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View moreThe Health and Life Sciences Cluster integrates a wide spectrum of market segments, ranging from medical technology devices, pharmaceuticals, biotechnology, and life sciences to research institutions and government stakeholders.
Bringing together stakeholders from industry and research, as well as services, policy, regulatory authorities, and market consultants, our Health and Life Sciences Cluster provides its members the opportunity to influence and actively engage with industry partners and stakeholders and thus shape an industry advocacy roadmap and access valuable insights and connections. Members will be invited to industry-focused events and activities for networking, learning, speaking, hosting and sponsoring opportunities aimed at both the German and the Australian markets. You will also benefit from complementary consulting services and heightened exposure and visibility. Find out more about membership options here.
For new entrants to the market, the Australian Health Sector promises continuous growth in the coming years. Australians highly value good medical care and the aging population is leading to rising demand for branch-specific products. Further, Australia’s huge geographical dispersion and remoteness for some of its population, combined with congestion of health care service providers and a strong push for digitalisation in the health care sector, allows for great opportunities in the field of digital health solutions.
Medical devices and technologies, the pharmaceutical industry, and the biotechnology sector are promising fields for foreign investors. While Australia has one of the world’s leading health systems, a growing and aging population are placing great demand on the Health Sector. The Australian society faces internal pressures driven by:
These will need to be addressed by private and public investment.
In 2022–23, health spending accounted for 9.9% of the gross domestic product (GDP) in Australia, putting the healthcare industry in the leading position for all expenditures. Health expenditures per capita equalled $9,597 in 2022-23, making Australia one of the world’s top 10 countries in terms of per capita expenditure. Healthcare and Social Assistance is also the largest employing industry in Australia providing work to over 15.8% of all employees.
The current government is strongly committed to strengthening the Australian health system and patient access to innovative treatments. Equal access to more medicine via the PBS is the goal of the recent HTA Review recommendations and the Digital Health Roadmap seeks to enhance digital health solutions. The government also supports investments in Australian health and medical research with initiatives such as the Medical Research Future Fund, which will benefit from additional funding, and the inclusion of medical products manufacturing in the Modern Manufacturing Initiative. Additionally, Australian state and territory governments have dedicated investment in the current budgets to build and redevelop hospitals and health facilities across the nation.
Australia’s universities are part of the world’s leading institutions in pharmaceutical research and medicine.
Australia relies heavily on imports to cover the market demand for medical technology products: Approximately 90% of medical technology devices are imported, with Germany being one of the main supplier countries. Companies operating in the Australian medical device and diagnostics sector are well-positioned to develop new products and bring innovative ideas to market. A reduced time to market compared with drug discovery provides a competitive advantage and a highly skilled workforce and strategic geographic position in the Asia-Pacific Region further strengthen the sector. The core of the Australian medical technology sector is made of small companies with only a few larger industry player.
While Australia only accounts for 0.3% of the world’s population, its demand for pharmaceuticals is significant. Around 1% of all global pharmaceutical sales are contributed to the Australian market which places it as the 12th largest market in the world with an estimated revenue of AUD$21.0 billion in 2022 and expected growth of over 4.6% until 2027. Australia heavily relies on overseas imports for over 90% of its demand in medicines. Combined with a lack of major manufacturing capabilities for medical supplies, Australia faces high import dependencies. Around 70% of Australia's medical imports originate from Europe. Regulatory approval and reimbursement processes can be lengthy.
Australia's biotechnology sector is experiencing strong growth, with an estimated turnover of A$ 11.9 billion in 2024, expected to rise to A$ 14.4 billion by 2030, driven by an average annual growth rate of 3.9%. The sector benefits from high demand, a large number of active companies, and a dynamic start-up scene. Growth is also fueled by government and university research institutions, as well as incubation funds that support businesses. Human medicine remains the most significant market segment, while there are also opportunities for importers of scientific equipment, as 90% of such goods are sourced from abroad, particularly Germany.
The biotechnology sector in Australia is projected to grow from A$ 11.9 billion in 2024 to A$ 14.4 billion by 2030, with an annual growth rate of 3.9%.
High demand, numerous active companies, and research support from government and university institutions, along with a focus on human medicine, are major contributors to growth.
90% of scientific equipment and lab technology in Australia is imported, with a significant portion, including measuring equipment, sourced from Germany.
Business Partner Representation, Business Partner Matching, Market Analysis, Company Incorporation, Tax & Legal and Human Resources
The right business network is essential to a company's success. With over 300 members from various industries and company...
View moreCluster Manager - Health and Life Sciences
+61 (0)2 8296 0433 bettina.schels@germany.org.au