Australia’s digital economy is worth $79 billion – more than retail, agriculture industries

If Australia’s digital economy were classified as an industry, it would be larger than our agriculture, transport or retail sectors, according to a report released this week by Deloitte Access Economics.

The Connected Continent II 2015 report values Australia’s digital economy at $79 billion, or 5.1% of gross domestic product in 2013–14. When the report was last conducted in 2011, the digital economy was estimated to be worth $50 million, highlighting the rapid growth in Australia’s digital appetite.

By 2020, it is estimated the digital economy could be worth $139 billion, or 7.3% of GDP.

Deloitte found the positive impact of digital technologies on Australian productivity contributed to making the economy about $45 billion bigger in 2013 than it otherwise would have been.

“Digital technologies clearly have the potential to support transformation across different businesses, from traditional areas such as retail and manufacturing, to service businesses such as banking and business services,” said the report.

The study said businesses are reaching new customers and responding to customer needs by going online and using social media, but are also turning to digital for internal business transformational change, such as the use of cloud technologies, data analytics, and machine-to-machine technologies.