Australia Medical Devices and Healthcare Technology Market Size, Share, Growth and Forecast, 2025-2035

Hospital renewal and chronic care lift equipment spending

The Australia medical devices and healthcare technology market was valued at USD 9.81 billion in 2025 and is projected to increase from USD 10.52 billion in 2026 to USD 19.25 billion by 2035, registering a CAGR of 6.95% during 2026–2035. Demand comes from public hospitals that replace scanners and surgical systems, private hospitals and clinics that add capacity, community and aged care providers that buy monitoring tools and households that buy glucose sensors and sleep therapy devices. New South Wales held the largest regional share, 32.3% in 2025, because it has the largest population and the largest public hospital network. Queensland is the fastest-growing region at 7.32% a year, as steady migration adds patients to its hospitals. In turn, NSW Health began training staff on a single statewide patient record in November 2025, which links clinical software with hospital equipment.

Which equipment and software does the estimate cover?

The estimate measures the value of diagnostic systems, therapeutic devices, monitoring devices and clinical software sold to hospitals, clinics, aged care providers and households in Australia. Values include public tenders, direct sales to private hospital groups, specialist distribution and retail and online sales of home-use devices.

The estimate excludes medicines, consumables sold without a device, general office software and building works. The value chain runs from global and local manufacturers through regulators, sponsors, distributors and service teams to public health services, private providers, community providers and patients who use devices at home.

Therapeutic devices lead while clinical software rises

Why do therapeutic devices lead product demand?

Based on product type, the market is categorized into diagnostic systems, therapeutic devices, monitoring devices and clinical software. Therapeutic Devices led with a 38.0% share of 2025 value, because hospitals spend heavily on surgical, cardiac, respiratory and implantable systems. Clinical Software grows fastest at 8.51% a year, as state health systems replace older records and link equipment to shared platforms.

Which care settings account for most equipment value?

Based on care setting, the market is categorized into hospital care, ambulatory care, residential care and home care. Hospital Care led with a 58.0% share of 2025 value, because scanners, operating room systems and intensive care equipment sit mainly in hospitals. Home Care grows fastest at 8.27% a year, as subsidized glucose sensors and connected sleep therapy devices move chronic care into homes.

Who buys most clinical equipment and software?

Based on customer type, the market is categorized into public health purchasers, private provider purchasers, community provider purchasers and household purchasers. Public Health Purchasers led with a 52.0% share of 2025 value, because state health departments fund most hospital equipment. Household Purchasers grow fastest at 7.96% a year, as patients buy sensors, masks and home monitors with subsidies and private cover.

How do suppliers sell clinical equipment?

Based on sales channel, the market is categorized into public tender, direct enterprise sales, specialist distribution and retail and digital commerce. Public Tender led with a 47.0% share of 2025 value, because state health systems buy most large equipment through formal tenders. Retail and Digital Commerce grows fastest at 8.06% a year, as pharmacies and online stores sell more home-use devices.

Equipment renewal, connected care and records lift demand

How does clinical equipment replacement lift demand?

Clinical equipment replacement lifts demand, because public hospitals must renew scanners and surgical systems as they age and as patient numbers rise. The Victorian Government announced $35 million on July 18, 2025, for 10 projects at eight health services, including CT, MRI, PET/CT and SPECT-CT units. Philips also holds 20-year managed equipment agreements with two NSW health districts that cover imaging at nine hospital sites. Siemens supplies about 6,000 items under a 15-year managed equipment contract at Fiona Stanley Hospital in Perth. As a result, public tenders hold a 47.0% share of 2025 value, the largest channel share, as states renew imaging fleets.

Why does connected chronic care widen home demand?

Connected chronic care widens home demand, because sensors and therapy devices now send data to patients and clinicians between visits. FreeStyle Libre 2 Plus sensors became subsidized through the National Diabetes Services Scheme on April 1, 2025, with a co-pay of $17.35 per sensor. All people with type 1 diabetes can apply for subsidized glucose monitoring, and FreeStyle Libre 3 Plus sensors for pump users followed on Dec. 1, 2025. ResMed also launched its AirTouch F30i Comfort mask in Australia on Oct. 27, 2025, for AirSense 11 and other sleep therapy devices. In turn, home care grows at 8.27% a year, the fastest setting rate, as oxygen concentrators and sensors move care home.

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How does clinical platform modernization raise software spending?

Clinical platform modernization raises software spending, because state health systems are replacing many separate records with one shared platform. NSW Health began training staff on its single digital patient record on Nov. 17, 2025, with more than 25,000 staff among the first users. The program will replace nine electronic medical records, 10 patient administration systems and five laboratory systems. When complete in 2028, it will cover more than 220 public hospitals, 65 laboratories and about 600 community health centers. As a result, clinical software grows at 8.51% a year, the fastest product rate, as patient record systems link to bedside devices.

