The Australian cyber security market in 2026: size, growth and key players

A$6.1bn in sector revenue, 300+ local firms and spending forecast to almost double by 2031. What vendors entering Australia and New Zealand need to know.

Australia remains one of the most attractive cyber security markets in the region: high threat levels, regulation that forces action, and buyers who adopt new technology early. For vendors looking at Australia and New Zealand, here is where the market stands.

Market size and growth

• Australian cyber sector revenue reached A$6.13 billion in 2024, up 9.7% on the year, with gross value added of A$9.99 billion (Australian Cyber Network).
• More than 300 cyber companies, 97% of them Australian-owned, and over 137,000 cyber jobs. The workforce is forecast to grow 41% by 2029.
• Investment in cyber start-ups more than tripled to A$348 million.
• Cyber security spending is forecast at US$10.0 billion in 2026, rising to US$19.0 billion by 2031, a 13.6% compound annual growth rate. Cloud accounts for about 64% of spend (Mordor Intelligence).

What is driving demand

• Threat volume: 69% of Australian businesses faced a ransomware attack in 2024, and Australia ranks fourth globally for attacks on critical infrastructure (Australian Cyber Network).
• Regulation: critical infrastructure obligations and mandatory ransomware payment reporting under the Cyber Security Act 2024 push boards to invest.
• Government: the 2023-2030 Australian Cyber Security Strategy and growing public sector demand.
• Cloud and AI adoption, which widen the attack surface and shift spend to cloud security, identity and managed services.

Key players

• Local services leaders: CyberCX and Telstra Purple.
• Global consultancies and integrators: Accenture.
• Platform vendors: Microsoft, Palo Alto Networks, CrowdStrike, Fortinet, Check Point, Cisco, CyberArk and Darktrace.
• A long tail of 300+ Australian-owned specialists, many of them growing fast on start-up investment.

What this means for vendors entering ANZ

The market is growing, but it is crowded and relationship-driven. Buyers in government and critical infrastructure want local presence, local references and partners they already trust. Most vendors win through the channel and integrators rather than direct sales alone. Virtual Vendors helps vendors launch and grow in Australia and New Zealand without the cost of a full local team. Contact Greg at greg.ryan@virtualvendors.com.au.

Sources

• Australian Cyber Network, State of the Industry 2024 (via SecurityBrief)
• Mordor Intelligence, Australia Cybersecurity Market 2026-2031