The Australian Cyber Security Growth Network (ACSGN) estimates that Australia’s cyber security sector will triple in the next decade, reaching revenues of $6 billion by 2026. By 2020, the global cyber security market could be worth $170 billion US.
On 20th April, the Australian Government launched its Cyber Security Sector Competitiveness Plan (SCP), which aims to grow and strengthen the Australian cyber security sector.
There is a huge growth in demand for security across the Indo-Pacific, giving Australia an advantage geographically. The SCP found that Australia also has a competitive advantage in integrated platform software and high-grade security-related niche hardware. While Australia is attracting global cyber security firms like IBM and CSC, Australian-based companies include Senetas, MailGuard and Quintessence Labs.
While Australia is attracting global cyber security firms like IBM and CSC, Australian-based companies include Senetas, MailGuard and Quintessence Labs.
For Australian firms to achieve strong growth, the ACSGN believes that we need to improve in at least three main areas, namely a local skills shortage, an inhibiting market environment and inefficient research and commercialisation.
The local skills shortage is limiting the growth of the industry, and at least 11,000 more workers will be required in the next 10 years. Australian educational institutions will play a major role in alleviating this issue.
In regards to the constricting market environment, governments and other organisations often contract large overseas providers with more resources. However, if the work was divided into smaller contracts, this would give small Australian start-up companies a better chance.
Furthermore, scattered public funding and limited collaboration between researchers and businesses limits the number of marketable solutions available. R&D tax incentives, targeted funding programs and grants will help to overcome this barrier. In addition, a $30 million Cybersecurity Growth Centre has been announced as part of the government’s Innovation Agenda.
Lynwen Connick from the Department of Prime Minister and Cabinet stated that “The new growth centre will bring together industry, researchers and governments to create a national cyber security innovation network that combines existing research and innovation efforts and connects cyber security challenges to new ideas and solutions.
“It will help grow Australia’s cyber security sector and help all Australians and businesses be more secure online.”
If your company is undertaking R&D in the cyber security space, contact Swanson Reed Tax Advisors to find out whether you qualify for the R&D tax incentive.