El Basque government, through Basque Trade & Investment (BasqueTrade), has identified Australia as a priority market in its internationalization strategy. This oceanic country, characterized by a solid economy and a developed market, presents an attractive environment for Basque companies seeking to expand their horizons beyond Europe.
A comprehensive report prepared by BasqueTrade details the characteristics of the Australian market and identifies the sectors with the greatest potential for investment and trade. These include renewable energy, electricity transmission and distribution, medical devices, and the railway industry.
«Australia is a market of utmost importance“Not only because of the size of its industry and its GDP, but also because of its technological capabilities and the potential for strategic alliances that this entails,” says a spokesperson for BasqueTrade. “Our recent analysis, which quantifies various risk and opportunity indicators, places Australia among the most interesting countries globally.”
Renewable Energy: A Booming Sector
The Australian renewable energy sector is undergoing a radical transformation, driven by rising electricity demand and the need to transition to sustainable sources. Installed renewable energy capacity is expected to increase tenfold between 2015 and 2035, reaching 185 GW.
Solar energy, thanks to the country's high solar irradiation, will play a fundamental role in this expansion, with an estimated growth from 4,5 GW in 2015 to 128 GW in 2035. wind power will also experience significant growth, especially with the development of offshore wind projects starting in 2030. Furthermore, hydrogen is emerging as a strategic sector, with projected demand of 23.890 ktpa by 2050.
"Basque companies specializing in the manufacture of turbine components, engineering, and infrastructure and logistics solutions for hydrogen have a unique opportunity to participate in this growing market," the report states.
The opportunities that Australia presents can be realized through exports, local investments or collaboration agreements.
Straights and Opportunities
Access to the Australian market presents challenges, such as regulatory variability between states and the federal government, and the need to establish strong partnerships with local players. However, the opportunities are vast, especially in wind turbine component manufacturing and project management. EPC and O&M.
“Although China leads in component imports, local content requirements create space for local production,” the report explains. “Furthermore, experience in managing delays and cost overruns on complex projects is highly valued in the Australian market.”
Electric Transmission and Distribution: Grid Modernization
Modernizing the Australian electricity grid is another area of great interest. The government has launched ambitious investment plans, such as the «Rewiring the Nation", with an endowment of almost 20.000 billion dollars, and the "Integrated System Plan«, which foresees the construction of 10.000 kilometers of new transmission infrastructure by 2050.
"These initiatives create opportunities for companies specializing in the supply of components, technical assistance, and the execution of EPC projects," the report states. "Reliance on imports and a shortage of skilled labor make foreign expertise essential."
Medical Devices: An Expanding Market
The Australian medical device market is booming, with expected annual growth of 7% through 2028. Treatment innovation and increased investment in the healthcare sector are driving demand for medical equipment.
"There are market niches in the production of medical fluids, single-use laparoscopic instruments, hemostasis products, and remote monitoring devices," the report details.
Railway Sector: Infrastructure Projects
Australia has one of the most extensive rail networks in the world, and the country is immersed in major infrastructure projects, such as the metro. Sydney, Inland Rail and the Melbourne Suburban Rail Loop.
“The Australian rail industry relies heavily on imports of advanced technology and components,” the report states. “This presents an opportunity for Basque companies with expertise in signaling, rail control, and the manufacture of ETCS-compliant rolling stock.”
Support from the Basque Government
The Basque Government, through Basque Trade & Investment and the SPRI Group, is committed to the internationalization of Basque companiesThe recent opening of a commercial office in Sydney will facilitate the identification of new opportunities in the Australian market.
“In addition to this report, we have published specific studies on the Australian energy transition and new renewable initiatives,” explains a representative from SPRI. “We also offer internationalization support programs and newsletters to keep companies informed.”
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