the comfort of their homes. AI-driven platforms can offer personalized treatment recommendations and behavioral nudges, tailored to an individual’s medical history and real-time health data, enhancing engagement and treatment adherence. Chronic diseases significantly increase demand for healthcare services, placing pressure on hospitals, clinics, and general practitioners. Digital health solutions alleviate this strain by streamlining care delivery, automating routine tasks, and enabling virtual multidisciplinary collaboration. This results in cost savings, reduced hospital admissions, and better allocation of clinical resources, making digital health an essential component of chronic disease care.

Workforce Shortages and Healthcare System Pressure

Workforce shortages and growing pressure on Australia’s healthcare system are key drivers accelerating the adoption and expansion of the digital health market. As healthcare providers face increasing demand, aging populations, and clinician burnout, digital solutions offer a scalable, efficient, and sustainable way to fill gaps, optimize workflows, and maintain the quality of care. As of 2023, 82% of healthcare occupations in Australia were classified as being in shortage, underscoring a critical workforce crisis across the sector. Projections indicate that by 2025, the country will face a deficit of 100,000 nurses, increasing to 123,000 by 2030, placing substantial strain on health service delivery. The impact is particularly severe in rural and remote regions, where the healthcare workforce per capita is up to 50% lower than in metropolitan areas, limiting access to essential medical services. Additionally, the aged care sector requires an additional 17,000 workers annually just to sustain current standards of care. These workforce pressures are accelerating the adoption of digital health technologies to enhance service coverage, streamline operations, and reduce dependency on physical infrastructure and personnel. Australia is grappling with nationwide shortages of general practitioners (GPs), nurses, allied health professionals, and specialists, particularly in rural and remote areas. These workforce gaps have created a critical need for technology-enabled care models that extend the reach of healthcare professionals without physically expanding the workforce. Telehealth, remote patient monitoring (RPM), virtual triage systems, and AI-driven diagnostic tools help mitigate staffing shortages by reducing their dependency on face-to-face consultations and enabling providers to serve more patients with fewer resources.

An aging population and the rising incidence of chronic diseases are placing long-term pressure on Australia’s healthcare infrastructure. This increased demand strains the existing workforce, leading to longer waiting times, reduced appointment availability, and clinician fatigue. Digital health platforms can automate administrative tasks, streamline patient intake, and digitize routine assessments, freeing up clinicians to focus on complex cases and improving patient throughput. Digital health tools, such as electronic medical records (EMRs), clinical decision support systems (CDSS), virtual care platforms, and workflow automation, play a vital role in reducing administrative burdens on overstretched staff. Automating processes like appointment scheduling, documentation, billing, and care coordination minimizes manual workload, improves accuracy, and enhances operational efficiency essential amid labor constraints.

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Key Market Challenges

Interoperability and System Fragmentation

Australia’s healthcare ecosystem is characterized by a mix of public and private providers, each operating with disparate digital systems, platforms, and data standards. This has led to fragmented digital infrastructure, making it difficult to share and integrate patient data across hospitals, clinics, specialists, and allied health professionals.

Disrupted care continuity due to incomplete patient records or duplicate testing. Inefficiencies in workflow and delays in clinical decision-making. Limits the effectiveness of national platforms like My Health Record, which depend on standardized and timely data input from all providers. Increased IT costs as providers need custom-built integrations and middleware to bridge systems.

Until the Australian digital health ecosystem adopts uniform interoperability standards and data frameworks, large-scale integration will remain limited, constraining the scalability of health tech solutions and deterring private sector investment.

Data Privacy, Cybersecurity, and Regulatory Complexity

As digital health platforms collect and store large volumes of sensitive personal health data, concerns around data breaches, misuse, and compliance with privacy legislation have intensified. Australia’s Privacy Act 1988, along with evolving cybersecurity mandates, imposes strict obligations on health tech providers.

Digital health startups and SMEs face high compliance costs to meet regulatory standards. Risk of reputation damage and legal exposure in the event of a data breach. Hospitals and providers may be hesitant to adopt new digital platforms due to perceived risks associated with data security and regulatory ambiguity. Delays in procurement and implementation cycles due to complex privacy assessments and security audits.

Addressing these concerns requires significant investment in cybersecurity infrastructure, governance frameworks, and patient consent management systems, which can slow down market entry and increase operating costs for technology vendors.

Key Market Trends

Expansion of AI and Data-Driven Healthcare

Artificial Intelligence (AI), machine learning, and predictive analytics are playing an increasingly strategic role in Australia’s digital health ecosystem. These technologies are transforming clinical workflows, enhancing diagnostic accuracy, and enabling personalized care at scale.

Health institutions and startups are investing in AI-powered tools for radiology, pathology, and early disease detection, particularly for chronic illnesses and cancer. Predictive algorithms are being used to anticipate patient deterioration, optimize hospital resource allocation, and flag high-risk individuals based on EHR data. National datasets like My Health Record are becoming rich sources for population health analysis, informing both public health policy and commercial innovation.

The AI-driven health tech segment offers strong growth opportunities, particularly for companies offering diagnostic support systems, automated triage tools, clinical decision support, and real-time patient monitoring platforms. As regulatory confidence and clinician trust in AI increase, these tools are expected to become standard across Australian hospitals and outpatient services.

Rise of Consumer-Centric Digital Health Platforms

There is a marked shift towards consumer-driven healthcare models, where patients increasingly expect convenience, transparency, and personalization similar to other service industries. This is fueling growth in digital health platforms that enable self-management, remote access, and direct-to-consumer services.

A growing percentage of Australians use mobile apps, wearable devices, and online health portals to monitor fitness, mental wellness, and chronic conditions. Startups and health providers are rolling out patient-centric tools that offer real-time access to medical records, virtual consultations, medication reminders, and wellness tracking. Demand for digital mental health solutions including AI chatbots, online therapy, and CBT apps is surging, particularly post-COVID.

