Australia Advanced Manufacturing - Industry - Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

As a high-cost economy, Australia saw much of its traditional large-scale manufacturing in sectors like automotives and consumer appliances offshored over the past decades. But the country aims to rebuild advanced manufacturing focused on high-value niches like medical devices, specialized machinery and defense equipment. Food processing also continues to be an area of strength given abundant agriculture.

Backed by ample natural resources, a skilled workforce and proximity to fast-growing Asia, Australia is making use of technologies like automation, IoT sensors and data analytics to enable small-batch smart manufacturing. The federal government has introduced a $1.3 billion Modern Manufacturing Strategy supporting lower taxes, supply chain development and technical skills.

Manufacturing holds for about six percent of GDP. Food and beverage manufacturing comprises 30 percent of total manufacturing turnover. Meat and meat products, beverages and dairy products are the largest subsectors.  The other main manufacturing sectors are pulp and paper, printing, chemicals, metals (Australia has many structural and sheet metal fabricators) and machinery and equipment.

According to our estimates – we can say that the advanced manufacturing industry in Australia is forecasted to be a $ 7.15 Billion industry in 2029 from $ 5.04 Billion in 2023 with a CAGR of 6 %.

Additionally— Australia’s scientific research strengths, stable governance and English language proficiency differentiate it from manufacturing rivals in Asia. Leveraging these structural advantages to foster globally-linked innovation ecosystems will be key to driving future competitiveness – both in high-value exports and import substitution.

Recent Trends and Insights

Australia is piloting numerous testbed projects in advanced manufacturing spanning autonomous mining systems, agricultural technology like AI-guided harvesters and food quality sensors. Pharma and medtech production are also emerging strengths given rising Asia demand.

However, small local market size, high labor costs and geographic isolation pose scaling challenges. Past offshoring also eroded critical mass across manufacturing ecosystems. But high-mix, low-volume capabilities coupled with digitally-enabled customization provide avenues to rebuild manufacturing.

The value of Australia’s total Additive Manufacturing/3D Printing market is estimated at USD70 million.  In a similar manner to global occurrences, demand is gradually shifting from the hobbyist to the commercial and industrial market but from a very low base. 

Within the manufacturing sector – Australia is not known as an early adopter of technology and so demand has lagged somewhat behind other markets in the region like Japan and Korea.  However— Australia is a rapid adopter, once there is a lot of traction around the technology and the next five years are likely to see an increasing demand for professional and industrial-grade 3D printing solutions.

Public-private partnerships, such as the Innovative Manufacturing Cooperative Research Centre, provide conduits to demonstrate and de-risk new technologies before wider industry adoption. However— translating prototypes into commercial solutions at scale remains a persistent challenge. Building out full manufacturing ecosystems for emerging sectors will be crucial.

Product Insights

Australia is exploring advanced techniques in niche sectors where it holds advantages – mining equipment, specialized machinery for agriculture/construction, medical devices, defense and food innovation. Technologies being adopted include automation, 3D printing, industrial IoT and lightweight materials.

While still early stage, universities and startups are collaborating around cutting-edge product development in areas like biodegradable packaging, robotic crop monitoring and wearable medtech devices. Translation into commercial scale remains key challenge.

Food and beverages; together with medical, defence (including aerospace) and space – are four of the six national priority sectors being developed and supported by the Australian government. These are already established markets for 3D printing solutions. Other current applications in Australia include automotive (mostly aftermarket), architecture and dentistry.

3D printing is mostly used by Australian firms for prototype and concept modelling. Some applications include the fabrication of production parts, albeit this is presently limited. 3D printing is still mostly outsourced for industrial and commercial uses.

Key companies

Some major players within this vast domain of industry are:

• Cochlear
• ResMed
• ANCA
• Circa Group
• Quickstep Holdings
• Titomic
• Silex Systems
• Rio Tinto
• Silex Systems

Country Analysis

Australia’s investments into rebuilding onshore manufacturing capabilities in targeted niches demonstrate leadership. Utilizing research strengths at universities and public-private partnerships around demonstrating use cases is a pragmatic approach given geographic isolation and market size constraints. Developing best practices locally in advanced manufacturing can also enable global export.

However— the small scale of the domestic economy ultimately caps manufacturing potential. Realizing Australia’s advanced manufacturing promise relies on effectively leveraging proximity and linkages with the large Asian markets across the supply chain. An outward-focused, export-driven strategy is imperative for sustainable growth.

Australia presents strong government support for industry innovation and commercialization as well as investment in research and development– particularly in the advanced manufacturing sector.

Australia supports makes use of a strong talent pool of engineers and materials scientists as well as a highly skilled and motivated workforce, including- skilled workers from overseas attracted by the country’s favorable living conditions.

The country’s abundant natural resources provide access to locally sourced raw materials, which is advantageous for manufacturing businesses.

Market segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

Our Methodology

We have offered a well-founded review of Australia’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.