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Capital expenditure on computer software in Australia - Data and Analysis (1986-2034)
IBISWorld forecasts private capital expenditure on computer software to climb by 10.7% during 2026-27, to reach $41.4 billion. Despite private-sector expenditure slowing and ongoing inflationary pressures over the year, businesses have lifted investment in software to remain competitive and ease wage pressures. Businesses across various industries have significantly increased their investment in artificial intelligence (AI) software, embracing its potential to enhance operations and productivity. The adoption of cloud computing has increased, spurring spending on data storage and web hosting software, while the release of OpenAI's ChatGPT in 2022 expanded access for the general public, leading to a sustained increase in demand for AI software. With AI increasingly being integrated into workflows, whether as a subscription or into existing software products, spending on AI software has surged, lifting total capital expenditure on computer software. For example, according to the National Artificial Intelligence Centre's research, over the quarter through the end of February 2026 (the latest data available), 44% of Australian Small and Medium-sized Enterprises are adopting AI, while Gartner estimates that Australian businesses have doubled their spending on AI infrastructure annually through 2026. Growing wage expenses have incentivised employers to find cost-saving solutions to sidestep this cost pressure. Many are doing this by investing in productivity software to boost average output per employee. The popularity of online shopping has supported retailers' investment in internet-based sales and customer service channels over the past five years. Commercial banks have continued to modernise their online banking services, investing in cloud infrastructure, data platforms and fraud-prevention software to improve digital service delivery and make financial products more accessible. For instance, Commonwealth Bank completed the migration of its core banking platform to Amazon Web Services in 2026, transferring 17 million customers and 28 million accounts to the cloud. The project is expected to support the detection of AI-enabled fraud, scams and cyber threats, while enabling the bank to scale up with ease in the future. A rise in the prevalence of cybersecurity issues following the rapid adoption of AI has prompted many organisations to increase spending on IT security software to safeguard their data from unauthorised access. Gartner has forecast that information-security spending is set to climb 9.5% to exceed $7.5 billion in 2026, building on a 8.4% rise in 2025. Overall, due to stronger spending on digital technology, IBISWorld forecasts private capital expenditure on computer software to climb at a compound annual rate of 10.0% over the five years through 2026-27.
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Capital expenditure on computer software
1986-2034
Estimated Value in 2027
$XX
2022-27 CAGR XX%
2026-27 Change XX%
Forecast Value in 2034
$XX
2027-34 CAGR XX%
2027-28 Change XX%
This report analyses total fixed capital expenditure on computer software by the private sector. This includes purchased software, software that is developed in-house and databases that are expected to be used over a period of at least one year. The data for this report is sourced from the Australian Bureau of Statistics and is measured in billions of seasonally adjusted 2023-24 dollars.
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Frequently Asked Questions
What was the capital expenditure on computer software in Australia in 2027?
The capital expenditure on computer software in Australia in 2027 was $41.4 billion.
How has the capital expenditure on computer software in Australia changed in 2027?
The capital expenditure on computer software in Australia grew by 10.01% in 2027.
What was the forecast growth rate of capital expenditure on computer software in Australia over the next five years?
IBISWorld’s data and analysis on capital expenditure on computer software in Australia includes forecasted growth rates over the next five years.
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