Digital platforms that prioritize user experience, interoperability, and data ownership are gaining traction. Companies that integrate features like telehealth, health coaching, prescription delivery, and secure messaging into a single user interface are well-positioned to capture consumer loyalty and market share.

Segmental Insights

Technology Insights

Based on the category of Technology, the telehealthcare segment emerged as the fastest growing segment in the Australia Digital Health Market in 2024. Australia's vast geography and low population density in remote areas have made telehealth solutions critical for providing equitable access to healthcare. Telehealth bridges the gap between metropolitan health providers and rural or underserved communities, ensuring continuity of care without the need for travel. This logistical advantage has been a significant catalyst for its widespread implementation. The Australian Government has been highly supportive of telehealth through Medicare-funded telehealth consultations and the introduction of digital health initiatives under the National Digital Health Strategy. During and post-COVID-19, the government expanded funding and reimbursement options for teleconsultations, firmly embedding telehealth into the national healthcare system.

The pandemic accelerated the normalization of virtual consultations, with both healthcare providers and patients becoming increasingly comfortable using digital platforms. The convenience, time efficiency, and cost-effectiveness of remote care have sustained its usage even after pandemic-related restrictions were lifted. Telehealthcare in Australia is not limited to video consultations. It encompasses remote patient monitoring, virtual chronic disease management, and mental health support services all integrated with platforms like My Health Record, enabling seamless sharing of patient data and medical history among providers. These factors are expected to drive the growth of this segment.

Component Insights

Based on the category of Component, the Services segment emerged as the dominating in the Australia Digital Health Market in 2024. The primary growth drivers for the services segment is the surging adoption of teleconsultation, remote patient monitoring, virtual mental health support, and chronic disease management services. These services address long-standing geographic and access-related challenges in Australia, especially in rural and Indigenous communities. With government-backed funding through Medicare-subsidized telehealth services, both public and private healthcare providers are increasingly outsourcing or scaling their service delivery models, further expanding the services market.

As Australia accelerates the adoption of digital health platforms like My Health Record, there is a growing need for system integration services that ensure seamless communication between electronic medical records (EMRs), hospital information systems, and wearable technologies. Health IT services that support data migration, cloud implementation, cybersecurity, and cross-platform interoperability are increasingly sought after by hospitals and clinics, driving sustained demand. Beyond deployment, digital health systems require continuous technical support, regular upgrades, system monitoring, and cybersecurity oversight. Hospitals and healthcare networks are investing in outsourced managed services, including 24/7 technical support, to reduce downtime and ensure compliance with data privacy regulations such as the Privacy Act 1988 and the Australian Digital Health Agency (ADHA) standards

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Regional Insights

Victoria and Tasmania emerged as the largest market in the Australia Digital Health Market in 2024, holding the largest market share in terms of value. Victoria, home to Melbourne, stands out as a digital health hub due to its well-established healthcare ecosystem, strong government investment in innovation, and presence of leading health-tech companies and research institutions. The Victorian Government’s Digital Health Roadmap outlines ambitious goals for telehealth, electronic medical records (EMRs), AI in diagnostics, and digital pathology. Tasmania, while smaller in population, has benefited from national and state-level funding to improve healthcare access through telemedicine and remote monitoring, particularly in regional areas. The region boasts high digital literacy, strong broadband connectivity, and dense hospital networks, all of which facilitate the integration of digital health technologies. Government-supported programs such as the Victorian Connected Health Innovation and Business Accelerator (CHIBA) further reinforce this leadership by accelerating the development and deployment of digital health solutions.

Recent Developments

• In July 2025- The Australian Digital Health Agency has officially launched Health Connect Australia, a national initiative aimed at enhancing secure, real-time access to health information across the country’s healthcare ecosystem. As part of this rollout, the Agency has also released the Health Connect Australia Strategy, Architecture, and Roadmap, which outlines a unified framework for achieving interoperability between healthcare providers, systems, and technologies.
• In March 2025, HIMSS has entered into a strategic partnership with Evolve Health Digital to deliver specialized digital health certification programs tailored for the Australian healthcare workforce. These programs are designed to build practical competencies in health information technology, digital transformation strategies, and data-driven clinical and operational decision-making. The initiative addresses a critical skills gap in Australia’s rapidly evolving digital health landscape, aiming to upskill healthcare professionals across hospitals, primary care, and allied health settings. By aligning global best practices with local healthcare priorities, the partnership seeks to accelerate digital maturity and strengthen workforce readiness for a more connected, technology-enabled health system.   

Key Market Players

• Epic Systems Corporation
• AT&T
• AirStrip Technologies
• Google Australia Pty Ltd
• Vocera Communications Australia Pty Limited
• IBM Australia Limited
• CISCO Systems, Inc
• Apple Inc
• McKesson Corporation
• Qualcomm Technologies, Inc.

Report Scope:

In this report, the Australia Digital Health Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Digital Health Market, By Technology:

o   Tele-healthcare

o   mHealth

o   Digital Health Systems

o   Healthcare Analytics

• Australia Digital Health Market, By Component:

o   Software

o   Hardware

o   Services

• Australia Digital Health Market, By Application:

o   Obesity

o   Diabetes

o   Cardiovascular

o   Respiratory Diseases

o   Others

• Australia Digital Health Market, By End User:

o   Patients

o   Providers

o   Payers

o   Others

• Australia Digital Health Market, By Region:

o   Australia Capital Territory & New South Wales

o   Northern Territory & Southern Australia

o   Western Australia

o   Queensland

o   Victoria & Tasmania

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Australia Digital Health Market.

Available Customizations:

 Australia Digital Health market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).