Why do an aging population and health spending support growth?

An aging population and steady health spending support growth, because older patients need more diagnosis, surgery and monitoring. People aged 65 and over made up 18.1% of the Australian population in 2025, up from 17.1% in 2022, according to World Bank data. Current health spending reached 10.4% of gross domestic product in 2023, according to the World Bank. The national population also grew by 392,700 people in the year to March 31, 2026, to about 27.92 million, which adds demand for hospital beds, scanners and monitors. In turn, public health purchasers hold a 52.0% share of 2025 value, the largest customer share.

Shared records, AI rules and imaging upgrades reshape buying

How is the shift to shared health records changing diagnostics?

The shift to shared health records is changing diagnostics, because pathology and imaging results now reach patients and clinicians faster. From mid-October 2025, most pathology results became viewable in My Health Record right after upload, according to the Australian Digital Health Agency. From February 2026, limb X-ray reports became viewable at once, while other imaging reports have a five-day delay instead of seven days. Pathology and imaging providers also face share-by-default upload duties from mid-2026, after a six-month delay once the rules are final. As a result, labs that run in vitro diagnostics need connected reporting systems.

Why is the rise of tighter AI software rules notable?

The rise of tighter AI software rules is notable, because many new clinical tools rely on algorithms that change over time. The Therapeutic Goods Administration published a review of medical device software, including AI, on July 25, 2025, and found that targeted reforms are needed. The review recommended urgent work on digital scribes, digital mental health tools and guidance on adaptive and generative AI. It also planned more compliance action against unapproved software and a review of classification rules for predictive tools. Until new guidance appears, developers may refer to ISO/IEC 42001:2023 and ISO/IEC 5338:2023 for AI management and training data. In turn, suppliers of digital therapeutics and AI tools need stronger evidence.

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Can advanced imaging upgrades open a new growth path?

Advanced imaging upgrades offer a growth path, because hospitals want scanners that diagnose earlier with lower radiation. Victoria's July 2025 funding covered a PET/CT unit at Austin Health, a SPECT-CT unit at Grampians Health and a wide-bore MRI scanner at Alfred Health. The South Australian Health and Medical Research Institute installed the first photon-counting CT scanner in Australia under a $9.8 million partnership with Siemens Healthineers and Dr Jones & Partners. That scanner can cut radiation doses by up to 45% compared with older scanners, according to the partners. As a result, diagnostic systems keep strong demand alongside X-ray generators in regional hospitals.

Is there room to grow in fast-growing states?

Fast-growing states have room for new capacity, because population growth adds patients faster than hospitals can expand. Queensland added about 90,100 residents in the year to March 31, 2026, to reach about 5.74 million people. Western Australia added about 64,200 residents over the same period, the fastest growth rate of any state, to reach about 3.10 million. Victoria also added about 109,500 residents, the largest increase of any state. In turn, Queensland records the fastest regional growth in this estimate, as new hospital beds, clinics and aged care places in growing suburbs need scanners, monitors and software.

Price cuts, approvals and cyber risk weigh on suppliers

Why do device price cuts weigh on suppliers?

Device price cuts weigh on suppliers, because private health insurance benefits for many implants are moving closer to public hospital prices. The final reduction of 20% of the gap for cardiac implantable electronic devices on the Prescribed List took effect on July 1, 2025. As a result, implant makers earn less per unit in private hospitals. Private hospitals also push suppliers for lower prices on other implants. Suppliers respond with bundled service, lower-cost product lines and evidence that supports value.

How do approval and compliance rules raise costs?

Approval and compliance rules raise costs, because every device and much clinical software must be listed before supply in Australia. The regulator plans more compliance action against unapproved software, including AI tools. In turn, smaller developers spend more on evidence, quality systems and regulatory advice before launch. Suppliers respond with early regulator contact, shared quality systems and approvals gained in other markets first, which can shorten local reviews.

Why does cyber risk slow connected equipment rollouts?

Cyber risk slows connected equipment rollouts, because networked scanners, pumps and monitors can expose hospital systems to attack. Health services must test security before they link devices to shared patient records. As a result, procurement takes longer and integration costs rise for suppliers and hospitals. Suppliers respond with security updates, network segmentation tools and service contracts that cover patching for the full life of the equipment.

How do budget limits delay equipment purchases?

