Australia’s aged care sector is rapidly emerging as one of the most significant opportunities in healthcare technology.
An ageing population, major government reforms, workforce shortages and increasing demand for care services are driving the shift. The sector is attracting growing interest from innovators, investors and technology companies looking to solve some of healthcare’s most pressing challenges.
Speaking at Digital Health Festival 2026, Robert Milsom, Health and MedTech Sector Lead and Commercial Business Advisor at New Zealand Trade and Enterprise (NZTE), identified aged care technology as one of the strongest growth opportunities across the healthcare industry.
“Aged care technology and health tech are major areas for growth,” he said.
His comments come at a time when healthcare organisations face challenges to deliver more care, with fewer resources, while improving patient and consumer outcomes.
A sector under pressure
Australia’s aged care system faces a unique set of challenges.
An ageing population is driving demand for services at the same time providers are grappling with workforce shortages, rising operational costs, increased compliance requirements and growing consumer expectations.
Finding more workers is only one part of the challenge. The sector also must find smarter ways to deliver care.
Healthcare leaders are increasingly viewing technology as part of the solution.
Aged care providers are investing in technologies that improve efficiency while supporting better outcomes, such as:
- Workforce management platforms
- Remote monitoring tools
- Care coordination software
- Consumer engagement solutions.
Government reform is creating momentum
One reason industry observers are optimistic about the future of aged care technology is the growing commitment from governments to digitally transform healthcare systems.
Despite ongoing economic pressures, Milsom believes the long-term outlook remains positive.
“There is significant opportunity and hope, driven by government foresight and a willingness to invest in and digitally transform the sector on both sides of the Tasman,” he said.
Recent aged care reforms, including the transition to the Support at Home program, are creating new opportunities for providers to adopt technologies that improve visibility, reporting, service delivery and client outcomes.
For technology companies, these reforms are creating demand for solutions that help organisations operate in increasingly complex environments.
Why international companies are paying attention
Opportunities for technology in aged care are attracting businesses beyond Australia.
International health technology companies are increasingly looking to Australia as a growth market.
Milsom leads NZTE’s health sector portfolio, supporting New Zealand companies exporting equipment, biotech, pharmaceuticals, medical devices and health technology solutions into Australia.
NZTE currently works with around 70 New Zealand health companies entering the Australian market. At Digital Health Festival 2026, this growing interest was clear, where the New Zealand pavilion featured 26 companies, up from just six companies in 2023.
The growth reflects increasing confidence in Australia’s healthcare and aged care sectors as destinations for innovation and investment.
A market still early in its digital transformation journey
While hospitals and primary care have undergone significant digital transformation over the past decade, many parts of the aged care sector are still relatively early in their technology adoption journey.
This creates substantial opportunities for innovators.
Many providers continue to rely on disconnected systems, manual workflows and labour-intensive processes that create inefficiencies across care delivery.
Technology providers that can improve workforce productivity, care coordination, communication and outcomes measurement are likely to find significant opportunities within the sector.
Success will come from solving specific problems
Despite ample opportunity, Milsom believes success often comes from focusing on a specific niche rather than attempting to solve every challenge at once.
Workforce management, remote care, health monitoring, consumer engagement, medication adherence or service coordination are all potential niche areas. Organisations that deeply understand a particular problem within these are often best positioned to create meaningful value.
As competition increases, specialised solutions may ultimately outperform broad platforms that attempt to address every aspect of aged care delivery.
The next frontier for healthcare innovation
For years, much of the health technology conversation covered hospitals, telehealth, artificial intelligence and primary care innovation.
Today, aged care is attracting more attention.
The combination of demographic change, government reform, workforce pressures and digital transformation is creating a unique environment for growth.
As healthcare leaders search for solutions that can improve outcomes while easing pressure on the system, aged care is no longer being viewed as a niche sector.
Rather, it’s becoming one of the most important opportunities in healthcare innovation.
For the companies willing to solve the challenges facing providers, carers and older Australians, the opportunity may only just be beginning.
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