Insights: The Rising Giant Industry Report

The Rising Giant: Creating a New Economic and Health Future for Australia

Australia’s digital and connected health sector has experienced extraordinary growth and is poised to deliver substantive economic and health benefits, according to new data from ANDHealth, Australia’s leading digital health commercialisation company.

The comprehensive report, The Rising Giant: Creating a New Economic and Health Future for Australia, shows that Australia is now home to 1,005 digital and connected health companies, with the sector growing at a compound annual growth rate (CAGR) of 52% since 2019.

“The growth we're witnessing in Australia's digital health sector is nothing short of remarkable,” said Bronwyn Le Grice, Chief Executive Officer of ANDHealth.

“This exponential expansion demonstrates that Australia has firmly established itself as a significant player in the global digital health landscape, with the potential to become a world-leading hub for health innovation.”

Key Takeaways from The Rising Giant

We’re seeing a lot more digital and connected health startups
Australia’s digital and connected health sector has flourished in recent years, with the number of small to medium-sized enterprises (SMEs) reflected in this report increasing from 569 in 2022 to 1,005. That's a 76% increase in two years and 52% CAGR (compound annual growth rates) since 2019.
The sector is maturing, which brings resilience
There is a notable increase in the number of digital and connected health companies entering later stages of development and reporting a more resilient financial position.
Funding remains patchy
While reported funding to startups has grown in recent years, there is still a reliance on grants and an increase in funds coming from bootstrapping.
Digital health is about solving multiple needs
As health systems face increased demand and funding pressures, there is a shift in technologies to solve clinical workflows and address opportunities for efficiency and improved productivity.
Evolving technology is changing the face of digital health
Digital health is not immune to the phenomenon of artificial intelligence and machine learning, with 22% of companies now claiming to use AI or ML as their primary technology.
Crushing stereotypes
Health startups continued to outperform the broader norms around founder gender balance, with 44% of reporting companies having a female founder compared to the wider startup ecosystem of 27%.^[¹^]
Unique and unrivalled insights
The data set used to form this report remains Australia’s largest and most robust collection of insights showing the growth of this key sector.

Insights:The Rising Giant

State of the Industry Report 2025

The Rising Giant: Creating a New Economic and Health Future for Australia

Key Takeaways from The Rising Giant

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