As Australia moves into 2025, its economy is expected to experience shifts across various sectors. Some industries will thrive due to changing consumer demands, technological advancements, and global economic trends, while others will face challenges due to economic pressures, automation, and structural changes. Here’s a look at the industries poised for growth and those likely to decline in 2025.
Industries Likely to Grow in 2025
- Renewable Energy
- Key Facts: Australia has committed to reducing carbon emissions, with substantial government investment in renewable energy. The transition to solar, wind, and hydrogen energy sources is expected to accelerate.
- Key Industries: Solar energy, wind energy, battery storage, green hydrogen.
- Healthcare and Aged Care
- Key Facts: Australia’s ageing population continues to drive demand for healthcare and aged care services. Innovations in telehealth and mental health services are also expanding the market.
- Key Industries: Aged care, mental health services, telemedicine, healthcare technology, pharmaceuticals.
- Technology and Cybersecurity
- Key Facts: The increasing reliance on digital infrastructure makes cybersecurity a high-demand field. Additionally, advancements in AI, data analytics, and machine learning will spur job creation in tech sectors.
- Key Industries: Cybersecurity, artificial intelligence, data science, software development, cloud computing.
- Construction and Infrastructure
- Key Facts: With a growing population and continued urbanisation, Australia’s infrastructure projects are set to rise, particularly in transport, housing, and public services.
- Key Industries: Residential and commercial construction, civil engineering, urban planning, public infrastructure projects.
- Agriculture and Agribusiness
- Key Facts: The demand for sustainable farming practices and increased agricultural exports, particularly in the Asia-Pacific region, will fuel growth in this sector.
- Key Industries: Agri-tech, sustainable farming, food processing, export-oriented agriculture.
- Tourism and Education
- Key Facts: With Australia’s borders now fully reopened post-pandemic, international tourism and education are expected to recover, particularly from Asia.
- Key Industries: Tourism, hospitality, international education, travel and leisure services.
Industries Likely to Decline in 2025
- Coal and Traditional Mining
- Key Facts: As Australia moves towards a greener economy, the coal industry faces a downturn due to global pressure to reduce carbon emissions and the transition to cleaner energy.
- Key Industries: Coal mining, fossil fuel extraction.
- Retail (Traditional)
- Key Facts: Traditional retail is struggling with the rise of e-commerce and changing consumer habits. Many brick-and-mortar stores will continue to close, with more businesses shifting to online models.
- Key Industries: Physical retail stores, shopping centres, department stores.
- Manufacturing (Traditional)
- Key Facts: Automation, offshoring, and the decline of the Australian manufacturing sector mean fewer jobs and less output in traditional industries like textiles, consumer goods, and automobiles.
- Key Industries: Textiles, automotive manufacturing, consumer electronics manufacturing.
- Print Media
- Key Facts: As digital media consumption increases, print media continues to decline, with newspapers and magazines seeing a reduction in circulation and advertising revenue.
- Key Industries: Newspaper publishing, magazine publishing, print advertising.
- Postal and Courier Services
- Key Facts: The rise of digital communication and delivery automation is impacting the demand for traditional postal and courier services.
- Key Industries: Traditional postal services, non-automated courier services.
Conclusion
In 2025, Australia’s economy will be shaped by industries that align with global trends towards sustainability, digitalisation, and healthcare. Renewable energy, technology, and healthcare are expected to see significant growth, while traditional industries like coal mining, retail, and print media may continue to decline. Employers and job seekers will need to adapt to these shifts, with an increasing focus on sectors that contribute to a greener, more digital, and more health-conscious future.
