ANNUAL REPORT | FY2025–26

Procurment Market Insights Report

The tender market is turning a corner. Are you ready for what's next?

After three consecutive years of declining tender volumes, FY2025–26 marked the first year of recovery, with 27,916 tenders published across the Australian Tenders database.
This year's report goes beyond the numbers to uncover where demand is growing, which Buyers are active, how procurement rules have changed, and where Suppliers should focus next.

27,916

Tenders published in Australian Tenders database in FY2025-26 

+1.1%

Year-on-year growth. FY25-26 marks the first increase after three years of decline

44.7%

Local Government share
Still the largest source of tender volume

91 days

average time from publish to award. (Down from 128 days in FY2023–24)

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Where the market is moving and what
it means for Suppliers

After three years of falling tender volumes, FY2025–26 finally brought the market back into growth. At the same time, changing government priorities are reshaping where the opportunities lie.

Federal Government procurement jumped 33.9% while State Government activity kept shrinking. Construction is still the biggest category, yet five years of decline show spend steadily moving towards services, maintenance and operations. And defence, renewable energy, digital and infrastructure investment are creating opportunities for Suppliers who may never have bid on government work before.

The market may be growing, but not every category is moving in the same direction. Knowing where demand is building can help you focus your bidding strategy where it matters most.

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The four shifts shaping the FY2026–27
 tender market

1.

Tender volumes are rising again

Tender volumes rose 1.1% in FY2025–26 after three consecutive years of decline. The report examines what is driving the recovery and where growth is coming from.

2.

Defence is becoming a major growth market

With major investment through AUKUS and the National Defence Strategy, defence is creating opportunities well beyond traditional defence Suppliers, including construction, engineering, ICT, professional services and manufacturing.

3.

Procurement reform is changing the playing field

Changes to Commonwealth procurement rules, the Supplier Portal and Indigenous Procurement Policy are reshaping how government opportunities are accessed and how Suppliers compete for them.

4.

Renewable energy is no longer a specialist market

Growing renewable energy and electrification programmes are creating opportunities across construction, civil, electrical and professional services, bringing a much broader supplier base into the market.

Everything in the report

01
Executive snapshot
The key numbers, trends and signals shaping the Australian tender market in FY2025–26.
 02
What happens next
Five things suppliers need to know about FY2026–27, from market growth and defence to procurement reform and supplier readiness.
03
Tender market overview
How tender volumes changed in FY2025–26, who is buying and what the return to growth looks like.
 04
Five-year tender trends
A five-year view of tender volumes, buyer activity and the structural shift away from construction-led procurement.
05
Tender pricing & buyer behaviour
What contract values, response windows and procurement timelines reveal about how buyers are operating.
 06
Category trends & momentum
The categories growing, declining and changing shape, including the sectors showing the strongest momentum.
07
Emerging markets & areas to watch
The emerging opportunities shaping the next phase of procurement, from defence and renewable energy to technology and digital services.
 08
Buyer behaviour trends
How procurement cycles are changing, including faster award times and the new four-to-five-week response window. 
09
Procurement reform watch
 10
 Geographic opportunity map

The Commonwealth and state-level reforms changing the conditions Suppliers will operate in during FY2026–27.

The states, regions and major projects showing the strongest and most consistent tender opportunities.
11
AI in procurement
 12
 Tender demand forecast
How buyers and suppliers are using AI, where adoption is heading and what it means for tendering. The infrastructure, defence, technology and renewable energy programmes expected to shape demand in FY2026–27.
13
 Tender success windows
    
When procurement activity peaks across different industries and the triggers that tend to drive new opportunities.    
"Most government tenders sit in the mid-market."
Australian Tenders data shows 42.8% of FY2025-26 tenders with a disclosed value fell between $125,000 and $500,000, the band where response requirements are proportionate and the updated Commonwealth Procurement Rules apply.


- Australian Tenders, Procurment Market Insights FY2025–26

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If your work intersects with
procurement, this report is for you.

Procurement planning illustration
Government & Procurement Teams
Understand the market you're buying in
See how tender volumes, Buyer behaviour, procurement cycles and emerging categories are changing across Australia.
Tender response planning illustration
Bid Writers & Tender Consultants
Give your clients better market intelligence
 Use five-year trends, category momentum, Buyer insights and upcoming procurement activity to inform bid strategies and client advice.
Supplier readiness illustration
Suppliers & SMEs
Know where to focus your next bid
Learn how to use AI tools to compete for government tenders without the compliance and probity risks.
Business development illustration
Business Development Teams
Find where the next opportunities are
Understand which sectors, buyers and regions are generating demand, and where your business could position itself for FY2026–27.

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FAQ's

  • What is the Australian Tender Market Insights FY2025-26 report? addremove

    It's an annual analysis of the Australian and New Zealand tender market by Australian Tenders. It covers tender volumes, buyer behaviour, category and state trends, pricing, procurement reform, and a demand forecast for FY2026-27. It's based on five years of data from the Australian Tenders database.

  • What data is the report based on? addremove

    The report draws on 153,122 tender records published between FY2021-22 and FY2025-26. These are aggregated by Australian Tenders from AusTender, state and territory procurement portals, Tenderlink, VendorPanel and industry-specific sources. Data runs to 30 June 2026. External research is cited in a companion citations document.

  • Does the dataset include New Zealand tenders? addremove

    Yes. New Zealand tenders are included and reported as a separate region. In FY2025-26 there were 3,407 New Zealand tenders, a 0.9% increase on the previous year.

  • What's in the report? addremove

    Thirteen sections across three parts: the market, the shifts, and the playbook. Topics include five-year trends, momentum scores by category, emerging markets, buyer behaviour, procurement reform, geographic opportunity zones, AI in procurement, a FY2026-27 demand forecast and peak tender months by industry. 

  • Is it really free? addremove
    Absolutely!

    We believe this knowledge benefits more than just us, so we’re making it freely available to share with the wider community.

    If it helps you on your tendering journey, we’ve done our job.