Budget limits delay equipment purchases, because state health systems fund new scanners from capital programs that compete with staff and building costs. Large purchases often wait for annual budget rounds or special funding announcements. However, managed equipment contracts can spread these costs over 15 to 20 years of service. Suppliers respond with leasing, managed services and long-term replacement plans that fit public budget cycles.

New South Wales leads while Queensland grows fastest

Why does new South Wales hold the largest share?

New South Wales held a 32.3% share of 2025 value and grows at 6.62% a year, because it has the largest population and the largest public hospital network. The state had about 8.67 million residents at March 31, 2026. NSW Health is also rolling out a single digital patient record across more than 220 public hospitals by 2028. Medtronic runs its Australian head office in Macquarie Park, New South Wales. However, growth is slower than in other zones because the state population grew only about 1.1% over the year.

How does Western and Southern Australia support demand?

Western and Southern Australia held a 24.0% share of 2025 value and grows at 7.02% a year, because the zone combines Western Australia, South Australia, Tasmania and the territories. Western Australia had about 3.10 million residents and South Australia about 1.92 million at March 31, 2026. Fiona Stanley Hospital in Perth uses a long managed equipment contract with Siemens, and Adelaide hosts the first photon-counting CT scanner in Australia. In turn, the zone buys advanced imaging and service-based equipment.

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How does Victoria support equipment demand?

Victoria held a 23.9% share of 2025 value and grows at 7.02% a year, because Melbourne hosts large teaching hospitals and cancer centers. The state had about 7.15 million residents at March 31, 2026, after adding about 109,500 people in a year. The state government funded new CT, MRI, PET/CT and SPECT-CT units in July 2025 at eight health services. As a result, Victorian hospitals remain major buyers of diagnostic systems.

Why does Queensland grow fastest?

Queensland held a 19.8% share of 2025 value and grows fastest at 7.32% a year, because steady migration from other states keeps adding patients. The state had about 5.74 million residents at March 31, 2026, after adding about 90,100 people in a year. In turn, new hospital beds and clinics in southeast Queensland need scanners, monitors and software.

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Subsidies, launches and record rollouts from 2024 to 2026

Connected sensors, AI and unified records reshape care

• Connected glucose sensors send readings to phones and insulin pumps every few minutes, which helps patients manage diabetes at home.
• Photon-counting CT counts individual X-ray photons, which gives sharper images and can cut radiation doses for patients.
• Robotic-assisted surgery gives surgeons precise control and procedure data, which supports urologic, gynecologic and general laparoscopic work.
• Unified patient record platforms combine records, patient administration and lab data, which lets devices send results into one system.

Suppliers compete on service, evidence and connectivity

Competition is led by global device makers, imaging companies and local digital health firms, and rivals compete on service, evidence and connectivity. ResMed launched a new fabric CPAP mask in Australia in October 2025, which won a gold Good Design Award. Abbott supplies FreeStyle Libre glucose sensors that are subsidized through the national diabetes scheme. Medtronic offers its Hugo robotic surgery system from its Macquarie Park head office. Siemens Healthineers runs long managed equipment contracts and supplied the first photon-counting CT scanner in Australia. Philips holds 20-year imaging agreements with two NSW health districts, while Telstra Health builds hospital billing and record software. GE HealthCare, Johnson & Johnson MedTech, Stryker and Becton Dickinson also compete for hospital tenders and private hospital contracts.

Companies profiled and their roles in this market

Credence Research view on Australian clinical equipment

Credence Research's view is that Australian clinical equipment spending will grow steadily because hospitals must renew aging equipment while chronic care moves into homes. Therapeutic devices remain the largest product group, while clinical software and monitoring devices gain share as state record platforms and subsidized sensors spread. Price cuts for implants, tighter software rules and cyber risk still slow growth. Suppliers with strong service networks, connected products and clinical evidence should gain share fastest, especially in public tenders and home care.

How the Australian clinical equipment estimate was built

The report uses 2025 as the base year on a calendar basis, and market values come from the Credence Research model. That model combines World Bank health spending and population data, official state population statistics, government funding announcements, regulator releases and company announcements on launches and contracts. Segment splits and regional growth rates are Credence Research estimates, while regional shares follow the client-defined split. Sources used are public reports, official statistics, trade press, government releases and company releases, and no interviews or surveys were used.

Hospital renewal and home care carry growth to 2035

Clinical equipment and software value is expected to reach USD 19.25 billion by 2035, a 6.95% CAGR during 2026–2035, as hospital renewal, chronic care at home and record platforms keep spending rising. Growth should be strong while NSW completes its single patient record by 2028 and states replace imaging fleets. After that, home monitoring and AI software will carry more growth as patients age. Faster approvals would lift uptake, while deeper implant price cuts would slow supplier returns.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.